The importance of specific human capital, planning and familiarity in Dutch small firm ownership transfers

Authors Lex van Teeffelen , Martijn Driessen , Lorraine Uhlaner
Published in International Journal of Entrepreneurship and Small Business
Publication date 2011
Type Article

Summary

This study focuses on the transfer process and the importance of human capital and succession planning as firm resource from the seller’s perspective. It further differentiates amongst two types of human capital - specific and generic - to predict the transfer duration, obtained price and satisfaction with the transfer. A representative dataset of 112 Dutch small firm owners, who sold their firm in 2005 and 2006, is analyzed. Hierarchical multiple regressions show that specific human capital, like flexibility, social skills and market awareness predict transfer performance better than generic human capital like general education. Results also indicate that succession planning in business transfers is unrelated to the objective transfer performance indicators transfer duration and obtained price. Succession planning is strongly related to the subjective transfer performance indicator satisfaction. Results also show that familiarity between seller and buyer rather than kinship or family ties is a key predictor for all transfer performance indicators.

researchcomponents.publicationcontent.personslist.publicationauthors

  • Lex van Teeffelen
    Lex van Teeffelen
    • Professor
    • Research groups: Financial-Economic Advice in Innovation

Language English
Published in International Journal of Entrepreneurship and Small Business
Year and volume 14 1
ISBN/ISSN URN:ISSN:1476-1297
Page range 127-148

Lex van Teeffelen

Lex van Teeffelen

Lex van Teeffelen

  • Professor
  • Research group: Financial-Economic Advice in Innovation