Managers recruited from outside and succession in family business: a case of study

Abstract

This research analyses a major issue on family business: the main reasons to hire managers from outside in the position of CEO, and whether this fact can lead to organizational success. This analysis is conducted in a medium-sized Spanish firm established in logistics industry that was involved in a succession process between 1998-2004. Our study reveals the important role played by CEO recruited from outside and all family members during the succession process. The study concludes by providing several practical lessons.