Research The Factors That Affect The Succession Of Malaysia Family Business

According to statistics, the average life expectancy of family business is24yearsold only, many family businesses will end when the founder died or no longer managethe family business. The crisis of heritage is the biggest problem facing by familybusiness. Although Malaysia has70%of companies are family businesses, but lack ofresearch on family business heritage issues. And now, a lot of the founder of the familybusiness in Malaysia has reached retirement age, more and more enterprises are facingthe family inheritance issues.This paper researches the succession of both domestic and foreign family business,obtain four affected factors, include incumbent’s succession plan, incumbent acceptsrole change, the successor has the concept of organizational commitment, the successorhas the skill and experience, and related variables, include the preparation forsuccession, the starting time for succession plan, the involvement of the incumbent onfamily business strategy role after he leave his post, the incumbent hand over skill andexperience to the successor, the successor is familiar with the internal shareholder andexternal shareholder of the family business, the acceptability of role change of theincumbent, the successor’s interested with the family business since he’s young, theparticipation on family business of the successor before he officially attend the familybusiness, the intention on attend the family business of the successor, the successor’swilling on take over the family business, the educational level of the successor, thesuccessor practices in other company before he attend the family business, the successorobtain skills in other company, the management style of the successor after theincumbent leave his post, that affect the succession of Malaysia family business, andaccordingly design a questionnaire, set the survey object as the family business thathave been managing by the second generation for at least three years, covering differentareas of different sizes of family business in Malaysia.At the part of data processing, the paper adopted variable analysis method, the dataobtained by questionnaire are processed by the statistical analysis software SPSS.Process each of the four assumptions on KMO Value and Bartlett Test. On the part ofvariable verification, adopted Cronbach reliability coefficients measured its reliability.After the model is established, carried out the empirical analysis on the succession ofMalaysia family business, obtained the existed problems on the succession of Malaysiafamily business, include the incumbent carry out aged retirement, the incumbentinterfere business administration after retirement, the successor carry out poormanagement; reasons for the existence of problems, include the incumbent lack ofsuccession plan, the incumbent cannot accept role change, the successor lack of theconcept of organizational commitment. After that, provide useful suggestions to thesuccession of Malaysia family business, include the incumbent have to establish asuccession plan, the incumbent accept role change needs security assurance, thesuccessor needs the concept of organizational commitment.