Master Thesis 12.06

JUNE
13, 2017

TO SURVIVE OR NOT SURVIVE

A BEST PRACTICE ANALYSIS ABOUT AGRICULTURAL FAMILY FIRM
SUCCESSION
P.J.A. VAN DE VOORDE

TILBURG UNIVERSITY
Supervisor: W.A. Stienstra
Master thesis Pauline van de Voorde

Title of the thesis: To survive or not survive.
Subtitle: A best practice analysis about agricultural
family firm succession
Word count: 12352
Name student: Pauline van de Voorde
ANR: 634495
E-mail: p.j.a.vdvoorde@tilburguniversity.edu
Date: 16-03-2017
Tilburg University, Tilburg School of Economics and
Management, Department of Management
Msc program: Strategic Management
Type of master thesis: external project at a company
Name of the company: Rabobank
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Management summary
This study researches which characteristics of the agricultural family firm succession influence the level
of satisfaction with the succession process. This is done by a qualitative empirical study on the
succession process. The literature review shows what the succession process is and how it can differ.
The literature elaborates on the process of succession, definition of the agricultural family firm, what
satisfaction is and how it can be measured. Based on these four contexts of the succession process:
incumbent influences, successor influences, family influences and business influences, the level of
satisfaction changes. Satisfaction is measured through incumbents and successors level of satisfaction,
the expected outcome and the experienced outcome deriving from the discrepancy theory and the
financial satisfaction. This is done by an empirical research, through conducting interviews with
agricultural firms. Incumbents and successors are separately interviewed about the previous mentioned
concepts. From those interviews results are drawn which conclude that the level of satisfaction is higher
when succession is being planned. Also is shown that a good relationship between the successor and the
incumbent increases the level of satisfaction. Which also is the case for the relationship of the
incumbent or successor with an external party such as an accountant or a bank. The results show that
the biggest obstacle of family firm succession within the agricultural sector is family conflict which can
be avoided by communicating and establishing good relationships within the family.
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Preface
This Master thesis is the las step to finalize my Master degree in Strategic Management at the University
of Tilburg. Before starting this study, I finished the Bachelor Business Economics. This study introduced
me to the field of family firm research, which I wrote my Bachelor Thesis on. After this research, I knew I
would write my Master Thesis on the same field. Therefore, this study is about succession within the
agricultural family firm.
In combination with my internship at Rabobank, I found an interesting subject and began to work. It was
not always easy but luckily I had a great support system. Therefore, I want to thank my colleagues at the
Rabobank Oosterschelde and especially my supervisors John Hagers and Judith Balk-de Vries. I also want
to thank all the respondents who made this thesis possible. My mother who gave me feedback during
this research. Most of all I like to thank my supervisor at Tilburg University Miranda Stienstra, because of
her great feedback I always was motivated to finish this project. I enjoyed working on it hopefully will
the readers enjoy it as much as I did.
Kind regards
Pauline van de Voorde, Tilburg 2016
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Table of contents
Preface ......................................................................................................................................................... 4
Chapter 1 Introduction ................................................................................................................................. 8
1.1 Problem indication ............................................................................................................................. 8
1.2 Problem statement ............................................................................................................................ 9
1.3 Research questions .......................................................................................................................... 10
1.4 Structure ........................................................................................................................................... 10
Chapter 2 Theoretical background succession process .............................................................................. 11
2.1 Introduction ...................................................................................................................................... 11
2.2 How can the succession process within the family firm differ? ....................................................... 11
2.3 Family firm ........................................................................................................................................ 11
2.3.1 Agricultural family firm .............................................................................................................. 13
2.3.2 Definition for the agricultural family firm ................................................................................. 14
2.4 Succession process ........................................................................................................................... 15
2.4.1 Context of the succession process ............................................................................................ 16
2.5 Conclusion ........................................................................................................................................ 19
Chapter 3 Theoretical background satisfaction with the transition ........................................................... 20
3.1 Introduction ...................................................................................................................................... 20
3.2 Influences of the succession process ............................................................................................... 20
I. Incumbent/Successor influences .............................................................................................. 20
II. Family influences ...................................................................................................................... 21
III. Business influences ................................................................................................................... 21
3.3 Satisfaction with the transition ........................................................................................................ 21
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3.4 Relationship between the succession process and the level of satisfaction with the transition ..... 23
I. Incumbent/successor influences .............................................................................................. 23
II. Family influences ...................................................................................................................... 25
III. Business influences ................................................................................................................... 26
3.4 Conclusion ........................................................................................................................................ 26
Chapter 4 Methodology ............................................................................................................................. 28
4.1 Introduction ...................................................................................................................................... 28
4.2 Research design ................................................................................................................................ 28
4.2 Data collection and analysis ............................................................................................................. 28
4.2.1 Kind of data and which data ...................................................................................................... 29
4.2.2 How to collect data ................................................................................................................... 30
4.2.3 Access to data ............................................................................................................................ 30
4.2.4 Data analysis .............................................................................................................................. 30
Chapter 5 Results ....................................................................................................................................... 31
5.1 introduction ...................................................................................................................................... 31
5.2 The process of succession ................................................................................................................ 31
5.3. Incumbent ....................................................................................................................................... 34
5.4. Successor ......................................................................................................................................... 35
5.5. Family influences ............................................................................................................................. 36
5.6 Advice ............................................................................................................................................... 36
5.7. Satisfaction ...................................................................................................................................... 38
Chapter 6 Conclusion ................................................................................................................................. 40
6.1 Introduction ...................................................................................................................................... 40
6.2. Discussion ........................................................................................................................................ 40
6.2.1 Succession process .................................................................................................................... 40
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6.2.2 Incumbent influences ................................................................................................................ 41
6.2.3. Successors influences .............................................................................................................. 42
6.2.4 Family ........................................................................................................................................ 42
6.3 Conclusion and implications ............................................................................................................. 42
6.3.1 Conclusion ................................................................................................................................. 42
6.3.2 Implications ............................................................................................................................... 44
6.4 Limitations and directions for future research ................................................................................. 44
Bibliography ............................................................................................................................................... 46
Appendices ................................................................................................................................................. 52
Appendix 1 Variables in the Literature Mentioned the Most (Le Breton-Miller, Miller, & Steier, 2004)
................................................................................................................................................................ 52
Appendix 2 Contributions to the Four perspectives to the Study of Resistance to Succession in Family
Firms (Handler & Kram, 1988) ............................................................................................................... 53
Appendix 3 Theoretical Model of Successor-Related Factors That Influence Successful Succession

(Venter, Boshoff, & Maas, 2005) ............................................................................................................ 54
Appendix 4 Characteristics of the succession process that influence the level of satisfaction with the
transition ................................................................................................................................................ 55
Appendix 5 Letter respondents .............................................................................................................. 56
Appendix 6 Interview questions Dutch and English ............................................................................... 57
Appendix 7 Preview transcript interview ............................................................................................... 61
Appendix 8 Preview of coding scheme ................................................................................................... 63
Appendix 9 Results about the satisfaction with the succession process drawn from combined
interview questions. ............................................................................................................................... 71
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Chapter 1 Introduction
1.1 Problem indication

In the Netherlands alone, there are more than 270.000 family firms (CBS, 2016). These firms can be
considered as family firms because they are originally established by family and managed by the same or
at least one family member of the founding family. From these figures can be stated that family firms
play a big role in the Dutch economy. Family firms vary on several aspects in contrast to non-family
firms. Family firms tend to have a higher priority on continuity in contrast to non-family firms according
to Sievers & de Vries (1996). Family firms are also risk averse (McConaughy, Matthews, & Fialko, 2001).
Another characteristic of a family firm is the combination of financial and non-financial goals. The
research from Mishra & McConaughy (1999) shows that family firms not only focus on the financial
aspect but also on the non-financial goals like keeping the good reputation of the family name.
When firms differ on these aspects, it would be obvious hat different problems will arise. One problem
that arises with many family firms is the problem of succession. Researchers in the field of family firms
agree that succession is one of the most important issues that family firms should deal with (Handler W.
C., 1994). When the current generation of owners, also called incumbent reaches the pensionable age a
suitable successor should be found. For a family firm to continue, it is necessary that a family member
takes over the business.
Reality shows that on average 40% of the family firms struggle with succession (van der Hof, 2013). The
struggle that firms deal with is mostly the problem of not being able to find a suitable successor.
Another problem family firms experience is the incumbents fear for the future, this can result in.
Resistance to changing the corporate structure or willingness to transfer the business outside the family.
The study of Beckhard and Dyer (1983) shows that only 30% of the family firms survive the transition to
the second generation and only 10% survive the third generation. These firms are going through the
succession process which means they want to continue. When the next generation is not willing or able
to take over the firm, a problem arises: what is going to happen to the family firm?
In the Netherlands, these succession problems also arise, especially in the food and agricultural sector.
In the Netherlands, 45% of the firms located in the food and agricultural sector do not have a suitable
successor (Rabobank, 2016). The food and agricultural sector experience more of the succession
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problems because the sector is not longer attractive to young people. According to the study of White
(2012) young people are uninterested in farming and neglect the small-scale agriculture and rural
infrastructure. Other professions seem more attractive to them or they are not willing to live at the
countryside anymore. The study of de Wageningen Universiteit (2009) confirms that Dutch food and
agricultural firms are becoming less and less interesting as employers. Still firms in the food and
agricultural sector want and need to survive. Another problem that the Dutch food and agricultural
sector has to deal with is the ageing of the population of the countryside. In 2025, the elderly people (65
years and older) will be 21% of the total population, which now counts for 14% of the population (CBS,
2006).
The company which is involved with this master thesis is the Rabobank located in Goes. Because most
food and agricultural businesses are in Zeeland, the Rabobank has experience of dealing with these
problems. Rabobank offers advice on how to manage the succession of a family firm and helps the
incumbent to find a suitable successor. Because the succession process is so complex and should be well
though it takes many years (Cabrera-Surez, De Sa-Prez, & Garca-Almeida, 2001). Family members
feel a strong emotional attachment to the firm, and therefore find it hard to hand over. Strategic
challenges associated with a changing firm mostly need professional involvement of a third party
(LeCouvie & Pendergast, n.d.). Literature shows that succession planning leads to long-term survival of
family firms (lp & Jacobs, 2006). The Rabobank wants to get a better understanding on how to advise
family firm owners who cope with succession problems. Therefore, this thesis will be about the
succession problem that most family firms in the food and agricultural business cope with.
1.2 Problem statement

