The Effect of Successor’s Digital Capability on the Level of Willingness to Succeed and the Preparation of Succession

Abstract

This study analyzes the relationship between the levels of successor’s digital absorptive capability, willingness to succeed, and the preparation for succession. The level of digital absorptive capability was found to significantly affect the levels of digital leadership capability and willingness. Furthermore, succession willingness affected the level of succession preparation. The level of digital knowledge of exiting leader moderates the effect between successors’ digital leadership capability and their willingness to succeed. Some additional roles of digital leadership capability and the willingness to succeed were also found. The implications of this study is as follows. The successor’s self-perceived technological capability during the succession process exert an influence on succession outcomes. This can be regarded as the identification of a novel variable for deepening the study of succession processes. Furthermore, the findings of this research suggest that incumbent CEOs and successors of family firms who aspire to take over the business should undergo preparatory stages—such as digital transformation and the adoption of new technologies—in order to be adequately prepared for succession.