LEADERSHIP LEGITIMACY AND DAUGHTER-SUCCESSORS OF FAMILY BUSINESSES

Abstract

With the increasing acceptance of women in leadership positions, more daughters are being appointed to take over family businesses from their, typically, father-owners upon retirement. However, daughter-successors face significant challenges, particularly in establishing their legitimacy as family business leaders. Leader legitimacy is critical for any organization’s success and is especially vital in family businesses, where smooth leadership transitions are necessary for long-term viability. Despite its importance, why daughter-successors struggle to gain leadership legitimacy and how they can do so is under-researched. This study addressed two research questions: (1) Why is it difficult for daughter-successors to achieve legitimacy as family business leaders? and (2) How can daughter-successors negotiate their legitimacy as family business leaders? Semi-structured interviews were conducted with fifteen daughter-successors who inherited their family businesses from their fathers. Using a critical realist methodology and integrating social constructionist feminist theory and patriarchy as a theoretical lens, the study explored the social structures and mechanisms impacting daughters' leadership legitimacy. Findings revealed that societal gender norms and embedded patriarchal structures prevent daughter-successors from being viewed as legitimate leaders. Gender norms construct leadership as masculine, portraying daughters as lacking the traits needed for the role. Patriarchy within the business world compounds this problem, fostering the perception that daughters are “non-natural” leaders. The daughter-successors used several key strategies to overcome these obstacles and negotiate their legitimacy. First, they focused on gaining status by highlighting their education and experience while proving their competence and dispelling notions of nepotism. Second, they adopted a masculine, take-charge leadership approach by asserting authority and dismissing detractors while simultaneously implementing a feminine, collaborative management style that aligned with their femininity. This dual approach helped them construct a leader identity, enhancing both their self-perception and external recognition as leaders. Finally, they strategically managed the “father paradox” by using endorsement from their fathers, necessary to gain leadership legitimacy, while simultaneously encouraging them to exit the leadership role. This research highlights the link between gender and leadership legitimacy in family businesses, offering practical strategies for daughter-successors, their families, and women leaders in general to address legitimacy challenges and promote inclusive leadership.