Transmission as a crucial phase to the sustainability of family control in companies

Abstract

During the periods that trace the professional, process of family businesses, that of the transmission which constitutes without controversy the most decisive. Its preparation remains essential for the stability of the family business. It provokes planning in order to guarantee family cohesion and the sustainability of the business through future generations (Lansberg, 1988). Corporate governance assumes the ability of the manager to plan resources, to measure the degree of commitment of the successor, as well as the search for strategic opportunities arising therefrom (Charreaux, 2008). It appears that the choice of an internal buyer seems more appropriate. The purpose of this article is to shed light on the phenomenon of transmission and its impact on the development and sustainability of the family business. It emphasizes that the independence of these types of structures and their mode of control allow them to pursue, in all singularity, their growth objectives and to contribute to economic development. In this perspective, the predecessor gives priority to an internal successor, who grew up in the business and family environment in order to draw the benefits that facilitate him to identify the cognitive resources of the business and to freely pursue sustainability objectives while adopting appropriate strategic opportunities, according to a collegial decision-making process.

Key words: transmission, family business, governance, sustainability, agency relationship.JEL Classifications: D21Paper type: Theoretical Research