'Succession planning in
family SMEs'
Small Business and Entrepreneurship
Master of Business Administration
April 2011
Author: Company:
Frederike Rollerman Ruurd & Bob Voorneveld
Kraneweg 22a Pop Dijkemaweg 31c
9718 JR Groningen 9731 BB Groningen
f.rollerman@student.rug.nl ruurd@voorneveldarchitectuur.nl
bob@voorneveldarchitectuur.nl
University:
First supervisor: Chris Streb c.k.streb@rug.nl
Summary
The organisation Voorneveld Architectuur would like to know which strategy is best to follow in the future. Since this is a family Small and medium enterprise (hereinafter referred to as ‘SME’) where the son will take over from the father, succession planning is the best way to guide the organisation to the future.
The introduction mentions different aspects of the organisation Voorneveld Architectuur and also the way of researching becomes clear. First the already existing literature was reviewed, this to find out what already is written about succession planning in family SMEs. To see whether this information can be used in practice, the organisation Voorneveld Architectuur has been researched.
Since there is not a real problem existing in the organisation, a pilot study is performed to find out where the main differences are between the clients and the business owners. The chapter about this pilot interviews is combined with the theory about the important subjects found, the methodology of this pilot interviews and also the findings, discussion and conclusions of these first round of interviews. Shortly, it can be said that chapter about the pilot interviews stands on his own and includes all the elements and chapter titles that are also included in the thesis.
In the literature review, the already existing theory on succession planning in family SMEs will be discussed. Literature about family businesses, succession planning and succession planning in family businesses are stated. The most important finding are the facts that mostly the literature about succession planning in family SMEs discusses the internal stakeholders. The cooperation between the incumbent and the successor, together with the fact that all the employees of the organisation, should be included in the succession planning to secure the future state of the firm.
The internal part is copied from the article of Sharma et al. (2001) since this is a good representation of the existing theory about succession planning in family SMEs. The external part is formulated based on the findings from the pilot interviews. A complete conceptual model was developed that can be used by family SMEs which deal with succession planning, together with the explanations of the hypotheses.
To test the hypotheses about the external stakeholders, a case study has been performed among clients, persons from the retail service organisation and the business owners. Since more information was known about the existing literature and how this is used in practice by Voorneveld Architectuur, a more in debt list of interview questions could be developed. In the methodology the exact steps of how the qualitative research is been performed are explained.
The findings from this qualitative research among clients, the retail service organisation and the business owners, resulted in the findings that are summarised in matrices. The most important answers of the target groups are integrated in the matrices which are developed from combining the key words used in the matrices. This way a clear view of the opinions of the different target groups are shown in the tables.
In the analyse, the findings of the interviews are further elaborated. A distinction is made between the current situation where the strongest and weakest points are discussed and the future situation where the succession is part of. Also the hypotheses are discussed based on the statements from the interviewees, the overall outcomes are stated but also quoted form the interviews are used to discuss the hypotheses.
Also the conclusion and the recommendations towards family SMEs in general that deal with succession planning and also towards the researched organisation Voorneveld Architectuur are described. Despite that there was not a research question in the beginning of the research; the general issue that has been dealt with during this thesis was the following.
What factors should be taken into account when dealing with succession planning of a family SME to secure the future state?
As can be concluded from both the existing literature combined with the results from the pilot interviews and the case study, both the internal and the external stakeholders should be taken into account by family SMEs that deal with succession planning. The practical recommendations towards family SMEs dealing with succession planning in general and specifically towards Voorneveld Architectuur are also stated in this chapter.
Preface
This report is my graduation paper for the the study Business Administration, and specifically for the master Small Business and Entrepreneurship of the University of Groningen. There were several options for writing this thesis; research something by yourself, research something in collaboration with a teacher or research something in collaboration with a company. I have chosen for the last option since I liked the idea that my thesis would not only add something to the already existing literature, but also would be used in practice by a business. Also the fact that I could have a look inside a small business and experience how such a company operates in practice, was an encouragement to choose this option.
The company Voorneveld Architectuur did not really had a problem which needed to be researched, but since they do want to create a secure future state they were searching for someone that could inform them about a future strategy. As both the owners mentioned in the beginning of my thesis: ‘Before the problem arises, as a business you should know how to deal with the obstacles that could develop in the future’.
