Family businesses have been a majority in the stage of world economy, and whose combination of ownership, management and family make relevant management issues even more complex. The significance and complexity of family businesses have incrementally attracted more scholar attention. Literature indicates that only one-thirds of family businesses can be passed on to second generation. Succession, therefore, becomes an important issue in the continuity of family business. This study, in adoption of qualitative approach, aims at exploring how the attitude of founders in the family business towards succession can influence the succession process and how they adjust roles in the business during the succession process, and the importance of successors¡¦ level of interests, abilities and development and the criteria of successor selection. Four case companies were interviewed. The results are as follows: 1). Founders in the family business usually nominate their desired successors, but do not have further succession plan, and moreover, remain their influences or statues in the business as consultants once they retire or transfer leadership. 2). Preferences in male siblings are demonstrated. 3). In terms of training and development, successors rely on on-the-job trainings and founders to pass their connections and relevant industrial knowledge, by that successors are likely to build up their legitimacy and gain trust from stakeholders. 4). Successors¡¦ personal interests that are accommodated by succeeding the business is positive for succession. 5). The value of family in the Chinese context is positive for succession.

Family owned businesses strive to not only be successful as measured by profit, market position, and other determinants used to gauge businesses success, but they also strive in the continuity of transitioning management and ownership from one generation to the next. This study explores the experiences of second generation successors with the succession process and how those experiences may influence their approach to planning the next generation succession. A qualitative case study approach was followed, using data collected from twelve second generation family business owners. This research examined the succession experiences of these owners in the areas of succession planning, successor development, individual learning, and the culture of stewardship. A contribution to the body of knowledge is made by developing these areas. This research addresses a gap in the literature where no research existed which specifically focused on second generation experiences. A contribution to practice is made by outlining how these areas influenced second generation family business owners as they contemplate approaches to future succession. This research identifies possible areas for future research.