THE ROLE OF FAMILY CLIMATE IN OVERCOMING POWER SYNDROME IN FAMILY BUSINESS SUCCESSION

Abstract

This study aims to examine the factors causing power syndrome, namely the reluctance of the older generation to relinquish authority during family business succession. This issue has become increasingly important because family businesses are required to adapt and build trust with stakeholders, yet succession processes are often hindered by resistance from founders or senior family members. The study employs a systematic literature review using academic journal articles and industry reports related to family business succession and leadership transition. Data were analyzed through thematic synthesis to develop a conceptual framework explaining the relationship between the identified variables. The findings reveal four main factors triggering power syndrome: (1) the founder’s psychological attachment to the business; (2) the desire to maintain control and fear of losing authority; (3) weak corporate governance systems and the absence of formal succession planning; and (4) distrust toward the capabilities of the next generation. In addition, family conditions significantly influence the relationship between these factors and power syndrome. Negative family environments tend to strengthen resistance to succession, whereas supportive family relationships can reduce reluctance to transfer leadership by improving communication and leadership effectiveness. The study concludes that addressing power syndrome requires not only structural and governance improvements but also attention to the psychological aspects of founders and the creation of a supportive family environment. Therefore, practitioners are encouraged to integrate family counseling and interpersonal communication strategies into succession planning to ensure smoother leadership transitions in family businesses.