As a neutral party I was able to collect a lot of information that was of great value to the business owners. By interviewing the business owners, but also their clients and people from the retail service organisation I gained information from a practical point of view. The literature already published about succession planning in family SMEs therefore could be compared to the findings from the researched firm Voorneveld Architectuur. I have experienced this combination of theory and practical information as very instructive.
I want to thank some people who have had a contribution to this thesis. First of all the business owners from Voorneveld Architectuur, Ruurd and Bob who gave me the opportunity to do my research at their company. In the beginning the research question was not really clear, though they cooperated along the whole process by participating and giving me the information I needed. I would also like to thank the clients and the persons from the retail service organization who were willing to cooperate in the interviews.
He made sure that I would not only pay attention to the practical side, but especially kept the theoretical focus in mind. He helped my by giving helpful feedback and useful information during the whole process.
Furthermore I would like to thank my family and boyfriend who encouraged and supported me, not only during this thesis but also during the total study of Small Business and Entrepreneurship.
I hope you enjoy reading this thesis about succession planning in family SMEs and also that it is a guidance for Ruurd and Bob, that they can use it to deal with the succession and develop their strategy to create a secure future state.
Table of content
1 Introduction ...9
1.1 Company background...9
1.2 Research background...9
1.3 Problem statement...10
1.4 Design of the research...11
2 Pilot study ...12
2.1 Introduction...12
2.2 Literature review...12
2.2.1 Strategy...12
2.2.2 Competitive advantage...13
2.2.3 Key success factors...16
2.2.4 External analysis...16
2.2.5 Internal analysis...17
2.2.6 Qualitative research...18
2.2.7 Quantitative and mixed research...19
2.3 Methodology...19 2.4 Findings...21 2.4.1 Strengths...21 2.4.2 Weaknesses...22 2.5 Discussion...23 2.6 Conclusion...23 3 Literature review ...24 3.1 Family businesses...24 3.2 Succession planning...26
3.3 Succession planning in family businesses...27
4 Conceptual model ...30
4.1 Internal versus external stakeholders...30
4.2 Conceptual model...31 4.2.1 Hypotheses...32 4.2.2 Hypotheses researched...38 5 Methodology...40 5.1 Exploratory research...40 5.2 Grounded theory...40 5.3 Case studies...40
5.4 Research process and methodology applied...41
5.4.1. Preface...42
5.4.2. Introduction...43
5.4.3. Interview questions...43
5.4.4. Supporting elements...43
7 Analyse...51 7.1 Current situation...51 7.1.1 Strongest point...51 7.1.2 Weakest point...51 7.2 Future situation...52 7.2.1 Succession...52 7.3 Hypotheses...53 8 Discussion ...58 8.1 Theory...58 8.2 Case study...58 8.3 Hypotheses...58 9 Conclusion ...65 9.1 Conclusion...65
9.2 Recommendations towards family SMEs dealing with succession planning...66
9.3 Recommendations towards Voorneveld Architectuur...67
10 Limitations ...68
References...70
Appendixes ...78
Appendix I: A practical framework...78
Appendix II: Organisational chart ...79
Appendix III: Interview questions pilot interview ...80
Appendix IV: Hypotheses and the interview questions ...84
Appendix V: Interview questions case study ...87
1 Introduction
Voorneveld Architectuur would like to know which strategy is best to follow in the future. This to gain a competitive advantage compared to the competition, also a secure future state is a goals that should be reached by this research. As Bob will take over the company in the future, succession planning will be the guidance towards the future.
Reading articles about this subject, it seems like everything is already researched and written down. This is because all of the existing theory discus topics by focusing on the internal stakeholders. Even in the most recent articles, the same subjects are discussed as in the theory from ten years ago. By doing a pilot study and a case study in a family SME it became clear that there is a whole new side to succession planning that has not been researched before. This thesis will discuss the already existing literature and information and new inside that becomes clear from the information founded in practice.
1.1 Company background
This thesis studies the organisation Voorneveld Architectuur and in specific the way they operate in the market and deal with their clients. Succession planning is an important part of this thesis because in the future Ruurd will retire and Bob will take over the organisation.
Voorneveld Architectuur is an architect established in Groningen. Their main proceedings include designing the internal radiation and the interior, their specific field in which they operate are small and medium enterprises (SMEs). They also accompany the whole process to be sure that the client has one central contact point, and also watch over the way the design will be brought into the shop.
