Family business succession in a transition economy: a qualitative analysis from Hungary
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This study examines succession processes in family-owned businesses in Hungary. Using a qualitative approach that combines deductive and inductive analysis, the research investigates the roles of both the incumbent and successor in facilitating generational transitions. The deductive phase evaluated two theoretical propositions related to the incumbent’s attitude and motivation, based on a five-variable model. The inductive analysis focused on emerging patterns, particularly concerning the successor’s development and motivation, as well as intra-family dynamics. The research sample consisted of 57 interviews published in Forbes Hungary between 2014 and 2024. The data was coded and analyzed using ATLAS.ti, allowing for a structured examination of succession-related factors. The findings confirm that while the incumbent’s willingness to transfer power is essential, the successor’s early orientation, ambition, and voluntary involvement play equally critical roles. Furthermore, the quality of collaboration among siblings and the presence of trust-based family governance structures enhance continuity. This study contributes to the literature by framing succession as a complex, multigenerational, and emotionally charged process shaped by socialization, leadership dynamics, and cultural context. These insights are especially relevant in transition economies where business continuity must be reestablished following historical disruptions. The results provide both theoretical value and practical guidance for family firms preparing for succession.
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