How about this other succession option? Gaining a deeper understanding of the conditions under which a nonfamily CEO can thrive

Abstract

Using an inductive grounded theory approach, this study examines the process of trust formation between an owner and a nonfamily CEO throughout their relationship. Building on the relational constructionist perspective and the trust literature, we develop a conceptual model that identifies the different phases in the relationship between the owner and the nonfamily CEO and describe the formation and evolution of trust throughout these different phases. Based on data from seven private family firms, we show that trust between the owner and nonfamily CEO is initially calculus-based (cognition-based), and gradually evolves to relational trust (affective-based).