The problem that family firms in the food and agricultural sector encounter is that the succession
process can be more effective. The succession process itself is a difficult process with many obstacles.
When those problems can be tackled beforehand, the succession will be more successful and therefore
result in the continuation of the firm. Based on the problem indication seen before, a problem
statement can be formulated:
How can the succession process within the agricultural family firm influence the level of satisfaction with
the transition?
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1.3 Research questions
Now that the problem statement is formulated, research questions can be stated. Based on the problem
statement given before this research will be about the succession process within agricultural family
firms. To answer the problem statement in a proper way research questions have to be formulated.
1. How can the succession process within agricultural family firms differ?
2. How does the succession process within agricultural family firms influence the level of satisfaction
with the transition?
A visual representation of the conceptual model is given below in figure 1.
Figure 1 Conceptual Model
1.4 Structure
In this thesis, the question: How can the succession process within the agricultural family firm influence
the level of satisfaction with the transition? will be answered. To do so, some different steps should be
followed. After this introductive chapter, the literature about the topic must be explained. This will be
done in chapter two and three. In the next chapter, chapter four, the methodology of this research will
be explained. Following from this chapter, chapter five will explain the results. Finally, chapter six will
conclude this research by giving a discussion compared with a conclusion, limitations and some
suggestions for future research. At the end of the thesis the references and the appendix can be found.
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Chapter 2 Theoretical background succession process
2.1 Introduction
In this chapter, the theoretical background will be explained. This chapter will give a theoretical
explanation on the problem statement. Each research question will be addressed separately concluding
from these findings the problem statement can be answered. The first research question that will be
addressed is the question: How can the succession process within agricultural family firms differ?
2.2 How can the succession process within the family firm differ?
In order to give some theoretical background and answer the first research question some research
should be done. To get a better understanding about the succession process, the subject family firm has
to be examined. After that the succession process will be explained. Based on this explanation some
elements of the succession process will be found. Those different elements explain how the succession
process can differ. A concluding answer to the first research question will be given.
2.3 Family firm

Family firms can be distinguished from non-family firm with different attributes. Attributes that have
been identified are: the long-term view, risk aversion and the combination of financial and non-financial
goals (Chrisman, Steier, & Chua, 2008; Sievers & de Vries, 1996). Family firms are more long-term
orientated because they value continuity more than non-family firms. Therefore, their focus is more on
creating valuable relationships with employees, shareholders and customers. Which in return creates a
trustworthy relationship that improves the continuity. Due to the overlapping nature of family and
business, family firms are more risk averse (McConaughy et al., 2001). A more conservative and resistant
to change behaviour also contributes to the risk aversion. By behaving risky the family firm not only
jeopardizes losing family assets but also social wellbeing of future generation (Naldi, Nordqvist, Sjberg,
& Wiklund, 2007). Family firms combine financial and non-financial goals. Financial goals are necessary
to keep the company going, for example: creating firm value, profit and being efficient. Non-financial
goals could be family harmony, family employment opportunities and management succession
(Chrisman, Chua, & Sharma, 2003; Chua et al. 1999).
Because this research examines the succession process within family firms, a definition of the subject
family firm has to be given. There has been many research done about family firms. So therefore, there
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are also many definitions given of family firms, but one unanimous definition used by everyone has been
found. A list of frequently used definitions of family firms can be found in table 1.
Table 1 Selected family firm definitions from the literature (Corinna, 2013)
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Table 1 shows that different researchers focus on different aspects when looking at the definition of
family firms. The study of Arosa, Iturralde & Maseda (2010) for example focuses on the body of common
stock that is held by the family and the participation of the family members in monitoring the firm.
Definitions of family firms are frequently stated as a number or percentage of stock held by the family.
As for the study of Barth, Gulbrandsen & Schnea (2005), which also focuses on the percentage of stock.
For this study, the percentage of stock is not one of the important factors that distinguishes a family firm
from a non-family firm. Because most agricultural family firms are not stock market listed, this part of
the definition is not of interest for this research.
Factors that are indeed of interest for this thesis are the involvement of family members or employees
in the family business. The study of Arosa et al. (2010) emphasizes the participation level of the family
members. This is also the case for the study of Chua et al. (1999), who stresses on the intention to
shape and peruse the vision of the firm. How these factors apply to the agricultural family firm will be
explained later.
Based on frequently used definitions it can be stated that researchers agree that there has to be a family
influence in the business in order for a firm to operate as a family firm (Chua, Chrisman, & Sharma,
1999). The study of Steier and Chrisman (2004) defined a generally used definition about family firms. A
family firm distinguishes from a non-family firm because of the familys abilities and intentions to
influence business decisions and behaviours. Previous research favoured definitions that where broad
and consisted of multiple dimensions such as ownership, management and supervision. When you look
at the definitions used over time, generally speaking it can be stated that all definitions seem to
emphasize that family firms are, for a large part, owned and managed by family members, which does
not always have to be the case when for example a transition of ownership took place.
2.3.1 Agricultural family firm

Family firms are part of every sector in every economy, hence also in the agricultural sector. This thesis
studies family firms who operate in the agricultural sector. In the Netherlands, an agricultural firm is
defined as: a firm that cultivates agriculture or is active in the farming industry with the goal to make a
profit with those activities. In 2017, the Netherlands has more than 73.000 firms that are active in the
agricultural industry (CBS, 2017). Of those 73.395, the majority are still family firms. Therefore, the
agricultural sector is important in respect of the family firm research. Agricultural firms frequently
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started as a one-man business which develops over time into a growing family firm. Because most firms
do not intent to become big, the definition of family firms in the agricultural business is slightly different
than the definition for normal family firms. The agricultural firm is more than a profit maximizer. It is an
asset whose productive life expectancy may be well beyond the life of its operator, and whos future
value can depend on its continuation (Mishra, El-Osta, & Johnson, 2004). The founder often works
during his whole lifetime at the farm; he or she is attached to the land, whose symbolic importance
exceeds its economic value in many cases. The number of stock held or percentage of shares is not
important for the agricultural firm. Agricultural family firms rely more on the participation of the family
members and involved employees than non-family firms. The founder of the agricultural firm is mostly
the one who makes the most hours at the farm, and is therefore seen as the heart of the firm. When this
person retires and hands over the business the driving force behind the firm ceases to exist. It is
therefore important that the new owner, family member or devoted outsider, shares the same passion
and vision to carry out the agricultural firm. Compared to other sectors, the agricultural sector is unique
because most firms are passed on within the family (Rabobank, 2016). Therefore, the characteristic for
having a long-term view fits the agriculture firm perfectly.
2.3.2 Definition for the agricultural family firm

Based on the statements made before, it is found that the agricultural firm is different. The shared vision
and passion for the firm is an important aspect of the definition of an agricultural family firm. Because of
the many definitions, this thesis will refer to an agricultural family firm when the firms vision is in line
with the following definition.
The firms that are researched have the characteristics of a normal family firm, are active in the
agricultural sector and the involvement and commitment of a family member or devoted outsider or
employee to keep the business going.
With this definition being used it is not necessarily for the family firm to have a family member own and
manage the firm. When a non-family member takes over the family business the vision and attributes of
the family firm will still be visible through the operating activities. The firm is established as a family firm
which can be seen in the vision and passion of the successor. Because the successor knows the values,
vision and mission of the firm when it is still owned by the incumbent, there will still be some influences
of the incumbents family to keep the firm a family firm.
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2.4 Succession process
Now that the definition of a family firm is established the succession process can be researched further.
When the family firm has to be transferred from one generation to the next transferring of the business
takes place. Before the succession process can be explained, first the term succession has to be
revealed. Succession is described as the transfer of leadership from one family member to another
(American Family Business Survey, 1997). The goal of succession is to achieve organizational and
strategic renewal. Succession can be seen as a process rather than a single event. Family business
succession process has been defined as "the passing of the leadership baton from the founder-owner to
a successor who will either be a family member or a non-family member; that is, a professional
manager (Beckhard & Burke, 1983, p. 5). Management succession differs from family firm succession.
One difference is the intertwinement of ownership and management in family firms. This leads to a
different logic with respect to priorities. Succession is an aspect that every firm that wants to continue,
has to deal with when the current owner steps down. At some point in time every family firm will have
to deal with this problem. Therefore, the succession is a popular subject in the field of family firm
research.
The succession process consists of several phases that contain elements of initiation/preparation phase,
integration phase, joint management phase and retirement of the incumbent (Cadieux, Lorrain, &
Hugron, 2002). The transition takes place between those phases, and is finished when the incumbent is
retired and the succession process is completed.
The succession process has different phases. The incumbent can choose to retire as soon as the
succession process starts, or he or she can continue to work in the firm. When this is done the transition
of leadership occurs at a later stadium. Some companies choose to incorporate the successor at an early
stage of the process whereas others just transfer the business when the incumbent retires. Whether he
successor will be present in the firm depends on the wishes of the incumbent and the family. The
process itself consists of some different characteristics for example: length of the process, ease of the
transition, willingness to relinquish management, authority and control or the use of family business
consultants (Morris, Williams, & Nel, 1996). The timing of this process has everything to do with
succession planning. Literature suggest that succession planning is necessary for an effective succession
process, while others argue that it is not that effective (Rothwell, 2010).
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The important stakeholders that are involved in this process are the incumbent, the successor and the
family members (Sharma, Chrisman, & Chua, 2003). The role each stakeholder plays in the process
differs per firm.
2.4.1 Context of the succession process

