Succession is the Achilles’ heel of family businesses. A key reason for failure in this process is the insufficient or null preparation that next-gen leaders may receive before they take over leadership positions. The theory of leader-member exchange (LMX) suggests that the quality of the relationship between the leader and other members has a significant impact on their development. Hence, high-quality relationships lead to stronger bonds, and ultimately, better leadership development.

In a family business, close relationships between key stakeholders are present by default. The impact of these relationships can heavily influence the business environment and shape the experience of incoming leaders who are closely related to family, non-family members and other stakeholders. Much research has examined how families develop the business and technical skills of their business successors, yet little is known about the impact their relationships have on the leadership skills of heirs.

Maria José Parada

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