Under limited time and resource, this paper undoubtedly isn’t able to cover all the related information, so here we would like to propose several directions for future researches.
Firstly, apart from stewardship, it will be interesting to discover what factor also influences succession decision. Secondly, this study takes compensation scheme as the internal factor for professional manager’s stewardship. It will be worth to investigate whether other internal factor like company’s reputation can trigger professional manager’s stewardship. Thirdly, in addition to industry dynamism, we believe it’s also helpful to detect other external factors that will motivate or depress professional manager’s stewardship. To encourage the consistency of academy and practice, we look forward to see future researches continue to explore succession issue and piece up a complete succession research with more powerful data.
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Appendix
Questionnaire A-1 -
High Executive Compensation Scheme / Low Industry Dynamism
To whom it may concern:
This is a study concerning “manager’s decision behavior.” We wish you spend a little to provide valuable feedback. Your comments about this study will have a significant benefit. Your information will be used only for academic investigation, please feel ease to answer. Thank you for your enthusiastic participation
Department of Asia-Pacific Industrial and Business Management National University of Kaohsiung Adviser: Dr. Yi-Min Chen Student: Wei-Hua Chen
※ This questionnaire includes three sections. Please read the following content and answer the questions.
【Section One】Task Scenario
Nowadays, CEO succession becomes a serious issue for family firms. Second generations’ unwillingness or incompetency to succeed is the main factors of this phenomenon. Please imagine that you are the founder/incumbent CEO in a family firm which has been established for 30 years. Its market value reaches one billion Taiwan dollars and the net profit is about one hundred millions Taiwan dollars. However, you are not able to lead the company anymore, so making a succession decision becomes emergent. Since that your children or second generations in family are reluctant or incompetent to succeed, you need to make decision between hiring professional manager as CEO successor and selling the company. Pros and cons are as below.
Hire Professional Manager as CEO Successor
Pros and cons:
1. You as the founder or other family members can unburden the managing pressure while you are still the owner f company.
2. Professional manager may be experienced and competent to lead company go thriving.
3. Share profits with professional manager by giving bonus/compensation may displease the other shareholders.
4. If professional manager perform not as well as expected, company may fall into crisis.
Sell the Company
Pros and cons:
1. You as the founder can receive a considerable sum of money as return.
2. If selling your company to a successful enterprise, it may have more resources to grow.
3. You will lose your whole-life efforts, and your employees and shareholders may be affected in this change
4. .You will lose the ownership of company and give up the right to share profits.
※ Please answer the questions according to the scenario in 【Section One】.
Extremely Low Low Average High Extremely High
I. The degree of possibility that you choose hiring
professional managers as CEO successor. □ □ □ □ □
II. Please make your succession decision.
□ Hire Professional Manager as CEO Successor
□ Sell the Company
III. What’s your preference between hiring professional manager as CEO successor
IV. What are the reasons of your succession decision?
1.
2.
3.
【Section Two】 Please continue the following scenario.
Now you decide to consider the industrial situation before making decision. You notice that this company is in a developing industry. The technology is new and there are only a few competitors in this industry. Thus, this company seems potential to grow and earn profits.
Nevertheless, in this industry, market demand and risk is uncertain and difficult to predict.
Hire Professional Manager as CEO Successor Advantages:
The founder has the ownership of company and has the right to receive 30 million - 50 million Taiwan dollars as annual bonus if company performs well.
Disadvantages:
(1) Professional manager should be paid with 3 million - 5 million Taiwan dollars as annual bonus (equal to 3% - 5% of company’s net profits).
(2) If professional manager doesn’t perform well, company may be in deficit or even close down.
Sell the Company
※ Please answer the questions according to the scenario in 【Section Two】.
Strongly Disagree Disagree Average Agree Strongly Agree
1. Under this industrial condition, the company is potential to
grow. □ □ □ □ □
2. The annual bonus for professional manager is sufficient and
attractive. □ □ □ □ □ 7. Professional manager will emphasize organizational interest
more than self-interest. □ □ □ □ □
8. Professional manager will allocate organizational resources
fairly. □ □ □ □ □
※ Please continue the following questions.
Extremely Low Low Average High Extremely High
I. The degree of possibility that you choose hiring
professional managers as CEO successor. □ □ □ □ □
II. Please make your succession decision.
□ Hire Professional Manager as CEO Successor
□ Sell the Company
III. What’s your preference between hiring professional manager as CEO successor and selling the company?
Sell the Company
1 2 3 4 5 6 7
Hire Professional Manager as CEO
Successor
□ □ □ □ □ □ □
IV. What are the reasons of your succession decision?
1.
2.
3.
※ According to the advantages and disadvantages in 【Section Two】, please answer the following questions.