There has been a lot of research done on he theory of the succession process. Different researchers
have different views on what the succession process is about. A table of the aspects that where most
researched on the topic of succession planning can be found in appendix 1. The study of Le Breton-
Miller, Miller& Steier (2004) is based on an extensive literature review to get a better understanding of
family firm succession. The study found 7 aspects which where mentioned the most in the field of
family firm succession. As stated before the succession process involves three important stakeholders.
Because each stakeholder plays a different part in the succession process shall each stakeholder be
addressed separately. Because the market a company is active in plays a part in the succession process,
the business influences will also be addressed.
I. Incumbent
The incumbent is an important stakeholder in the succession process. The process starts with the
incumbents wish to resign over time. The study of Ward (Ward, 1987) claims that the business owner,
the incumbent, is the most important stakeholder in the succession process. Factors that influence the
succession process are the relationship between the incumbent and the successor, what the relationship
is and what the quality of this relationship is. Also, the motivation of the incumbent has an influence on
the succession process. The personality and needs of the incumbent can also have influence on the
process (Handler W. C., 1990). Literature indicates that the succession process is largely under control of
the incumbent. Therefore, this stakeholder has a considerable amount of power to influence the
process (Pitcher, Chreim, & Kisfalvi, 2000). The incumbent has mostly enough legitimacy and power
within the firm and the family to remain owner as long he or she desires. The succession process is not
only an economic business transition, also an emotional transition. Individual characteristics of the
incumbent, for example, the incumbents bond to the business and the related personal, emotional and
development factors have influence on the succession process (Handler & Kram, 1988). Examples of
those personal factors could be the health or future plans of the incumbent. The incumbent can be
resistant to change or not willing to hand over the business. All these emotional aspects combined leads
16


us to the single largest problem in family firm succession; the incumbents inability to let go (Davis &
Tagiuri, 1989).
II. Successor
The next stakeholder that is part of the succession process is the successor. This person is going to take
over the business during the succession process. Without the successor, succession cannot take place.
When a father decides to retire or suddenly had to step aside, the oldest son or daughter has to take
over the business. While it may not be the norm anymore in the agricultural sector it still is. The
successors are often family members who take over the firm (Rabobank, 2016).
Literature shows that the motivation and the abilities of the successor are important for the succession
process (Barach & Gantisky, 1995; Chrisman, Chua, & Sharma, 1998). The characteristics and
motivations of a successor have influence on which person to choose as a successor and how the
process thereafter develops. Not only the motivation and abilities of the successor matter also the
career development, work experience, formal education level and training program are important
factors to consider (Morris M. H., Williams, Allen, & Avila, 1997). Especially when 45% of all business
failures in the U.S. were due to incompetent new management (McGivern, 1978). Also, the level of
apprenticeship can influence the succession process. The level of knowledge that can be passed on for
instance can differ if the incumbent and the successor did not practice an apprenticeship (Cabrera-
Surez, De Sa-Prez, & Garca-Almeida, 2001). Individual factors of the successor such as gender or age
can also influence the process.
III. Family members

Not only the incumbent and the successor are involved in the succession process within a family firm,
also the family members play a part in this process. Therefore, family members will be a stakeholder in
the succession process. As is stated before, family firms differ from non-family firms as is also the case
with the succession process. Family firm succession has to consider that the interest of the family is
involved in the process. Family dynamics and relationships play an important factor in the succession
process because they involve the most valuable asset, the family firm. The dynamics in the family can
change the whole process. Different dynamics like the intensity of collaboration among family members
or the harmony within the family can have different impacts on the process (Dyer, 1986). Examples of
family dynamics are the relationship within the family, the number of relatives involved in the family
17


business and willingness of the senior generation to hand over the business (Venter, Boshoff, & Maas,
2005). The study of Davis (1983) agrees that family dynamics such as power, communication, dynamics,
trust and level of tightness within the family firm influence the succession process.
IV. Business and environmental factors

Not only the stakeholders are valuable for the process also external factors like business or
environmental factors influence the process. Different environments have different effects on the
succession process. Also, the industry the business finds itself in has a different impact on the succession
process. A business within a successful industry will have an easier going succession process compared
to a business that operates in an unprofitable industry. The degree of stability and the opportunity to
grow are n important part of the external factors. Another example is the level of specialization which is
needed to take over the firm. When there is a high level of knowledge and specialization required to
take over the business the process of transferring the business will also be more difficult (Handler &
Kram, 1988). All these factors have to do with the characteristics of the family firm, for example, the size
of the business, sales volume, assets of the firm and number of employees (Calus, Van Huylenbroeck, &
Van Lierde, 2008; Gibson & Cassar, 2002).
The previous section explained that there is much research done on the succession process and that
there are many theories and models that examine the process. As is seen the succession process can
differ in many ways. Looking at frequently cited articles in the field of family firms succession, some
similarities can be found. The article of Le Breton-Miller et al. (2004) combined the variables mentioned
in literature the most. The models of Handler et al. (1988) and Venter et al. (2005) are well known in the
field of family firm succession. These models also look at the majority of the frequently mentioned
variables of family firm succession. The models of Handler et al. (1988) and Venter et al. (2005) can be
found in appendix 2and 3. Most studies focus only on the influences of the stakeholders and the
process, but not so much on the business or environmental factors that influence the succession
process. Which are just as important or sometimes maybe even more important for the succession
process to be effective. Therefore, this study will use the combining elements described before to
examine the succession process. The contexts will be called: incumbent/successor influences, family
influences and business influences. The conceptual model will therefore be adjusted to the following
figure.
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Figure 2 Extended Conceptual Model
2.5 Conclusion
The previous section dealt with the research question How can the succession process within family
firms differ?. The concept of a family firm is described. Agricultural family firm will be described as: The
firms that are researched have the characteristics of a normal family firm, are active in the agricultural
sector and the involvement and commitment of a family member or devoted outsider or employee to
keep the business going. The definition of the succession process is given, combined with the
explanation of the stakeholders and the process itself. Combining all this theory an extended conceptual
model is made which explains the aspects of the succession process. Based on the literature given
before it can be stated that each transition is different based on the characteristics that influence the
process. In this study, the contexts of the succession process are: incumbent/successor influences,
family influences and business influences. How these contexts influence the level of satisfaction with the
transition will be explained through the next research question.
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Chapter 3 Theoretical background satisfaction with the transition
3.1 Introduction
The previous chapter explained what the succession process was. Because of a wide range of literature
available theory about family firm succession is combined. This led to three contexts of the succession
process that influence the level of satisfaction with the transition. This section will give an answer to the
second research question: How does the succession process within agricultural family firms influence
the level of satisfaction with the transition?. First the influences of the succession process are going to
be elaborated further. After that the theory about satisfaction with the succession process will be
explained. Concluding the relationship between the succession process and level of satisfaction with the
transition will be explained, which will answer the second research question.
3.2 Influences of the succession process

As mentioned before three influences of the succession process were established namely:
incumbent/successor influences, family influences and business influences. Each of these influences will
be explained in more detailed.
I. Incumbent/Successor influences
The incumbent/successor influences have to do with the original owner, the incumbent, and the new
owner who is going to take over the business, the successor. Characteristics that qualify as
incumbent/successor influences are: the relationship between the incumbent and the successor, the
incumbents motivation, personality and needs. The incumbents motivation is closely related to the
planning of the succession process. When the incumbent is resistant to change, it is more likely that the
planning has not started which has an impact on the success of the succession later on. Therefore, the
need for a succession plan falls under the incumbent/successor influences context. The kind of
successor (family or non-family member) and the timing of the process can influence the process. Who
is going to be the successor and when this takes place differs per succession. As for the successor: the
motivation, abilities, level of apprenticeship and career development play a big role in this context. The
individual characteristics that are part of this aspect are age or gender of the successor.
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II. Family influences
Not only the incumbent and the successor have impact on the succession process also the family is very
important. The harmony inside the family can influence the process a lot. Also, the relationship within
the family and family dynamics plays a difference in the succession process. The influences that
distinguish a family firm from a non-family firm are stated in the literature as: familiness. Familiness can
be described as a unique bundle of resources and capabilities that are distinctive to a business because
of family interaction between the family, its individual members, and the business in the form of
knowledge, social capital, and intentional trust (Habbershon & WIlliams, 1999, p. 11).
III. Business influences

Business influences are characteristics that involve firm characteristics and environment characteristics.
For example, the size of the business, sales volume, assets of the firm, the number of employees, goal of
the firm or the industry the firm is operating in (Calus et al., 2008). The level of specialisation plays a big
part in the transformation process. If there is a high level of specialisation needed to take over the firm,
the transition will be more difficult. Which also counts for the amount of capital the successor has to
bring in. If the successor has to bring in a relatively small amount of capital, the succession process will
go more smoothly instead of when the successor has to bring in a great amount of capital. All
characteristics have a different influence on the outcome of the succession process.
3.3 Satisfaction with the transition

In a professionally managed firm with distributed ownership, financial performance may be the number
one goal. Instead of success in management succession, which is implied when the firm is being taken
over (Pitcher et al. 2000). Within family firms successfully going through the succession process is not
always understandable. Because family firms value financial and non-financial goals, making a profit
does not always come as the number one priority (McConaughy et al. 2001). At times, family firms may
prioritize maintaining good family relationships instead of profitability. Therefore, understanding the
factors that influence the satisfaction with the transition from the perspectives of the stakeholders is
important. Because lack of satisfaction with the transition may influence the family relationships and
therefore also the profitability of the firm. Studying satisfaction with the transition is important because
of its direct impact on the relationships among family members, which is an important factor within
family firms.
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The research about family firm succession frequently tries to measure if the firm survives to the next
generation. It is stated that 30% of the businesses do not survive the transition the second generation
(MassMutual, 1993). In this context, it is worth mentioning that of those 30% many family businesses
specifically opt to not pass the business on to the next generation. Alternatively, when evaluating the
succession process, the quality of the experience and the effectiveness of the succession should be
measured (Handler W. C., 1990). Quality is a measurement of how the involved family members
personally experience the process. Effectiveness is related to how others judge the outcome of the
transition. Examples of issues here include organizational performance indicators and satisfaction levels
experienced by the next-generation managers.
Satisfaction is a concept what can be measured in different ways, one way to measure the level of
satisfaction is through the discrepancy theory. Satisfaction is considered to be the difference between
what is expected and what is experienced (Fishbein & Ajzen, 2010). The discrepancy theory measures
this difference. The more the experienced outcomes differ from the expected outcome the more
unsatisfied you are. So therefore when the difference between the expected outcome and experienced
outcome differs the more unsatisfied you are.
The goal of the succession process is to smoothly transfer the business from one generation to the next
one. When the family firm has gone successfully through the succession process the question remains:
are the stakeholders satisfied with the transition. The dependent variable of this study will be the level
of satisfaction with the transition. The level of satisfaction is defined by how effective or successful a
transition was. Therefore, when the transition was effective or successful there will be a high level of
satisfaction.
The most common definitions of successful succession are:
The subsequent positive performance of the firm and ultimate viability of the business (Le Breton-
Miller et al., 2004);
The satisfaction of stakeholders with the succession process (Cabrera-Surez et al., 2001; Dyer,
1986; Handler, 1990; Morris et al., 1997; Sharma, Chrisman, Pablo, & Chua, 2001).
Because family firms do not always prioritize profits, the second definition is more suited to express a
successful succession. So, when the succession is successful the level of satisfaction is higher and vice
versa.
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Now that the concept of satisfaction is explained the complete conceptual model can be found in figure
4 bellow.
Figure 3 Complete conceptual model
3.4 Relationship between the succession process and the level of satisfaction with the
transition
Now that the contexts of the succession process are described and the definition of a successful
succession, the relationship between both variables can be examined. As is mentioned before different
characteristics of the succession process have different impacts on the degree of successfulness of the
succession process and therefore on the level of satisfaction with the transition. Based on the theory
explained before, for each context of the succession process it will be examined how it influences the
level of satisfaction with the transition.
I. Incumbent/successor influences
The incumbents motivation, personality and needs influence the survival of the firm. For the successor,
his or her motivation, abilities, career development, work experience, formal education level, training
23


program and level of apprenticeship have influence on the level of satisfaction with the transition. Both
parties are involved in the succession planning and relationship between them.
Incumbents motivation
The succession process all starts with when the incumbent thinks about retiring and stepping down.
Mostly the incumbent has been the owner of the family firm for a great deal of his or her life. Therefore,
stepping down is not an easy process. The incumbent must face normal fears such as losing control and
power. Also, his or her identity and statue in the community (Potts, Schoen, Engel, & Hulme, 2001).
These psychological issues conclude that the inability to let go of the business is the most cited obstacle
to effective succession (Sharma et al, 2001). These obstacles influence the level of satisfaction with the
transition. The less effective the succession will be the less satisfied stakeholders will be.
Incumbents personality and needs

