Differences in the Leadership Styles of Founder and Successor Generations in Family Businesses: A Systematic Literature Review

Abstract

The sustainability of family businesses largely depends on the succession process, which often brings leadership challenges between founding and successor generations. Founders are typically characterized by paternalistic and communal leadership styles, emphasizing control, long-term orientation, and socioemotional values, whereas successors tend to adopt more transactional, transformational, participative, or laissez-faire approaches influenced by professionalism, trust, and modernization. This Systematic Literature Review (SLR) synthesizes findings from recent studies indexed in ScienceDirect, Emerald Insight, and Scopus (2014–2025) to identify differences in leadership styles and the factors shaping them. The analysis reveals that key determinants include education and experience, socioemotional wealth, organizational culture, trust in subordinates, succession process, and professionalization. While founders’ leadership is often rooted in legacy and relational commitment, successors are more responsive to innovation, motivation, and collaborative work environments. These intergenerational distinctions highlight evolving leadership dynamics that affect business continuity and adaptation. The findings contribute to a deeper understanding of leadership transitions in family firms and offer practical implications for managing intergenerational succession effectively.