Feasibility of Succession in Family Businesses based on the Integrative Model: Case Mexico
DOI:
https://doi.org/10.55965/setp.5.09.a3Keywords:
succession, innovation, family-owned businesses, strategy, MexicoAbstract
Context. Most Mexican businesses are family-owned, and their continuity depends on effective generational succession. However, many of these businesses lack formal transition structures, which could jeopardize their continuity and sustainability.
Problem. Family-owned businesses (FOBs) face the challenge of structuring their succession processes clearly and effectively to ensure continuity and sustainability. This study aims to examine the structuring of succession processes in Mexican family businesses and to identify the factors that influence the clarity and effectiveness of these mechanisms.
Purpose. To assess the suitability of Mexican Stock Exchange Funds for generational transition and identify key organizational components for structured succession. The study supports SDG8 by promoting professionalized succession and sustainable business continuity.
Methodology. Empirical research was conducted in Jalisco between 2020 and 2022, collecting data from 337 family businesses. The correlation between the clarity of succession criteria and factors such as governance and company size was evaluated. Classification models were compared using indicators such as precision, recall, accuracy, and F1 score.
Theoretical and practical findings. The results indicate that firms with formal governance structures, such as family protocols, boards of directors, and share transfer plans, have strict succession rules. The K-Nearest Neighbors (KNN) model showed the best performance in terms of accuracy (0.8038), F1 score (0.7044), and precision (0.8038). Logistic regression had the highest AUC value (0.8654), indicating a high discrimination ability. The Naive Bayes model had the highest recall value (0.6944), which is relevant for the identification of more positive cases.
Originality. This study is original in applying predictive models to succession in family-owned businesses, providing empirical evidence and contributing to SDG 8.
Conclusions and limitations. Family-owned businesses in Jalisco often lack succession planning, which risks their continuity. Strengthening formal mechanisms can improve transitions. The study is limited to Jalisco, Mexico; further research in other contexts and the institutionalization of succession are recommended.
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