A vital characteristic of the incumbent is the capacity to trust and share. Traits incumbent needs to
process for successful succession processes are a mentoring, cooperative attitude and openness to new
ideas (Barach & Gantisky, 1995). Traits that have a negative influence on the success of succession
process are a tendency to mistrust, to control every detail or to be negatively aggressive.
Successors motivation and abilities

A fully committed successor is very important for the survival of the family firm. The more the
opportunities within the family firm match with a successors personal needs, identity and life stage, the
more likely the succession process will be positive (Handler W. C., 1992). The successor has to be
personally invested, enthusiastic and feel responsible for the firm in order to achieve a successful
succession process. The proven skills, performance and experience have a positive effect on gaining the
trust of the incumbent. This in return has a positive influence on the succession process.
Successors Career development

As for the career development, early exposure to the business helps the successor to become familiar
with the company, values and its employees. It helps the successor to build relationships and credibility
and to prove them. Effective successors have had substantially more years of experience within the firm
which improves the process (Goldberg, 1996). Many successors had rich experiences at other
24


companies. Which helps them to develop a, knowledge base, sense of identity, self-confidence and
credibility (Dyer, 1986).
Successors Education level

The study of Morris et al. (1997) found that the education level of the successor has a positive influence
on the survival of the family firm. Goldberg (1996) found that effective successors held a college degree.
The college or technical degree is the first barrier a potential successor has to overcome.
Successors Level of apprenticeship

Apprenticeship is a training used by family businesses. There are two parties the mentor, most of the
time the incumbent, and the apprentice, the successor. Both parties work closely together to transfer
knowledge which often starts at home at the dining table, build up during summer jobs and continue
through a career in the family firm (Dyer, 1986). This apprenticeship is valuable for the succession
process because there are a set of values, know-how, knowledge and a network that has a positive
influence on the survival of the family firm.
Relationship between incumbent and successor

The quality of the relationship between incumbent and successor has a positive influence on the success
of the process. A relationship base on mutual trust and respect makes individuals feel more supported
and recognized (Cabrera-Sure et al., 2001).
Succession planning
Succession planning has been found effective when it comes to the transition from incumbent to
successor. A succession plan that has been established in the early stages of the succession process has
been found more effective, because both parties can be involved at an early stage (Harveston, Davis, &
Lyden, 1997). The succession planning is only effective if the plans are being recorded, discussed and
updated. Theory shows that families who actively start succession planning communicate more about
their needs, desires and future possibilities which smooths the transition (Weigel & Weigel, 1990). This
also can limit the number of family conflicts.
II. Family influences

Family dynamics and relationships have been found to be effective on the succession process. Family
harmony, or the lack of family conflicts, are of positive influence on the effectiveness of the succession
25


(Venter et al., 2005). Stress within the family has been proven to have a negative effect on the
succession process, which is negative for the survival of the firm. Family harmony helps to ensure
greater trust, mutual understanding and knowledge among the participants. This harmony helps to
create a shared vision which has a positive influence on the relationship of the incumbent and the
successor. Problems within the family with regards to succession can be seen as the number one cause
to unsuccessful succession (Cabrera-Surez, et al., 2001).
III. Business influences

Industry
Firms are more likely to survive and go through the process of succession successfully when the business
is financially and organizationally stable. When the firm has marginal revenue or profit the business is a
source of tension and the level of enthusiasm to join will be lower (Lea, 1991). Firms in dynamic,
complex environments require more organic structures, where firms in stable environments could rely
more on bureaucratic structure for control. When there are few industry requirements and professional
requirements the likelihood of survival of the firm will increase.
Capital investment
According to Gale (2003) barriers for the succession process to go smoothly and therefore for the
survival of the firm are structural changes, increasing capital requirements and low expected rates of
return. When a firm operates in a simple environment survival will be more likely.
3.4 Conclusion
The previous section explained how different contexts of the succession process have an influence on
the level of satisfaction with the transition. To get a clearer view a visual representation of the findings
can be found in figure 5 which is made by the researcher for this thesis. As can be seen in figure 5, there
are factors of the succession process that contribute to the level of satisfaction with the transition in a
positive and negative way. A more elaborate table with references can be found in appendix 4.
26


Figure 4 Characteristics of the succession process that influence the level of satisfaction with the transition
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Chapter 4 Methodology
4.1 Introduction
This chapter will explain how the research in this study will be carried out. The research design, data
collection, data analysis, validity and reliability are going to be explained below. More insight is given in
the methods which are used to gather empirical data.
4.2 Research design

The concept that this master thesis is going to investigate is the succession process. Since 1960s
management succession has been a subject of academic research (Kesner & Sebora, 1994). The process
of succession approximately occupies one-third of the family business literature (Sharma et al., 2003)
The research that will be done in the master thesis will be of a qualitative form. Or more specifically
stated a theory supported inductive research will be conducted. Because a specific problem from the
corporate world is given qualitative research is best suited for this master thesis. When making the
connection between a corporate problem and the academic research qualitative research is best used.
Qualitative research will be done to test the results in a practical environment. The time horizon is a
very important aspect of the research process. The time horizon that will be given for this research is
five months. In this period, it is possible to get a better understanding of the succession problems within
the family firms and how to address them.
4.2 Data collection and analysis

Different methods of sampling can be used to gather data for a thesis. Sampling strategies are divided in
probability and non-probability sampling. The big difference is that in probability sampling everybody
has a chance of being selected, and results are more likely to accurately reflect the entire population.
Non-probability sampling represents a group of sampling techniques that help researchers to select
units from a population that they are interested in studying (Sekaran & Bougie, 2013). In this way, the
researcher can select units from a population that are relevant for their research. Therefore, non-
probability sampling will be used in this thesis. To be more specific, purposive sampling is the most
effective way of sampling in this research. This is a sampling technique in which the researcher relies on
his or her own judgement when choosing members of population to participate in the study (Sekaran &
Bougie, 2013). The purposive sampling methods that are used in the thesis are namely: typical case
28


sampling and homogeneous sampling. Typical case sampling includes an illustrative sample which will be
representative for the topic of interest. In homogeneous sampling the sample consists of subjects with
minimum variation to get more in depth results about specific characteristics you want to study.
4.2.1 Kind of data and which data

The data that will be collected is primary data. Primary data is data gathered by the researcher itself and
is collected for the purpose of this study. The primary data that will be collected are interviews that are
held with family firms in the food and agricultural sector that are in the last stadium of the succession
process or have gone through the succession process and found a successor already. The interviews will
be with incumbents and successors of the firm. Incumbents and successors will be interviewed
separately to avoid biases. By combining those groups of people a best practice can be formulated.
Because the privacy of the respondents has to be valued the names of the companies and respondents
are not mentioned in this study. The anonymity of the respondents increases the reliability, because
respondents can freely answer and give honest answers to the questions. The researcher was prepared
before each interview and recorded every interview to avoid researcher bias, this increases the
reliability. For this study 7 companies where interviewed. The incumbent and successor of 5 companies
are both interviewed. From the other 2 companies only the successors are interviewed. Because the
incumbents of those companies are well-aged the successor is asked about the expectations and level of
satisfaction of those incumbents. A representation of the respondents can be found in table x.
Company Respondent
1 Incumbent & Successor
4 Successor
7 Successor
Total 12 Respondents
Table 2 Overview respondents
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4.2.2 How to collect data
The primary data will be conducted through interviews with incumbents and successors of the firm. The
respondents were asked to participate by email. The letter they received can be found in appendix 5.
The list with interview questions translated in Dutch and English can be found in appendix 6. The
observations that are done during the interviews can also be relevant as data. The relevant articles that
are useful for this research will be collected through the University library and Google Scholar.
4.2.3 Access to data

Because the Rabobank has a lot of clients who are family firms in the food and agricultural sector, there
will be plenty of family firm owners to interview. The Rabobank will give the researcher permission to
contact their clients and to conduct interviews. My supervisor of the Rabobank John Hagers has a lot of
contacts in this business and can also provide the experts on family firm succession working for the
Rabobank.
4.2.4 Data analysis

The data from the interviews will be analyzed through several steps. After the interviews are transcribed
the data analysis can start. An example of a transcribed interview can be found in appendix 7. First of
all, several categories will be defined from the conceptual model based on theory. This will lead to a
deduction in several main categories and from that data will be divided in several subcategories.
Secondly, the data from the interviews will be categorized in one of these subcategories. A coding
scheme will be used to do that. After this is done the most causal relationships can found which will
result in a meaningful discussion. An example of such a coding scheme can be found in appendix 8. After
the interviews were conducted and the transcripts were written, the transcript was sent to the
respondent to check if the transcripts correspond with the given answers which increases the internal
validity. Because this chapter explains how the research is conducted, the questionnaire is enclosed
together with the raw data which can result in a higher reliability. Another researcher can conduct the
same research and get the same results.
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Chapter 5 Results
5.1 introduction
To get a better understanding about the succession process within agricultural family firms a series of 12
interviews were conducted with 7 different firms which are in the last stadium of the succession process
or have already gone through the process of succession. Of those 7 firms, 6 firms were handed over
from father to son. For one firm the succession process took place outside the family. Semi-structured
interviews were conducted with the incumbent and/or the successor of the firms. The translated
interviews can be found in appendix 6. The interviews contained 4 components namely: the process of
succession, the incumbent or successor influences, family influences and advice. Because the problem
statement states, how different aspects influence satisfaction, a representation of the results on
satisfaction is also given. The 4 concepts will be discussed in the following chapter.
5.2 The process of succession

