Leadership and succession in Trinidadian family businesses

This research examines the qualities required for establishing effective leadership succession in private Family Businesses (pFB) in Trinidad, private meaning those still wholly-owned by family members. Trinidad’s pFB are major employers and contributors to economies globally and, yet, prior research shows that only around a quarter to a third survive to a second generation and only one-in-ten to a third. Therefore, identifying and developing the factors that support pFB continuity and transition are important both locally and internationally. This study identifies the key leadership and related elements for successful pFB continuity and succession in the Caribbean nation of Trinidad. The research is based on a qualitative approach, using in-depth, semi-structured, and open-ended interviews with eleven purposively-selected local pFB leaders. Interviewees comprised first- and second-generation leaders with ten existing pFB’s and one now-dormant pFB. The results show that none had established formal succession plans, but achieved success principally through effective face-to-face conversations between the leader, typically the parent, and the successor, typically one of the parents’ children. The research provides a valuable insight into the critical qualities deemed necessary for leaders to achieve continuity in their family business. The eight qualities identified for pFB success emanated from the data gathered (capability; honesty; and integrity), from the conceptual framework developed based on prior literature (vision; and effective communication), and from the discussions held (industry knowledge; a sound knowledge of the pFB organisational structures; and the support of the incumbent leader). These, alongside some measures of financial performance, lead to long-term success, and therefore generational continuity. This research extends current knowledge on how pFB continuity in Trinidad may be achieved, based on identifying the leadership qualities required. Further research is recommended on refining such knowledge across the Caribbean and into different territories, sectors, markets and industries.