The Succession Process in Family Businesses in Togo: The role of gender and family hierarchy

Abstract

Family businesses are considered the oldest organizational form in the world and play a vital role in the global economy, particularly in Africa. They differ from other types of firms because of their specific governance structures. Any discussion of family businesses inevitably raises the issue of succession processes. The transfer of family businesses from one generation to another remains one of the main challenges faced by many families seeking to ensure the continuity of their heritage, whether in Western or Asian countries. Togolese family businesses are no exception. They are currently facing a large-scale succession phenomenon that has become a national issue, given the importance of new enterprises in the Togolese private sector. This situation may weaken their sustainability and negatively affect the Togolese economy. To improve this transfer process, our study focuses on succession planning and particularly on the choice of a successor, which constitutes a crucial stage in the succession process. Using a qualitative method based on six case studies constructed from life-history narratives of successors and predecessors, the findings show that the predecessor’s willingness to withdraw from the business and the absence of a succession plan are key dimensions for properly preparing and successfully managing succession planning. Gender and family hierarchy emerge as the determining factors in the selection of successors in Togolese family businesses. Our research develops a set of propositions to be considered in succession dynamics in order to ensure the sustainability of family businesses in Togo and to enable heirs to successfully transfer their heritage from one generation to the next.

Classification JEL : G34, J16, L26, M10

Paper type: Empirical Research