The incumbent has done the job his whole life and at some point has to retire because of old age. To the
question: why did you look for a successor? All incumbents answers were related to each other. They all
had a family member that has a passion for the agricultural firm and loves to take over the business.
Therefore, they had not need to search for an incumbent and were willing to hand over the business.
One quote of one of the incumbents hit the nail on the head. He stated:
You dont look for a successor, he was already there. A successor is born. It is in your blood. If you look at
my son, as long as I can remember he told me he wanted to become a farmer. Its in his blood. Also when
the times were rough he still wanted to become a farmer, so why shouldnt you hand it over to your own
son?
The motivation for the successors is related to the answers the incumbents gave to this question.
Almost all successors have been living, learning and working on the farm since the day they were born.
They fell in love with the profession over time and are willing to spend the rest of their lives in this
business. Besides that most successors are so involved with the profession they all state to have a
passion for it which is their main driver to take over the business. Therefore it was never an obligation
for the successors to follow in their fathers footsteps because it never felt forced for them. One quote
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from a successor that contributes to this statement is:
I never felt obligated to take over the business, it was always my free choice. When I would prefer to do
something else and not take over the business then my parents would still support me. I mean my father
would love for me to do it but it was always my own choice.
If the succession takes place within the family, the succession process itself starts when the successor
has finished high school or finished his agricultural education. Then they transform the firm from a
private company or one-man business to an association or a partnership. By doing this the successor
slowly gains more shares and is able to build capital. Not only the capital transfers from the incumbent
to the successor also the responsibility is being transferred. Because the successors in this case were
sons, they were all involved in the firm before they became owner completely. From the interviews can
be seen that both successor and incumbent agree that it is useful that the successor has been active in
the firm and part of the succession process beforehand. Mainly because the successor knows the
company inside out and does not have to learn as much as an outsider should. For the successor, this
also brings a sense of confidence because the company is transferred to ones own son. The statement
from one of the incumbents contributes to these findings. His answer to the question: Would you prefer
for a family member or non-family member to take over the business? Is as follows:
Family member definitely, its so easy to transfer the business to someone you know so well financially
but also emotionally. When you sell the firm to an outsider, you dont make that much more profit
because you have to pay taxes. And who knows, maybe a grandchild can take over the business when he
or she is older, how wonderful would that be. Youve built something from scratch, which is quite an
accomplishment, it would be a shame if it doesnt stay in the family.
Based on the answers of the incumbents and successors the planning of the succession process is just a
formality, because the families know that their son want to take over the business way before. All
respondents indicate that they are not aware that they are planning because conversations about the
succession process are being held within the family. When the transition of the business is done, the
families start the succession process slowly. This process of transferring the business takes on average 5
years. The incumbent slowly starts to work less and therefore hands over the routine farm management
to the successor. When the process is finished and the successor is in charge, some incumbents chose to
completely disassociate from the farm which for a lot of incumbents is a hard thing to do. They find it
32


difficult to let go of all control and try to stay involved by working on the farm. The reason they do this is
because they were so involved with their business for their whole career that they have a small world
outside the farm and do not want to spend their days doing something different. One respondents
answer to the question: Are you still active in the firm? And if so why? was:
Yes I am, Im not going to spend my time doing nothing. Maybe I work less hours, but it is still your
profession and your passion. The farmers life is a profession that takes up your whole life and all your
energy. So it will still be an interest of yours. Its not something that you easily let go of.
Based on the answers given by the incumbents, it indicates that when the incumbent has a hard time
letting go of the firm the satisfaction is also high.
Now that it is seen what the succession process in practice looks like the respondents were asked to
name the best and worst aspects about their succession process. Obstacles of the process could be
resolved for future companies that are starting the process of succession. The positive aspects drive the
succession to a successful process. For the firms that transfer the firm inside the family the most positive
aspect of succession was that the firm stays within the family. The research before shows that family
firms value a higher priority on continuity and the combination of financial and non/financial goals
which implies that they find it very important that the firm stays within the family. Respondents
answered that they find it easy that the firm is transferred to someone you know so well and is a blood
relative of yours. Emotionally seen they find it easier to transfer the firm to a family member than a non-
family member.
The second positive aspect of the succession process is the duration of the process. 5 of the 7
companies have gone through the succession process in a relatively slow manner. They have taken their
time and gone through the process in 5 years or more. By taking their time they indicate that they found
it helpful to slowly transfer the business and get used to the changes. Therefore, all parties can get used
to the idea and communicate beforehand if there are any problems.
Another positive aspect that half of them found is useful that they had an open relationship with their
external parties, for instance the bank or the accountant. They found it helpful that they could always
call or email them with questions which made them feel secure.
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Off course not everything about the succession process can be easy and successful, there are also some
obstacles. All respondents that transferred the business within the family shared the same obstacle
namely; the pressure on the family harmony. Some had to deal with it more than others but all of them
found themselves in that position. Because the family firm is taken over by a family member all other
family members are automatically involved. In every transition inside the family a conversation has to be
entered with all family members. If they agree that, in most cases the oldest son takes over the family
firm. Not all family members think this is the best decision. Because they expect to receive a part of the
heritage which now will be less because most family capital will stay inside the firm. This disharmony of
capital can cause a lot of tension inside a family.
Another obstacle which is partly similar to the obstacle named before has to do with the financial side of
the process. When an incumbent would sell his company to an outsider the value of the company would
be much higher. Now when the family transfers the business to a family member, the transfer price will
be lower because the son can usually not pay the market price. Also the parents allow the son to take
over the business for a lower price because he is a family member. This derives from this statement:
Well, its all a part of the willingness from the parents to transfer the business for a much lower price to a
family member, instead of selling it to an outsider for the market value. Because they find it so important
that the firm stays within the family and that they can do their son a favour.
5.3. Incumbent
The motivation of the incumbent is the starting point of the succession process. In the section before is
seen what the incumbent motivates to start the business. Because the process takes many years and a
lot of effort from the incumbent and the successor the relationship between them can change over
time. All incumbents indicate that the relationship changes but only in a positive way. Some of them
experience some tension because they are now more involved with each others lives. Also, because
opinions are now more expressed and decisions have to be made together as before had to be made by
themselves. Even the incumbent who handed their business over to an outsider experienced a change in
relationship. Because their lives are intertwined when the succession process is being followed, they
experience the same troubles as inter-family succession.
34


These tensions also have to do with the fact that most incumbents find it difficult to resign completely.
Especially when the firm stays inside the family all incumbents indicate that they have difficulties with
giving up control completely. Mainly because they have been involved with the firm for almost their
whole lifetime, as is stated before. Also because they enjoy it too much to let go of it completely. For
them working on the farm is a way of helping their successor out and they can still be a part of it.
The incumbents indicate that they are looking for someone who has the same mind-set and working
attitude. The successor has to be passionate about the profession. There has to be a connection
between the incumbent and successor. Also they find it important that the successor has experience in
the field of agricultural, through working experiences or an agricultural background. Because these traits
can be found in a son or daughter the incumbent prefers for a family member to take over the firm. The
statement below from this respondent contributes to these findings.
You look for someone who thinks the same as you, who wants to go in the same direction. You never
know if there is a connection between you and the successor, which is very important if you want to hand
over the business.
5.4. Successor
The other important party involved in the succession process is the successor. Without the successor,
the process cannot be completed successfully. As for the relationship with the incumbent they all
indicate the same findings as the incumbents. They encounter the same difficulties when working
together but overall agree that their relationships are stable and good.
All successors have a background in agricultural, either by past work experience or an agricultural
background. They all indicate that an agricultural background is essential when taking over an
agricultural firm. Therefore, the successors of all inter-family transitions have been working on the farm
for their whole lives. Also the transition outside the family indicate that he worked 3 years on the farm
prior to starting the transition. Therefore, it is important to gain experience in practice before
transferring the business. Successors with an agricultural education indicate that it is not necessary to
attend an agricultural education but it makes the transition easier over time.
Because successors are active in the firm before the actual transition takes place, the responsibility
slowly transfers from the incumbent to the successor. The successors therefore can institute changes.
35


All successors indicate not wanting to change major things but keep going in the same way the
incumbent did.
5.5. Family influences

When there is an inter-family transition not only the incumbent and the successor are important but
also the family members. All respondents indicate to actively involve all direct family members inside
the succession process. The respondents stress that it is important to involve all family direct family
members from the beginning to prevent misunderstandings. Open communication can help to keep the
family harmony. The statement from one of the respondents contributes to these findings:
My mom is really involved because shes also part of the partnership off course. My sister has her own
life in Tilburg which she loves but she also keeps interest in the family business. She never wants to work
on the farm but she helps when needed. Business wise she isnt that involved, but emotionally for sure.
All respondents indicate that they do not encounter problems inside the family, mainly because they all
communicate and involve all family members in the process. They are aware that problems within the
family can delay and make it difficult for the succession process to continue.
An overview of the results can be found in table 1.
Respondent Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7

Overall satisfaction Moderate High High High High Moderate Low
Stepping down for incumbent Easy Difficult Difficult Easy Moderate Easy Moderate
Firm stays within the family Important Important Important Important Important Not important Not important
Succession planning Early Early Early Early Early Late Late
Career development successor HAS MAS HAS MAS HAS MAS No agricultural education
Level of apprenticeship High High High High High High Low
Relationship incumbent/successor Good Good Good Good Good Good No relationship
Family involvement High Moderate High High High No No
Problems No Some No No No Some Some
Table 3 Overview most important findings interviews
5.6 Advice
Because every firm gets help from external parties it is useful to get an understanding about the
expectations of this advice. All respondents indicate that external parties advised them in the process.
36


These parties are mostly the accountant and the bank. To the question why they requested advise from
external parties one respondent stated:
To gain more knowledge on the field of succession. We dont know everything especially on the business
side so its useful to get some help from someone who has a lot of experience in the field. Its sometimes
also reassuring to have someone who confirms your choices and guides you when needed.
Which is in line with the other respondents answers.
The external party guides the company through the succession process. They have meetings once or
twice a year about the succession. When the succession is in its last phase the external party finalizes
the process with all parties such as the incumbent, successor, family members and the bank. It is their
job to manage the succession process till it is successful. From the 12 respondents 10 of them indicate to
be positive about the advice external parties give. Although this advice is mainly given by the
accountant. Especially for the bank there are some opportunities. Even though almost all respondents
are positive they have some points of improvement for external parties. Because the succession process
consists of a financial and emotional part they find it important that both parts are equally discussed.
They find it important to have a connection with an external party and a good and trustworthy
relationship before they enter the process of transition. An answer to the question whether they find it
important to have a relationship with an external party adds to the statement made before:
Yes of course it is important to have a good relationship with an external party. First they have to know
my parents well, that is important then they have to have knowledge on the company because otherwise
they cant give proper advice. If you would work together with a party that is new it would be way more
difficult to work together because you dont have that connection yet and they dont know your firm
either.
The respondents indicate that the financial part has to be the first priority of the external party, because
if the process cannot be finalized with the bank there is no point even transferring. So the main goal for
the external party is to make sure the succession process can take place, the incumbent has enough
pension and the successor can take over the firm for a fair price. To do so the external party has to have
a lot of knowledge of that company so it eases the process when there is already a long-term
relationship in place. When this is dealt with, there is still the emotional part. Because external parties
37


have more experience on this subject the companies expect them to guide them through the process
and ask the difficult questions when needed.
5.7. Satisfaction
Satisfaction is measured through the satisfaction of the incumbent, the satisfaction of the successor and
the satisfaction with the performance. This is done by answering questions about the satisfaction of the
succession process, the financial state of the firm and if they are satisfied with that and the expectations
and if they have met. The table representing an overview of the respondents satisfaction with
succession process can be found in appendix 9. Satisfaction is measured through 3 concepts: the
satisfaction of the incumbent, the satisfaction of the successor and the satisfaction with the
performance. The respondents answered questions about how they felt about the transition, how
satisfied they were and how it was going financially. They had to rate their level of satisfaction from very
low, low, moderate, high to very high. These indications compared to their answers resulted in these
levels of satisfaction. The ratings very low to very high responded with a number between -2 and 2.. -2
stands for very low where 2 stands for very high. Which can result to the overall satisfaction. Table 4
gives an overview of the results regarding those concepts of satisfaction.