Extremely Low Low Average High Extremely High
1. How the expected benefits will be if hiring professional
manager as CEO successor? □ □ □ □ □
4. Industry You Work in: □ High-tech Manufacturing □ Traditional Manufacturing □ Other Manufacturing □ Finance & Insurance
Questionnaire A-2 -
High Executive Compensation Scheme / High Industry Dynamism
To whom it may concern:
This is a study concerning “manager’s decision behavior.” We wish you spend a little to provide valuable feedback. Your comments about this study will have a significant benefit. Your information will be used only for academic investigation, please feel ease to answer. Thank you for your enthusiastic participation
Department of Asia-Pacific Industrial and Business Management National University of Kaohsiung Adviser: Dr. Yi-Min Chen Student: Wei-Hua Chen
※ This questionnaire includes three sections. Please read the following content and answer the questions.
【Section One】Task Scenario
Nowadays, CEO succession becomes a serious issue for family firms. Second generations’ unwillingness or incompetency to succeed is the main factors of this phenomenon. Please imagine that you are the founder/incumbent CEO in a family firm which has been established for 30 years. Its market value reaches one billion Taiwan dollars and the net profit is about one hundred millions Taiwan dollars. However, you are not able to lead the company anymore, so making a succession decision becomes emergent. Since that your children or second generations in family are reluctant or incompetent to succeed, you need to make decision between hiring professional manager as CEO successor and selling the company. Pros and cons are as below.
Hire Professional Manager as CEO Successor
Pros and cons:
1. You as the founder or other family members can unburden the managing pressure while you are still the owner f company.
2. Professional manager may be experienced and competent to lead company go thriving.
3. Share profits with professional manager by giving bonus/compensation may displease the other shareholders.
4. If professional manager perform not as well as expected, company may fall into crisis.
Sell the Company
Pros and cons:
1. You as the founder can receive a considerable sum of money as return.
2. If selling your company to a successful enterprise, it may have more resources to grow.
3. You will lose your whole-life efforts, and your employees and shareholders may be affected in this change
4. .You will lose the ownership of company and give up the right to share profits.
※ Please answer the questions according to the scenario in 【Section One】.
Extremely Low Low Average High Extremely High
I. The degree of possibility that you choose hiring
professional managers as CEO successor. □ □ □ □ □
II. Please make your succession decision.
□ Hire Professional Manager as CEO Successor
□ Sell the Company
III. What’s your preference between hiring professional manager as CEO successor
IV. What are the reasons of your succession decision?
1.
2.
3.
【Section Two】 Please continue the following scenario.
Now you decide to consider the industrial situation before making decision. You notice that this company is in a mature industry. The technology is mature and the competition is intense in this industry. Thus, this company seems to have less potential to grow and earn profits. Fortunately, market demand and risk is clear and predictable in this industry.
Hire Professional Manager as CEO Successor Advantages:
The founder has the ownership of company and has the right to receive 30 million - 50 million Taiwan dollars as annual bonus if company performs well.
Disadvantages:
(1) Professional manager should be paid with 3 million - 5 million Taiwan dollars as annual bonus (equal to 3% - 5% of company’s net profits).
(2) If professional manager doesn’t perform well, company may be in deficit or even close down.
Sell the Company
※ Please answer the questions according to the scenario in 【Section Two】.
Strongly Disagree Disagree Average Agree Strongly Agree
1. Under this industrial condition, the company is potential to
grow. □ □ □ □ □
2. The annual bonus for professional manager is sufficient and
attractive. □ □ □ □ □ 7. Professional manager will emphasize organizational interest
more than self-interest. □ □ □ □ □
8. Professional manager will allocate organizational resources
fairly. □ □ □ □ □
※ Please continue the following questions.
Extremely Low Low Average High Extremely High
I. The degree of possibility that you choose hiring
professional managers as CEO successor. □ □ □ □ □
II. Please make your succession decision.
□ Hire Professional Manager as CEO Successor
□ Sell the Company
III. What’s your preference between hiring professional manager as CEO successor and selling the company?
Sell the Company
1 2 3 4 5 6 7
Hire Professional Manager as CEO
Successor
□ □ □ □ □ □ □
IV. What are the reasons of your succession decision?
1.
2.
3.
※ According to the advantages and disadvantages in 【Section Two】, please answer the following questions.
Extremely Low Low Average High Extremely High
1. How the expected benefits will be if hiring professional
manager as CEO successor? □ □ □ □ □
11. Industry You Work in: □ High-tech Manufacturing □ Traditional Manufacturing □ Other Manufacturing □ Finance & Insurance
Questionnaire A-3 -
Low Executive Compensation Scheme / Low Industry Dynamism
To whom it may concern:
This is a study concerning “manager’s decision behavior.” We wish you spend a little to provide valuable feedback. Your comments about this study will have a significant benefit. Your information will be used only for academic investigation, please feel ease to answer. Thank you for your enthusiastic participation
Department of Asia-Pacific Industrial and Business Management National University of Kaohsiung Adviser: Dr. Yi-Min Chen Student: Wei-Hua Chen
※ This questionnaire includes three sections. Please read the following content and answer the questions.
