Succession Planning for Small and Medium-Sized Family Advertising Agencies in Cyprus

244 Pages·2014·0.9 MB·English

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Flourentzou, Evangelia (2014) Succession planning for small and medium-sized family
advertising agencies in Cyprus. DProf thesis, Middlesex University. [Thesis]
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Succession Planning
for Small and Medium-Sized Family Advertising Agencies in
Cyprus

by
Evangelia Flourentzou

A project submitted to Middlesex University in partial fulfillment of the requirements
for the degree of Doctor of Professional Studies

Institute for Work Based Learning Middlesex University

ACKNOWLEDGMENTS

This research project would not have been possible without the support and mentoring
of my advisor, Professor Paul Gibbs, my consultant, Dr Eleni Stavrou-Costea, and my
employer, Mr Mikis Christodoulou, owner-manager of Contact Advertising.

Dedicated to the memory
of my beloved mother
Despina Papageorgiou-Flourentzou
ABSTRACT

Leadership succession is not a single measure, but rather a complex process (Sharma
et al., 2001) that is necessary to ensure continuity of effective managerial control and
engagement in a business entity (Charan et al., 2001). Thus, the aim of this work-
based project involves addressing and examining the question of succession planning
in family-owned and managed small and medium-size Cypriot advertising agencies,
as well as developing a feasible model of leadership succession for such agencies. It
takes into consideration the four major stakeholders in advertising agencies, namely
non-family employees, owner-managers, clients, and the media.
The study’s roadmap draws on Freeman’s (1984) Stakeholder Theory and Ajzen’s
(1991) Planned Behaviour to explore the attitudes and perceptions of important
stakeholders at work, as well as on Hofstede’s (2001) Cultural Dimension Approach
to understand the cultural context of Cyprus. Moreover, research adds to extant
literature by providing information regarding stakeholders such as media and clients,
and by placing emphasis on the feelings and needs of non-family employees in the
context of the family firm’s working environment.
To that end, this action research project involves semi-structured interviews and focus
groups to investigate a) the attitudes of the four major stakeholders towards
succession-related issues; b) non-family employees and owner-managers’ perceptions
of what important and influential stakeholders in advertising agencies think about
succession in such agencies; c) the behavioural intentions of non-family employees to
stay or leave their workplace in connection with the family firm’s succession, and the
owner-managers intentions to keep succession in the family or engage non-family
employees in the firm’s succession planning; and d) explain findings on
organisational mentality regarding succession through the cultural lens.
The findings of this study reveal that succession is not a top priority issue of
advertising agencies’ owner-managers who view succession as a single event rather
than a long-term planning process. Moreover, findings support that all stakeholders
participating in the research perceive succession as a family matter, while the impact
of the Cypriot culture is a determinant of the creation of such perceptions and
attitudes. This study’s results also underline the importance of adopting strategic
planning for leadership succession that includes skilled non-family employees, since
talent and expertise are necessary ingredients for success in such a competitive and
complex field as advertising.
The project’s outcome is a model of leadership succession that takes into account
insights of the major stakeholders in advertising agencies and provides a map of the
succession planning process, indicating important steps and features necessary for its
successful implementation. As such, the proposed model of leadership succession has
an impact on advertising agencies as business entities, as well as on the four major
stakeholders involved in such agencies, since it incorporates their personal and
professional needs alongside their positions regarding succession and ensures a
smooth leadership takeover by talented non-family professionals responsible for
leading a family firm forward.
The workability of the leadership succession model has been tested at Contact
Advertising, the researcher’s workplace, and it is at the disposal of all family-run
advertising agencies in Cyprus.
TABLE OF CONTENTS

Acknowledgements iv
Abstract v
Table of Contents vi
Chapter 1 Introduction, Background and Context 1
Context of small and medium-sized family businesses in Cyprus 3
The case of advertising agencies in Cyprus 12
Contact Advertising 13
Purpose of the project 14
Aims 14
Objectives 15
Outcome 16
Chapter 2 Literature Review 18
Definition of SMEs 20
Definition of family business, research on family business,
the concept of familiness 20
Succession planning 25
Theories used in family firm research 32
Theoretical basis of this research project 35
The case on non-family employees as important
stakeholders in family firms 41
The case of owner-managers as important
stakeholders in family firms 46
Existing literature on family SMEs
and succession issues in Cyprus 55
Advertising industry and family advertising
agencies in Cyprus 55
Conclusion 57
Chapter 3 Methodology literature, design and procedure 60
Study’s model 61
Philosophical assumptions 63
The role of the insider-researcher 65
Methodological approach 66
Strategy of inquiry 70
Qualitative methods of collecting data 71
Data and information analysis 77
Evaluation and interpretation of data-
Validating the accuracy of findings 78

Chapter 4 Data analysis and results 81
Non-family employees of advertising agencies-
Presentation of findings 81
Owner-managers of advertising agencies-
Presentation of findings 115
Clients of advertising agencies-
Presentation of findings 148
Media- Presentation of findings 161

Chapter 5 Ethics and politics in research-
Ethical issues 169

Chapter 6 Discussion 173
Non-family employees 174
Owner-managers 180
Clients and media 185
Chapter 7 Project’s Outcome 189
The Cypriot organisations’ cultural context 189
Advertising agencies’ organisational structure 194
Proposed model of leadership succession 196
Report of testing the proposed model of
leadership succession at Contact Advertising 200

Chapter 8 Conclusion, implications, limitations
and suggestions 203
Implications for stakeholders 205
Limitations and suggestions 209

Chapter 9 Reflection 212

Appendix 214

References 216
CHAPTER 1
INTRODUCTION, BACKGROUND AND CONTEXT

The object of this work-based research is to investigate the issue of succession planning in
Cyprus’s advertising agencies, taking into account four major stakeholders at the workplace,
and subsequently to design a workable framework of a model of succession planning within
the operational context of agencies that rank in the category of family-owned and managed
micro, small and medium-sized business entities (SMEs). The feasibility of the succession
planning model to emerge from this study will be tested at Contact advertising agency, the
researcher’s workplace.
Exploring the attitudes and perceptions of these four stakeholders in the advertising business
regarding succession will help clarify the business needs and demands of these particular
stakeholders in relation to the succession planning process. It will also identify the most
fundamental factors underlying the structure as well as the essence of a robust leadership
succession plan – a prerequisite for future business growth and human resource satisfaction.
Specifically, the beliefs and perceptions of these four major stakeholders in relation to the
succession may influence the strategic design of leadership succession in advertising
agencies: owner-managers and non-family employees shape the two main groups of important
stakeholders, whereas media and clients come to add their own input on the issue of
succession.
This research project is based on the insider-researcher’s professional experience in
advertising over the past 24 years and intends to link critical issues with real-world problems
that Cyprus’s small family firms face in this professional environment. In the process of
designing and developing this project, previous professional and personal learning, as well as
access to data sources thanks to the managerial position the researcher holds at Contact
1