Contribution to the understanding of the role of the governance system in the family business succession process: Case study of Menara Holding Group

Abstract

The aim of this article is to describe the succession process in the family business, based on the mission and role of each governance mechanism to remove the ambiguity of the family business literature as a complex and ambidextrous organization of a set of values ; (ethical, emotional, social, etc.) in the face of changes in the business ecosystem dominated by the power of managerial companies, which aim at short-term growth in order to satisfy their shareholders. On the other hand, family businesses do not lack the assets to do so, they are innovative, and above all they aim for long-term sustainability, in a vision that the family business is considered a wealth that must be passed on to the heirs (successors). However, the family business is characterized by specific and particular governance mechanisms such as: the family council, trust as essential bodies to maintain a lasting climate of transmission to the next generation.

This paper is based on the study of the governance system as a innovative key lever for the successful transmission process in the family business. We chose an exploratory approach with a qualitative methodology to describe and to better analysis our specific research issue.  The results of our study show us that the family business can achieve a successful transmission by realizing a balance among the multiple governance mechanisms such as: family members involved in business management, and administrators in the family business, therefore to find the gap existent between two spheres: the family and the business, according to the specificities of the family business, in our context is Menara Holding Group.