Relationship between Succession planning and Retirement variables among Family Businesses in India: A Cross Gender study
Findings Research methodology
Hypothesis Variables of the study Problem Background
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Lack of confidence Lack of working capital Socio Cultural Barriers (77% of the respondents said that family business was legacy of their sons) : Patriarchal Structure of business. Economic independence & autonomy are absent. Less risk bearing capacity (because of more dependency). Family involvement.
These problems faced by women entrepreneurs influence the way of working and planning for succession and retirement.
Variables of the Study
Dependent Variables • Succession Planning Independent Variables • Retirement Planning * • retiree well being and development (well being) The process of leadership • wealth mgmt and transfer (wealthmg) transfer from the outgoing • continuity and viability of the enterprise (Continui) CEO to a new one . • Ownership transfer and organizational governance (Ownershi) • leadership succession and development (Leadership) • relationship with the family (Relation) The outgoing CEO leading a successful and contended new life outside the family business. • Gender * Potts, T. L., Schoen, J. E., Loeb, M. E., & Hulme, F. S. (2001). Effective Retirement for Family Business Owner-Managers: Perspectives of Financial Planners, Part I. Journal of Financial Planning, 14(6), 102.
Hypothesis of the study
H1: There was significant influence of gender on relationship between retirement and succession planning H2: There was a significant influence of gender on degree of relationship between retirement planning dimensions and succession planning H2a: There was a significant influence of gender on relation between retiree’s well being and development concerns and succession planning (H2a-f for different dimensions of retirement)
sample from 40 female and 40 male CEOs of Family businesses in India. • snow ball sampling technique to counter low response error. • Only CEOs or top management with power were chosen for study • with minimum employees = 20 • with minimum 4 years of operations •
Psychometric properties of Scale
N Mean Variance SD Cronbach’s Alpha .787 Statistics for scale 7 34.26 13.326 (retirement planning) Scale Mean if Scale Corrected ItemItem Deleted Variance if Total Correlation Item Deleted retiree well being and 29.00 9.426 .578 development (well being) wealth mgmt and 28.81 9.995 .500 transfer (wealthmg) continuity and 28.93 9.370 .636 viability of the enterprise (Continui) Ownership transfer 28.97 9.306 .649 and organizational governance (Ownershi) leadership succession 28.94 9.785 .595 and development (Leadership) relationship with the 28.15 11.239 .291 family (Relation) Succession planning 32.77 11.837 .359 3.650 Squared Multiple Correlation .426
The Cronbach’s Alpha Cronbach's for all the items in Number of items in Alpha if the scale were above Item each part Deleted 0.70 and hence the scaleA1-A6 reliable was .747 one. .763 .735 B1-B5 Validity of the scale was tested through C1-C5 Liserel and all the paths were found to O1-06 be valid with acceptable R square values . D1-D9
Cronbach's Alpha Based on Standardized Items .783
Retirement Planning Dimensions : Cross Gender
Variables of retirement Male retiree well being and development (well 5.32 being) wealth mgmt and transfer (wealthmg) continuity and viability of the enterprise (Continui) 5.25 5.20 Female 2 5 6 4 3 1 5.25 5.58 5.40 5.38 5.23 6.00 5 2 3 4 6 1
Ownership transfer and organizational 5.28 governance (Ownershi) leadership succession and development 5.30 (Leadership) relationship with the family (Relation) 6.03
Though top ranking dimension across gender for CEOs is relationship with family after retirement the ranking across the...
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