Satisfaction incumbnet Moderate High High Very high High Moderate Moderate
Satisfaction successor Moderate High High Very high High Moderate Moderate
Satisfaction performance High High Very High Moderate High High Very Low
Table 4 Satisfaction about the succession process
Both incumbent and successor shared the same ideas about the satisfaction of the process inside each
company. They agreed also on the performance of the firm, therefore the results of the incumbents and
successor are presented combined as company satisfaction. The positive and negative aspects
mentioned before, contribute to the satisfaction, the general satisfaction about the process in
particular.
The business influences of the conceptual model are measured through the questions about
satisfaction, in particular financial satisfaction. Table 5 represents the answers to the question how it
was going financially.
38


Company Company Company Company Company Company Company
Respondent 1 2 3 4 5 6 7
Financial Very
satisfaction High High High Moderate High High Low
Table 5 Financial satisfaction
The respondents were asked to express if they were happy with the given advice. Because they all
where all advised by external parties their expectations were asked, and furthermore if their
expectations had met. By doing this the satisfaction about the advice can be measured. The results from
these questions can be found in table 6.

wel wel niet niet wel niet wel
Expectations have met Yes Yes No No Yes No Yes
Table 6 Expectations external advice
39


Chapter 6 Conclusion
6.1 Introduction
In this concluding chapter, the research question: how can the succession process within the agricultural
family firm influence the level of satisfaction with the transition? will be answered. By combining the
theoretical background and the results from the empirical data, an answer to the problem statement
will be formulated. The discussion will be given in chapter 6.2. Followed by a conclusion combined with
implications in chapter 6.3. Finally, the limitations and directions for future research will be given.
6.2. Discussion
The succession process differs in many ways; the phases and the influences of the stakeholders can
affect the level of satisfaction with the succession process. These findings are formed based on the
literature and methods used by one researcher. Therefore, other researchers can interpret this data in a
different way, or use different literature or methods to understand the same problem.
6.2.1 Succession process

The literature suggests that succession within agricultural family firms goes through the following
phases; initiation/preparation phase, integration phase, joint management phase and retirement of the
incumbent. This is the case when the succession takes place outside the family. The company whose
firm is transferred outside the family goes through the process as described before. The companies
whose firm are transferred inside the family also follow a succession process but it differs from the
companies who transfer the firm outside the family. Literature suggest that the succession process looks
the same which based from the results is not the case. The results show that inter-family succession
processes begin way before the initiation/preparation phase. Because most inter-family transformations
take place between parents and children (Rabobank, 2016), the process starts before this phase. The
children are born on the farm, are active on the farm as long as they can remember. So for them the
succession process begins as soon as they know that they want to take over the firm which is sometimes
at a very young age. According to the literature the succession process begins when the incumbent
starts looking for a successor which in most cases does not have to be done. The process is finished
when the incumbent retires and the successor oversees the company. Literature shows very clear
beginning and ending point to start this process. Results show that half of the incumbents are not
40


thinking about retiring ever. They want to work and be involved on the farm till their health allows it.
Results indicate that the agricultural business is a profession that you do your whole life which is
therefore difficult to end. Because of the passion all farmers have the succession process and the
retirement phase looks a bit different than within a normal succession.
Succession planning is one of the tools that helps families successfully transfer the business. Literature
suggest that succession planning can be useful when it is established in the early stages. Results show
that not all companies plan their succession, while others start 10 years prior to the succession. The
results are divided on the use of succession planning. Based on the findings the respondents only see
succession planning as a formality yet they are doing it without even noticing. They start the
conversations with successors at early ages but they are so informal and familiar that it is not seen as
planning which it is. Even though they do not see the importance of succession planning the ones who
start at an early stage are more successful and satisfied with the process.
When it comes to advice form external parties, the results show that it is very important to have a good
and trustworthy relationship with an external party. When there is a good relationship the successor
and incumbent go through the process more smoothly and therefore have a higher level of satisfaction.
The results also shows that the combination between financial and emotional guidance is very
important for the firms. When there is no balance between those parts the satisfaction will be lower.
6.2.2 Incumbent influences

From the results is seen that incumbents motivation to start the succession process is because of
retirement. From the results can be seen that incumbents who have a difficulty letting go of the
company are on average more satisfied with the process. The reason could be that they are more
involved also when the succession is completed and in that way can guide the successor. Family firms
have the characteristic of having a long-term view and wanting to realize financial and non-financial
goals. The results show that 5 out of 7 companies find it important that the firm stays within the family.
These characteristics also contribute to the level of satisfaction. Families who want their firm to stay in
the family are more satisfied than firms who do not find this important. This also has to do with the
involvement of all family members which creates combining goals. Theory is divided if succession
planning is important for the level of satisfaction. The succession process takes up on average 5 years in
this sample. Firms who early start to plan their transition are more satisfied with the succession process
41


then firms who start only a couple years beforehand. In this way, all parties can get used to the
transition on their own pace.
6.2.3. Successors influences

The career development of the successor has influence on the satisfaction, the results show that
successors with a secondary agricultural education (MAS) or higher agricultural education (HAS) are
more satisfied with the process. All incumbents and successors stress that an agricultural education is
important to understand basic farming techniques. Which is the same for the level of apprenticeship. If
successors are involved with the company from a young age, the succession process will be more
successful. Results show that when the successor has no background of farming or has not been active
on the farm it is really difficult to go through the succession process successfully. When the transition
takes place inside the family the successor and the incumbent mostly have a good relationship which is
in favour of the satisfaction. Results show that when there is no relationship between the incumbent
and the successor this is unfavourable for the succession process.
6.2.4 Family
When the succession process takes place, the biggest obstacle is keeping the family harmony. Families
ties can be pressured which does not contributes to the succession process. Problems can occur because
other family members want their fair share of the family capital which stays inside the family or when
the family is sold to an outsider when the family members do not want that. Results show that transfers
in which family members are involved are much more successful and therefore contribute to the overall
level of satisfaction. It also shows that when there are limited family involvement problems occur more
often. Problems within the family can be avoided when families communicate more. These different
findings show that every succession process is different, especially in agricultural firms, and how this
process can influence the level of satisfaction.
6.3 Conclusion and implications
6.3.1 Conclusion
This research wants to answer the problem statement: how can the succession process within the
agricultural family firm influence the level of satisfaction with the transition? To do so the two research
questions have to be answered. The first research question states: how can the succession process differ
42


within agricultural firms? Based on the literature review can be found that the succession process
consists of several phases namely; initiation/preparation phase, integration phase, joint management
phase and retirement of the incumbent. The stakeholders involved in this process are the incumbent,
the successor and the family members. The results contribute to those findings and confirm that the
succession process goes as follows. The phases and stakeholders are all different, not one succession
process is the same. For example, each phase can differ in importance or timeframe based on the
succession process. How each stakeholder experiences the process can also differ, so therefore cam
every succession process within agricultural family firms differ.
The second research question states: how does the succession process influence the level of satisfaction
with the transition? Based on the literature review can be stated that the concept of satisfaction can be
measured in many ways. Therefore is chosen to measure satisfaction through three concepts;
satisfaction of the successor, satisfaction of the incumbent and satisfaction with the performance. The
literature shows that the succession process can be influenced by different concepts. This research
examines the concepts of the incumbents motivation, incumbents personality and needs, successors
motivation and abilities, successors background, relationship between the incumbent and the
successor, succession planning and family influences. These concepts can be categorized as incumbents
influences, successors influences and family influences. How these concepts influence satisfaction is
found by conducting interviews with 12 agricultural family firms. The results show that 4 out of 7
companies are satisfied with the succession process. 2 Companies are moderate satisfied with the
process and 2 are not satisfied.
Based on the results and the discussion it can be stated that succession planning has a positive influence
on the level of satisfaction. When the incumbent finds it difficult leave the agricultural firm behind him,
it shows that they are more involved and passionate with the process which results to a higher level of
satisfaction. A good relationship between the successor and the incumbent is in favour of the succession
process, which also applies to the relationship between the incumbent or successor and the external
party. The biggest obstacle in agricultural family firm succession is the problems within the family, when
the family has less problems the harmony will remain which in results gives a higher level of satisfaction
with the process.
43


6.3.2 Implications
Results show that firms find it very important to have good and trustworthy relationship with external
parties. Now is seen that firms mostly cooperate with accountants. For the banking sector this could be
a huge opportunity, they have all the same knowledge as an accountant and know sometimes more of
the company yet are not the main advisor in the process. When the banking sector could establish long-
term relationships before the succession process takes place, could this be an advantage for them.
When the firm is already known and happy with the bank they shall involve the bank sooner than they
would now.
For the farmers who still have to go through the succession process, it is important to let the successors
free in their choice. When the succession takes place within the family it is important that the successor
does not feel the obligation to take over the firm. When this is the case the firm will probably not
survive probably. The only way the agricultural firm can operate is if the successor has the passion and
own motivation to do so. It is also important to keep the harmony within the family, because this is the
biggest obstacle in family firm succession. When there are conflicts within the family the succession shall
not go smoothly.
6.4 Limitations and directions for future research

