Navigating external succession in German ‘Mittelstand’ family-owned manufacturing companies - a multi-perspective study on leadership transition, governance, and socioemotional wealth

Neusser, C. (2026) Navigating external succession in German ‘Mittelstand’ family-owned manufacturing companies - a multi-perspective study on leadership transition, governance, and socioemotional wealth. DBA thesis, University of Reading. doi: 10.48683/1926.00129787

Abstract/Summary

This doctoral thesis examines external succession in German Mittelstand family-owned manufacturing firms, emphasizing leadership transitions to EXTs. It explores how legitimacy, trust, and governance develop during these successions, expanding beyond the traditional focus on intra-family succession. Grounded in an interpretivist paradigm and abductive reasoning, the study employs a qualitative multiple-case approach based on 102 interviews across 42 firms, supplemented by extensive secondary materials. Eight core cases with 25 interviews were selected to reflect variation in governance formalisation and succession outcomes. Through a process-oriented analytical strategy, the thesis develops the MSTM framework (Mechanisms–Structure–Trust Mandate), which reconceptualises external succession as a recursive, multi-level process shaped by symbolic negotiation, structural adaptation, and evolving mandates. The empirical findings reveal that external succession is neither a discrete event nor a linear sequence but an iterative negotiation of power, legitimacy, and identity. Key patterns include symbolic tipping points, narrative alignment rituals, and path-dependent governance reconfigurations. The thesis identifies four firm-level succession configurations and twelve actor archetypes, offering a typological and behavioural mapping of externally led transitions. Theoretically, the thesis contributes to the succession and family business literature by integrating and extending legitimacy theory, socioemotional wealth, stewardship theory, and organisational ecology. It shows how multilevel alignment, across individuals, governance structures, and legacy narratives, is critical for succession success. Practically, it offers visual tools, diagnostic checklists, and implementation frameworks for family owners, external leaders, and advisors to navigate succession with greater clarity and reflexivity in the future. By theorising external succession as a context-contingent, recursive, and legitimacy-dependent process, this thesis advances a mid-range theoretical contribution that bridges empirical depth and conceptual clarity. It opens new avenues for future research on post-succession adaptation, hybrid governance regimes, and succession resilience in family firms undergoing external leadership transitions.

Item Type	Thesis (DBA)
URI	https://centaur.reading.ac.uk/id/eprint/129787
Identification Number/DOI	10.48683/1926.00129787
Divisions	Henley Business School > Digitalisation, Marketing and Entrepreneurship
Date on Title Page	September 2025
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