Planning for Growth: Life Stage Differences in Family Firms

Applying insights from the generational perspective, this study explores when strategic planning and succession planning are most conducive to privately held family firm growth. The results show that the degree to which strategic planning and succession planning are associated with family firm growth depends on the generation managing the firm. Both forms of planning are most conducive to the growth of first-generation firms; however, neither form of planning confers much growth for second-generation firms. For third-and-beyond-generation firms, the benefits of succession planning appear to reemerge. However, strategic planning is negatively associated with their level of growth.