||Succession plays an important role in enterprises, however, succession is more complicated in Family business. Western countries focus on human resource training of succession, but different from western countries, in my country, the way to choose successor based on family members, especially for blood relationship and marriage relationship. Hence, the succession model in orient does not fit on the western model.|
A well-known proverb said, “From clogs to clogs is only three generations,” people use this to estimate the destiny of family business. In current research filed, most research focus on the succession process of first generation entrepreneur to the second generation; but due to the old saying, it lack of the research on the succession of third generation. It reveals that this issue is still not be emphasized, and therefore in this thesis, it focuses on the succession procession of the third generation.
The research select two food manufacture to detect the succession process of the third generation by collecting secondary data and qualitative method to discuss. I separate the succession process into five steps, including plan, cultivation, guidance, independence and support to examine whether the process is complete or not and also to figure out the ideals of further succession after the third generation.
It is the cultivation of follow-up succession plays an important role, not the successor. Family business should plan the succession strategy as early as possible, and the successors should not be restricted in family members, and should put corporate governance in consideration to complete the process of succession so that the enterprise can have sustainable operation.