Abstract:
The study highlights the determinants of continuity and viability for a South African family
owned firm across three generations. Family firms contribute significantly to the South
African and global economy, and are therefore an area of interest for family firms and
academics alike. For the purposes of this study, continuity means the existence and
transfer of ownership of the firm across generations, while viability means profitability. The
primary objective of this study is to explore the purported determinants of continuity and
viability of the firm and to determine the impact these factors has on the continuity and
viability of the firm. Ideals is firm that has successfully transitioned across three
generations as a viable entity. The target population for this study was family members
who are employed in the firm as well as all non-family employees of the firm. A total of six
open ended interviews were held and a total of 62 individual surveys were returned from
146 employee surveys sent out. The interview data collected was subjected to qualitative
data analysis methods including content analysis, narrative enquiry, constant comparative
and triangulation. The employee survey data was subjected to statistical analysis. The
findings of this study shows a positive effect of governance practices, long term vision,
sound value system, calculated risk taking and strategic and succession planning activities
on the continuity and viability of the firm.
