Chapter 7: The Role of Managerialization and Professionalization in Family Business Succession: Evidences from Italian Enterprises

This chapter aims to analyze the role of managerialization (the use of managerial mechanisms) and professionalization (the involvement of professional non-family managers) in the family firm’s succession process. In the light of the scarce literature on such issues, it aims to “open the black box,” giving some insights on the relationship between managerial mechanisms, such as strategic planning (SP) and management control systems (MCSs), non-family managers, and family business succession. This is an explorative chapter aimed at developing a theoretical framework on the outlined issues. The research method was based on the analysis of two longitudinal case studies of Italian medium-sized family firms that made different choices in terms of (1) how to cope with the family succession, (2) the role assigned to SP and MCSs, and (3) the involvement of non-family members in this process. Case study analysis shows that managerial mechanisms, as well as non-family professional managers, may have a relevant role in the family firm’s succession, but difficulties and opportunities emerged. A significant role of governance mechanisms was highlighted too. Consistent with research findings, we propose a research framework, articulated in a few propositions, concerning the role of managerialization and professionalization in helping family firms to overcome generation succession.