The Relevance of Game Theory to Succession in Family Firms (Part I)

In the article “Game Theory and Family Business Succession: an Introduction” by Timothy Mathews, Tim Blumentritt and Gaia Marchiso in the March 2013 issue of the journal Family Business Review, game theory is introduced as a framework through which to examine succession as a series of decisions about a family firm’s leadership, for the purpose of better-understanding the outcomes of succession events. Despite the complicated use of mathematical equations inherent in this theory, the authors make a strong case for the relevance of game theory and...

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HBR Study Identifies Key Factors for Successful CEO Transition

The article “Leadership Lessons from Great Family Businesses” published in the Harvard Business Review provides several practical suggestions for increasing the chances of a successful CEO transition process for family enterprises.  By analyzing 50 globally leading family firms with annual revenue above 500 million pounds and investigating the reasons behind their success, authors Fernández-Aráoz, Iqbal and Ritter explain that strong governance; a family focus; an openness to family and non-family members; and a structured, methodical...

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