【Section One】Task Scenario
Nowadays, CEO succession becomes a serious issue for family firms. Second generations’ unwillingness or incompetency to succeed is the main factors of this phenomenon. Please imagine that you are the founder/incumbent CEO in a family firm which has been established for 30 years. Its market value reaches one billion Taiwan dollars and the net profit is about one hundred millions Taiwan dollars. However, you are not able to lead the company anymore, so making a succession decision becomes emergent. Since that your children or second generations in family are reluctant or incompetent to succeed, you need to make decision between hiring professional manager as CEO successor and selling the company. Pros and cons are as below.
Hire Professional Manager as CEO Successor
Pros and cons:
1. You as the founder or other family members can unburden the managing pressure while you are still the owner f company.
2. Professional manager may be experienced and competent to lead company go thriving.
3. Share profits with professional manager by giving bonus/compensation may displease the other shareholders.
4. If professional manager perform not as well as expected, company may fall into crisis.
Sell the Company
Pros and cons:
1. You as the founder can receive a considerable sum of money as return.
2. If selling your company to a successful enterprise, it may have more resources to grow.
3. You will lose your whole-life efforts, and your employees and shareholders may be affected in this change
4. .You will lose the ownership of company and give up the right to share profits.
※ Please answer the questions according to the scenario in 【Section One】.
Extremely Low Low Average High Extremely High
I. The degree of possibility that you choose hiring
professional managers as CEO successor. □ □ □ □ □
II. Please make your succession decision.
□ Hire Professional Manager as CEO Successor
□ Sell the Company
III. What’s your preference between hiring professional manager as CEO successor
IV. What are the reasons of your succession decision?
1.
2.
3.
【Section Two】 Please continue the following scenario.
Now you decide to consider the industrial situation before making decision. You notice that this company is in a developing industry. The technology is new and there are only a few competitors in this industry. Thus, this company seems potential to grow and earn profits.
Nevertheless, in this industry, market demand and risk is uncertain and difficult to predict.
Hire Professional Manager as CEO Successor Advantages:
The founder has the ownership of company and has the right to receive 30 million - 50 million Taiwan dollars as annual bonus if company performs well.
Disadvantages:
(1) Professional manager should be paid with 5 hundred thousand - 1 million Taiwan dollars as annual bonus (equal to 0.5% - 1% of company’s net profits).
(2) If professional manager doesn’t perform well, company may be in deficit or even close down.
Sell the Company
※ Please answer the questions according to the scenario in 【Section Two】.
Strongly Disagree Disagree Average Agree Strongly Agree
1. Under this industrial condition, the company is potential to
grow. □ □ □ □ □
2. The annual bonus for professional manager is sufficient and
attractive. □ □ □ □ □ 7. Professional manager will emphasize organizational interest
more than self-interest. □ □ □ □ □
8. Professional manager will allocate organizational resources
fairly. □ □ □ □ □
※ Please continue the following questions.
Extremely Low Low Average High Extremely High
I. The degree of possibility that you choose hiring
professional managers as CEO successor. □ □ □ □ □
II. Please make your succession decision.
□ Hire Professional Manager as CEO Successor
□ Sell the Company
III. What’s your preference between hiring professional manager as CEO successor and selling the company?
Sell the Company
1 2 3 4 5 6 7
Hire Professional Manager as CEO
Successor
□ □ □ □ □ □ □
IV. What are the reasons of your succession decision?
1.
2.
3.
※ According to the advantages and disadvantages in 【Section Two】, please answer the following questions.
Extremely Low Low Average High Extremely High
1. How the expected benefits will be if hiring professional
manager as CEO successor? □ □ □ □ □
18. Industry You Work in: □ High-tech Manufacturing □ Traditional Manufacturing □ Other Manufacturing □ Finance & Insurance
Questionnaire A-4 -
Low Executive Compensation Scheme / High Industry Dynamism
To whom it may concern:
This is a study concerning “manager’s decision behavior.” We wish you spend a little to provide valuable feedback. Your comments about this study will have a significant benefit. Your information will be used only for academic investigation, please feel ease to answer. Thank you for your enthusiastic participation
Department of Asia-Pacific Industrial and Business Management National University of Kaohsiung Adviser: Dr. Yi-Min Chen Student: Wei-Hua Chen
※ This questionnaire includes three sections. Please read the following content and answer the questions.
【Section One】Task Scenario
Nowadays, CEO succession becomes a serious issue for family firms. Second generations’ unwillingness or incompetency to succeed is the main factors of this phenomenon. Please imagine that you are the founder/incumbent CEO in a family firm which has been established for 30 years. Its market value reaches one billion Taiwan dollars and the net profit is about one hundred millions Taiwan dollars. However, you are not able to lead the company anymore, so making a succession decision becomes emergent. Since that your children or second generations in family are reluctant or incompetent to succeed, you need to make decision between hiring professional manager as CEO successor and selling the company. Pros and cons are as below.
Hire Professional Manager as CEO Successor
Pros and cons:
1. You as the founder or other family members can unburden the managing pressure while
1. You as the founder or other family members can unburden the managing pressure while