The findings of this literature should be interpreted with caution based on the following limitations. The
main limitation of this study has to do with the definitions of the variables. The independent variable
has to do with agricultural family firms, which is really difficult to define. Research about family firms has
been done for ages, with different methods and done by different researchers who interpret a family
firm in their own ways. Therefore, there are a lot of definitions about family firms available. While some
definitions are very broad and elaborate focus others on one element of the family firm. Future
researchers could try to understand the field of family firms more by giving a definition that is applicable
for the majority of family firms. This research chose not to use an existing definition which is a risk. The
results and conclusion is therefore only relevant for research on family firms with the same elements of
the used definition.
The same applies for the definition of satisfaction. Satisfaction is a very broad subject that can be
interpreted in many ways. This research used different concepts of satisfaction to get a more in-depth
result. This does not mean that the results are applicable on all research done on family firm succession
44


on satisfaction. Only on the research that uses the same measures for the dependent variable
satisfaction, which are the level of satisfaction of the incumbent, the level of satisfaction of the
successor and the level of satisfaction with the performance. Satisfaction can be measured in many
ways for example through; Likert scales, real figures, effectiveness or perceived quality. Therefore, the
results can be different when researchers used different measuring methods. For future researchers, it
could be interesting to see if the results also apply when different measures are used.
As for the methods used in this research, the sample consisted of 12 companies who are all active in
Zeeland, The Netherlands which can bias the results. The results are therefore only applicable on
research done about the same target group. The sample also is based on family firms who are active in
the agricultural business, firms in other businesses may have different results regarding to satisfaction
on the succession process. It is useful to research what the differences are between provinces or
countries when it comes to succession.
45


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Appendices
Appendix 1 Variables in the Literature Mentioned the Most (Le Breton-Miller, Miller,
& Steier, 2004)
52


Appendix 2 Contributions to the Four perspectives to the Study of Resistance to
Succession in Family Firms (Handler & Kram, 1988)
53


Appendix 3 Theoretical Model of Successor-Related Factors That Influence Successful
Succession (Venter, Boshoff, & Maas, 2005)
54


Appendix 4 Characteristics of the succession process that influence the level of
satisfaction with the transition
55


Appendix 5 Letter respondents

56


Appendix 6 Interview questions Dutch and English
Interview Master thesis Pauline van de Voorde
Voor het af ronden van mijn Master Strategic Management aan de Universiteit van Tilburg doe ik
momenteel onderzoek naar bedrijfsopvolging binnen de agrarische sector. Hiervoor spreek ik met
verschillende bedrijven die met het opvolgingsprocess te maken hebben. Allereerst bedankt dat u
hiervoor tijd wilt vrijmaken.
Vraag 1 Opvolginsproces
Waarom zocht u een opvolger? / Waarom wilde u het bedrijf overnemen?
Als u het opvolgingsprocess mocht omschrijven, hoe zou dit er dan uitzien?
Bent u vroegtijdig begonnen met het plannen van het opvolginsprocess? Waarom wel/niet?
Is de opvolger vanaf het begin betrokken geweest bij het opvolgingsproces? Was dit volgens u nuttig? En
waarom?
Bent u/uw opvolger nu nog actief in het bedrijf? Waarom wel/niet
Bent u over het algemeen tevreden met het opvolgingsprocess?
Welke aspecten van de opvolging was u het meest blij mee? Welke iets minder?
Hoe gaat het nu financieel met het bedrijf?
Wat waren uw verwachtingen na de overname? Zijn die uitgekomen?
Vraag 2 (Oude eigenaar)
Hoe heeft de relatie tussen u en uw opvolger zich ontwikkeld?
Vond u het moeilijk om het bedrijf over te dragen? Waarom wel/niet?
57


Waar zocht u naar bij het zoeken van een opvolger?
Ging uw voorkeur uit naar een familielid of niet-familielid als opvolger? Waarom wel/niet?
Vraag 3 (Nieuwe eigenaar)
Waarom vond u het nuttig om het bedrijf over te nemen?
Heeft u een agrarische achtergrond? Waarom heeft dit wel/niet bijgedragen aan de bedrijfsvoering?
Heeft u al meegewerkt voordat u het bedrijf overgenomen had?
Heeft u veranderingen aangebracht in de bedrijfsvoering ten opzichte van de vorige eigenaar?
Hoe heeft de relatie tussen u en uw voorganger zich ontwikkeld?
Vraag 4 (Familie)
Zijn familieleden betrokken bij het opvolgingsproces?
Zo ja, Is dit altijd soepel verlopen? Zo nee, waarom niet?
Wat zijn volgens u de voor- en nadelen van een bedrijf overdragen aan een familielid?
Vraag 5 (Advies)
Heeft u advies gehad van een externe partij? Zo ja, waarom heeft u deze partij in de arm genomen? Zo
nee, waarmee had een externe partij u kunnen helpen?
Hoe zag dit advies eruit? Wat heeft u als positief en als negatief ervaren?
Wat verwachtte u van een externa partij? Zijn die verwachtingen uitgekomen?
58


English - Interview Master thesis Pauline van de Voorde
To succesfully finish my Master Srategic Management at Tilburg University, I am recently doing research
in the field of family firm succession within agricultural firms. To get a better understanding about the
subject I am conducting different interviews with agricultural firms who are or finished the process of
succession. First I want to thank you for your interest and time in my research.
Question 1 Succession process
Why are you looking for a successor?/Why would you like to take over the business?
If you could describe the succession process what would it look like?
Did you begin early with the succession planning? Why did you or did you not?
Was the successor from the beginning involved with the succession process? Would you say that this
was useful yes or no and why?
Are you/is your incumbent still active in the firm? Why
Would you say that you are satisfied with the process? Why
Which aspects of the process were positive and which were negative?
How is the business going financially?
What were your expectations after the succession? Were they met?
Question 2 Incumbent
How did the relationship between you and your successor change?
Did you find it difficult to hand over the business? Why?
59


If you could describe your perfect successor what qualities would he or she need to have?
Did you favour a family or non-family member as a successor? Why?
Question 3 Successor
Why did you like to take over the business?
Do you have an agricultural background? Would you say that this is an advantage or not?
Did you practice a level of apprenticeship before you took over the business?
Did you make any changes within the company?
How did the relationship between you and the incumbent change?
Question 4 Family
Are there familymbmers invovled with the succession process?
If yes, are there any problems if no, why not?
What are according to you the advantages and disadvantages of transferring the business to a family
member?
Question 5 Advice
Did you had any advice from an external party? If yes, why were you intrested in that advice? If no, why
not? An do you think such an external party could have helped you?
What did this advice look like? Did you experience it as positive or negative?
What were your expectations from such an external party? Did those expectatios met?
60


Appendix 7 Preview transcript interview
61


62


Appendix 8 Preview of coding scheme
Respondent Reference Code
Firm 1 Het blijft in de familie dus dat is wel leuk dat is een voordeel. Advantage
incumbent family firm
Firm 1 En een nadeel zou zijn je krijgt meer geld als je het verkoopt aan Disadvantage
incumbent een ander. Maar ik zou niet anders leven als nu, dus ik heb liever family firm
dat ik een opvolger heb die ik een beetje kan helpen.
Firm 1 Hij zit al 5 jaar in de VOF dus ik denk van wel. Vanaf de middelbare Early
incumbent school wisten we al dat Jos het over wilde nemen. succession
planning
Firm 1 Nee absoluut niet, klaar is klaar en het is voor hem. Ik heb dan tijd Easy to step
incumbent voor andere dingen dus dat is ook wel eens mooi. down
Firm 1 Ik denk dat dit bedrijf redelijk eenvoudig is redelijk veel pacht dus Expectations
incumbent dan is het wel gemakkelijk om over te nemen. Ook omdat we ons
focussen op 1 gewas is het wel makkelijk we hebben alleen
akkerbouw. Dus ik denk niet dat er veel problemen zullen zijn. Hij
gaat misschien nog wat veranderingen doorvoeren hij begint nu al
met pootgoed bijvoorbeeld maar dat weet ik niet. Het zal aan zijn
interesse liggen, en dat is ook goed want ik ben er dan klaar.
Firm 1 Dikke rekeningen, haha nee dat hij het goed in banen lijdt en hart Expectations
incumbent voor het bedrijf heeft. Dat het wel te doen in overnemen is en
redelijk voor elke partij.
63


Vind je het nog belangrijk dat je een goede band hebt met zon
partij?
Ja die ken ik goed maar een band mee is veel gezegd het is meer
zakelijk, je moet hem natuurlijk wel vertrouwen maar het moet ook
niet een te goed kennis zijn meer een buitenstaander
Firm 1 Dikke rekeningen, haha nee dat hij het goed in banen lijdt en hart Expectations
incumbent voor het bedrijf heeft. Dat het wel te doen in overnemen is en advice
Firm 1 Ja de boekhouder die doet vooral veel External advice

incumbent
Firm 1 Zoeken als het niet in de familie is zou ik het te koop zetten, want Family
incumbent zou niet weten wie het anders moet doen. Dat heb ik liever dan influences
een vreemde denk ik.
Firm 1 Ja ik heb nog een dochter die weet wel alles en die werkt ook bij Family
incumbent onze boekhouder dus die krijgt alles wel mee involvement
Firm 1 Zoeken als het niet in de familie is zou ik het te koop zetten, want Firm stays
incumbent zou niet weten wie het anders moet doen. Dat heb ik liever dan within the
een vreemde denk ik. family
Firm 1 Ja die ken ik goed maar een band mee is veel gezegd het is meer Good and
incumbent zakelijk, je moet hem natuurlijk wel vertrouwen maar het moet ook trustworthy
niet een te goed kennis zijn meer een buitenstaander relationship
external party
64


Firm 1 Het gaat met ups en downs je werkt veel samen maar over het Good
incumbent algemeen gaat het vrij goed ja. relationship
incumbent/suc
cessor
Firm 1 Ik denk wel dat het nuttig is om ervaringen op te doen. High level of
incumbent apprenticeship
Firm 1 Dus ik denk niet dat er veel problemen zullen zijn. Hij gaat Moderate
incumbent misschien nog wat veranderingen doorvoeren hij begint nu al met expectations
pootgoed bijvoorbeeld maar dat weet ik niet. Het zal aan zijn
Firm 1 Ik zoek geen opvolger die is er gewoon, hij mag het zelf weten ik Motivation
incumbent heb er niet op aangedrongen. Als hij het niet wilde doen zouden incumbent
we er mee stoppen dat wel. Of mijn dochter moet het willen maar
die wil het niet.
Firm 1 Alleen hand en span diensten maar minder dan eerst. Alleen dan is Motivation
incumbent het voor hem dus ligt het aan hem of ik nog mee kan werken incumbent
Firm 1 Nee absoluut niet, klaar is klaar en het is voor hem. Ik heb dan tijd Motivation
incumbent voor andere dingen dus dat is ook wel eens mooi. incumbent
Firm 1 Zou diegene nog een agrarische achtergrond moeten hebben? No agricultural
incumbent Nee dat zou niet moeten het zou leuk zijn als het naar een bekende background
gaat dan zou je het nog kunnen zien maar weg is weg.
65


