THE INFLUENCE OF IMPLICIT KNOWLEDGE, LEADERSHIP STYLE, AND INHERITED FAMILY VALUES ON THE SUCCESSORS' DESIRE TO CONTINUE THE FAMILY BUSINESS

Abstract

Background: Family business sustainability depends on the next generation's willingness to continue the business, which is influenced by factors such as tacit knowledge, leadership style, and family values. Understanding these factors is crucial for ensuring a successful transition and long-term business continuity.

Purpose: This study aims to analyze the influence of tacit knowledge, leadership style, and family values on the next generation's willingness to continue the family business.

Design/methodology/approach: A quantitative approach was used, with data collected from 109 respondents through a Likert-scale questionnaire. Data analysis was conducted using multiple linear regression.

Findings/Result: The findings show that tacit knowledge, leadership style, and family values significantly impact the next generation's willingness to continue the family business. Among these, family values are the most dominant factor. The R² value of 59,1% indicates that these independent variables adequately explain the variability in the next generation’s willingness.

Conclusion: Family values and leadership style play a crucial role in ensuring the sustainability of family businesses, emphasizing the need for strong intergenerational knowledge transfer and leadership development.

Originality/value (State of the art): This study provides empirical evidence on the role of family values, leadership style, and tacit knowledge in shaping the next generation’s decision to continue family businesses, contributing to family business succession research.