Stakeholder management in business succession : a multi-source analysis of the Australian cake and pastry manufacturing industry

Abstract

A stakeholder management approach is widely recognized as an important contemporary process that assists managers align organizational objectives with those of its stakeholders, which in turn helps the organization achieve its strategic goals. To date, stakeholder theory research has focused on exploring its usefulness and validity for managerial issues where stakeholder participation is imperative, for example in relation to the development of competitive advantage. Limited attention has however, been paid to the role stakeholder management can play in secretive internal issues such as business succession, where stakeholder participation is discretionary and, usually, not elicited. The thesis explores the stakeholder management practices used by owners of Australian manufacturing family business SMEs in relation to business succession. Consistent with other SMEs studies, this research focus on primary stakeholders. The study draws conclusions by comparing the perceptions of owners and other family members as decision-makers and other internal and external non-family stakeholder groups. The research was designed not only to understand current practices, but to identify best practices for the succession process derived from the views of multi-stakeholder groups interested in the process. Specifically, the objectives of this thesis were to understand how stakeholders key to the succession process are identified; how key concerns and demands in relation to succession can impact the existing business relationship and to understand how stakeholders can be engaged for the purpose of achieving a successful succession outcome. The central tenet developed from this research is that a stakeholder management approach needs to be tailored to a specific managerial issue. This research contributes to three streams of the literature. Firstly, by drawing from resource dependency theory and engagement theory, contributions are made to research on stakeholder theory by introducing theoretical developments to the sub-streams on stakeholder identification and stakeholder engagement. Secondly, this research contributes to the literature on family business by exploring and proposing best practices for stakeholder management in business succession. Lastly, by exploring the theoretical assumptions of the thesis in family business SMEs, this research contributes to the literature on Small and Medium Sized Enterprises. The findings of this research have implications for managerial practice in family businesses and professional practitioners who may be assisting during in the succession process.

Date of Award	2021
Original language	English