Firm 1 Alle loopt wel soepel maar in de toekomst weet je het nooit No problems
incumbent natuurlijk. Maar omdat het allemaal pacht en erfpacht is komt er
ook niet zoveel bij kijken.
Firm 1 We zitten in VOF en dan gaat dat geleidelijk over naar de Process of
incumbent overdracht. Dus zo wordt het stukje bij beetje. succession
Firm 1 Heeft u advies gehad van een externe partij? Zo ja, waarom heeft u Questions
incumbent deze partij in de arm genomen? Zo nee, waarmee had een externe advice
partij u kunnen helpen?
Ja de boekhouder die doet vooral veel, vooral om kennis in te

winnen. Ik denk niet dat een andere externe partij nodig is.
Hoe zag dit advies eruit? Wat heeft u als positief en als negatief
ervaren?
Wat verwachtte u van een externa partij? Zijn die verwachtingen

uitgekomen?
Dikke rekeningen, haha nee dat hij het goed in banen lijdt en hart
voor het bedrijf heeft. Dat het wel te doen in overnemen is en
Vind je het nog belangrijk dat je een goede band hebt met zon
partij?
niet een te goed kennis zijn meer een buitenstaander.
66


Firm 1 Zijn familieleden betrokken bij het opvolgingsproces? Questions

incumbent family
Ja ik heb nog een dochter die weet wel alles en die werkt ook bij
onze boekhouder dus die krijgt alles wel mee.
Zo ja, Is dit altijd soepel verlopen? Zo nee, waarom niet?

Alle loopt wel soepel maar in de toekomst weet je het nooit
natuurlijk. Maar omdat het allemaal pacht en erfpacht is komt er
ook niet zoveel bij kijken.
Wat zijn volgens u de voor- en nadelen van een bedrijf overdragen

aan een familielid?
Het blijft in de familie dus dat is wel leuk dat is een voordeel. En
een nadeel zou zijn je krijgt meer geld als je het verkoopt aan een
ander. Maar ik zou niet anders leven als nu, dus ik heb liever dat ik
een opvolger heb die ik een beetje kan helpen.
Firm 1 Hoe heeft de relatie tussen u en uw opvolger zich ontwikkeld? Questions

incumbent incumbent
Het gaat met ups en downs je werkt veel samen maar over het
algemeen gaat het vrij goed ja.
Vond u het moeilijk om het bedrijf over te dragen? Waarom

wel/niet?
Nee absoluut niet, klaar is klaar en het is voor hem. Ik heb dan tijd
voor andere dingen dus dat is ook wel eens mooi.
Waar zocht u naar bij het zoeken van een opvolger?
67


Zoeken als het niet in de familie is zou ik het te koop zetten, want
zou niet weten wie het anders moet doen. Dat heb ik liever dan
Zou diegene nog een agrarische achtergrond moeten hebben?

Nee dat zou niet moeten het zou leuk zijn als het naar een bekende
Ging uw voorkeur uit naar een familielid of niet-familielid als

opvolger? Waarom wel/niet?
Ja zie vorige vraag.
Firm 1 Vraag 1 Opvolginsproces Questions

incumbent succession
Waarom zocht u een opvolger? / Waarom wilde u het bedrijf
process
overnemen?
Ik zoek geen opvolger die is er gewoon, hij mag het zelf weten ik
heb er niet op aangedrongen. Als hij het niet wilde doen zouden
we er mee stoppen dat wel. Of mijn dochter moet het willen maar
die wil het niet.
Als u het opvolgingsprocess mocht omschrijven, hoe zou dit er dan

uitzien?
We zitten in VOF en dan gaat dat geleidelijk over naar de

overdracht. Dus zo wordt het stukje bij beetje.
Bent u vroegtijdig begonnen met het plannen van het

opvolginsprocess? Waarom wel/niet?
68


Hij zit al 5 jaar in de VOF dus ik denk van wel. Vanaf de middelbare
school wisten we al dat Jos het over wilde nemen.
Is de opvolger vanaf het begin betrokken geweest bij het

opvolgingsproces? Was dit volgens u nuttig? En waarom?
Tijdens vakanties enzo heeft hij altijd al veel meegwerkt dus hij
kent het bedrijf wel. Maar hij heeft ook nog bij een loonwerker
gewerkt dus dan ziet hij ook wel meer dan alleen ons bedrijf. Ik
denk wel dat het nuttig is om ervaringen op te doen.
Bent u/uw opvolger nu nog actief in het bedrijf? Waarom wel/niet
Alleen hand en span diensten maar minder dan eerst. Alleen dan is
het voor hem dus ligt het aan hem of ik nog mee kan werken.
Bent u over het algemeen tevreden met het opvolgingsprocess?

Welke aspecten van de opvolging was u het meest blij mee? Welke
iets minder?
Hoe gaat het nu financieel met het bedrijf?
Wat waren uw verwachtingen na de overname? Zijn die

uitgekomen?
Ik denk dat dit bedrijf redelijk eenvoudig is redelijk veel pacht dus
dan is het wel gemakkelijk om over te nemen. Ook omdat we ons
focussen op 1 gewas is het wel makkelijk we hebben alleen
akkerbouw. Dus ik denk niet dat er veel problemen zullen zijn. Hij
gaat misschien nog wat veranderingen doorvoeren hij begint nu al
met pootgoed bijvoorbeeld maar dat weet ik niet. Het zal aan zijn
69


Firm 1 Vind je het nog belangrijk dat je een goede band hebt met zon Relationship
incumbent partij? external party
niet een te goed kennis zijn meer een buitenstaander.
Firm 1 Het gaat met ups en downs je werkt veel samen maar over het Relationship
incumbent algemeen gaat het vrij goed ja. incumbent/suc
cessor
Firm 1 Zou diegene nog een agrarische achtergrond moeten hebben? Successors
incumbent Nee dat zou niet moeten het zou leuk zijn als het naar een bekende career
gaat dan zou je het nog kunnen zien maar weg is weg. development
Firm 1 Tijdens vakanties enzo heeft hij altijd al veel meegwerkt dus hij Successors
incumbent kent het bedrijf wel. Maar hij heeft ook nog bij een loonwerker level of
gewerkt dus dan ziet hij ook wel meer dan alleen ons bedrijf. Ik apprenticeship
denk wel dat het nuttig is om ervaringen op te doen.
Firm 1 Ja de boekhouder die doet vooral veel, vooral om kennis in te To gain

incumbent winnen. Ik denk niet dat een andere externe partij nodig is. knowledge
Firm 1 Zoeken als het niet in de familie is zou ik het te koop zetten, want Traits
incumbent zou niet weten wie het anders moet doen. Dat heb ik liever dan successor
Zou diegene nog een agrarische achtergrond moeten hebben?

Nee dat zou niet moeten het zou leuk zijn als het naar een bekende
70


Appendix 9 Results about the satisfaction with the succession process drawn from
combined interview questions.
General satisfaction Moderate High High Very high High Moderate Moderate
Financial satisfaction High High Very High Moderate High High Very low
Expectations have met Moderate Moderate High Moderate High Moderate Moderate
71

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Master Thesis 12.06

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JUNE

TO SURVIVE OR NOT SURVIVE

P.J.A. VAN DE VOORDE

Pauline van de Voorde, Tilburg 2016

Chapter 1 Introduction ................................................................................................................................. 8

1.1 Problem indication ............................................................................................................................. 8

1.2 Problem statement ............................................................................................................................ 9

1.3 Research questions .......................................................................................................................... 10

1.4 Structure ........................................................................................................................................... 10

Chapter 2 Theoretical background succession process .............................................................................. 11

2.1 Introduction ...................................................................................................................................... 11

2.3 Family firm ........................................................................................................................................ 11

2.3.1 Agricultural family firm .............................................................................................................. 13

2.3.2 Definition for the agricultural family firm ................................................................................. 14

2.4 Succession process ........................................................................................................................... 15

2.4.1 Context of the succession process ............................................................................................ 16

2.5 Conclusion ........................................................................................................................................ 19

Chapter 3 Theoretical background satisfaction with the transition ........................................................... 20

3.1 Introduction ...................................................................................................................................... 20

3.2 Influences of the succession process ............................................................................................... 20

I. Incumbent/Successor influences .............................................................................................. 20

II. Family influences ...................................................................................................................... 21

III. Business influences ................................................................................................................... 21

3.3 Satisfaction with the transition ........................................................................................................ 21

I. Incumbent/successor influences .............................................................................................. 23

II. Family influences ...................................................................................................................... 25

III. Business influences ................................................................................................................... 26

3.4 Conclusion ........................................................................................................................................ 26

Chapter 4 Methodology ............................................................................................................................. 28

4.1 Introduction ...................................................................................................................................... 28

4.2 Research design ................................................................................................................................ 28

4.2 Data collection and analysis ............................................................................................................. 28

4.2.1 Kind of data and which data ...................................................................................................... 29

4.2.2 How to collect data ................................................................................................................... 30

4.2.3 Access to data ............................................................................................................................ 30

4.2.4 Data analysis .............................................................................................................................. 30

Chapter 5 Results ....................................................................................................................................... 31

5.1 introduction ...................................................................................................................................... 31

5.2 The process of succession ................................................................................................................ 31

5.3. Incumbent ....................................................................................................................................... 34

5.4. Successor ......................................................................................................................................... 35

5.5. Family influences ............................................................................................................................. 36

5.6 Advice ............................................................................................................................................... 36

5.7. Satisfaction ...................................................................................................................................... 38

Chapter 6 Conclusion ................................................................................................................................. 40

6.1 Introduction ...................................................................................................................................... 40

6.2. Discussion ........................................................................................................................................ 40

6.2.1 Succession process .................................................................................................................... 40

6.2.3. Successors influences .............................................................................................................. 42

6.2.4 Family ........................................................................................................................................ 42

6.3 Conclusion and implications ............................................................................................................. 42

6.3.1 Conclusion ................................................................................................................................. 42

6.3.2 Implications ............................................................................................................................... 44

6.4 Limitations and directions for future research ................................................................................. 44

Appendix 3 Theoretical Model of Successor-Related Factors That Influence Successful Succession

Appendix 5 Letter respondents .............................................................................................................. 56

Appendix 6 Interview questions Dutch and English ............................................................................... 57

Appendix 7 Preview transcript interview ............................................................................................... 61

Appendix 8 Preview of coding scheme ................................................................................................... 63

1.1 Problem indication

1.2 Problem statement

Figure 1 Conceptual Model

2.3 Family firm