Ruurd Voorneveld has started Voorneveld Architectuur 25 years ago as an entrepreneur operating on his own. In September 2008, his son Bob Voorneveld has entered the organisation and is fully cooperating since then.
1.2 Research background
This is one of the reasons why they want to get a clear view on the current way of communicating and cooperating with their clients. Ruurd has started the organisation on his own and has developed his own strategy in the years.
The owners want to know if this is the right approach or maybe the clients are more satisfied with a different approach. Secondly, almost all of the clients are obtained by word of mouth. The owners are aware of the fact that this way of acquisition means a high rate of dependence on those clients that should be able to find Voorneveld Architectuur. Third, Voorneveld Architecture is operating throughout the whole country which means that there are many competitors, both small and big organisations. Fourth, Voorneveld Architectuur is getting about 80% of their clients through the retail service organisation Euretco. Many small business owners in the segments fashion, living and sports are associated with Euretco.
On the other hand they have contracts with organisations like Voorneveld Architectuur which they recommend to the associated business owners. This means that there is a great dependency on this retail service organisation to get new clients.
1.3 Problem statement
Voorneveld Architectuur has many clients who they currently work with and also clients who they will work for until January 2012. This means that there is enough work and Voorneveld Architectuur is doing very well. Shortly, there is a security and there is not really a problem which should be solved. Though they are looking which strategy is best to follow to get a secure and stable future state and want to know which way the succession planning can best be structured.
Voorneveld is a small company, only existing of two business owners. The suppliers Voorneveld Architectuur is cooperating with, and the clients of the company are both external parties. The existing literature about succession planning mainly writes about internal stakeholders, this differs from the researched organisation Voorneveld Architectuur. Therefore this research will be to test whether both the internal and external stakeholders should be taken into account when dealing with succession planning.
1.4 Design of the research
A well and precise defined research question is important to be able to solve the problem Voorneveld Architectuur is dealing with. To get this well established problem statement, interviews and literature will be used.
This research will be done in two parts, chapter 2 is about the pilot interviews. In chapter 2.1.1 therefore the existing literature about strategy will be discussed first, what is already known about the subjects of organisations looking towards the future. Here can be thought about competitive advantage and key success factors to outperform the competitors in the market. A pilot interview (chapter 2) will be held to make clear what the research gap will be. The interviews will be held among both the internal and external stakeholders, namely the business owners, clients and the retail service organisation. The results will make sure that the focus will be on the right part of the strategy. Chapter 3 will be about the literature review, here the focus will be on succession planning. The outcomes of the pilot interviews are the basis of the theory discussed in this chapter, especially known facts about family businesses and succession planning in these type of organisations are explained.
The combination of the facts founded in practice from the pilot interview, together with the theories founded in the literature results in chapter 4. The conceptual model will be presented here as well as the hypotheses about both the internal and external stakeholders will be discussed. Hereafter the methodology can be found in chapter 5, where the way of researching is explained. Especially the research design and procedures will be described. The findings from the case study interviews are presented in matrices, these can be found in chapter 6. These results that are founded from the interviews are analysed in chapter 7, here the most important findings are summarised. Also the hypotheses as stated are discussed with the help of the overall findings from the case study, but also specific quotes from the interviewees are used to express the opinion of the clients, retail service organisation and the business owners. As already mentioned, it became clear from practice that new results and facts are founded from practice compared to the already existing literature. The contrasts are compared in chapter 8 where the discussion can be founded.
2 Pilot study
As already explained in the introduction, Voorneveld Architecture does not really have a problem at the moment. They are willing to create a strategy to work more efficient and effective to gain a competitive advantage. A pilot interview among several clients and the retail service organisation may give inside to the main problems. This can be analysed and researched further.
2.1 Introduction
The most important when choosing the sample size for a pilot interview is to look at the population of interest. There is no general minimum sample size from where the pilot study can be called reliable. As Johanson & Brooks (2009) state, samples are needed that are both representative of the population and sufficiently large. When pilot studies use homogeneous samples they may not represent the population which is wished to be studied, this may lead to biased outcomes.
2.2 Literature review
Voorneveld Architectuur would like to know which strategy is best to follow in the future, mainly because Bob will take over the company from Ruurd in the coming years. They want to gain a competitive advantage compared to the competition, also the needs and wishes of the clients are important because Voorneveld Architectuur is depended on them. The retail service organisation Euretco is also of influence, because they are an important link in the organisational chart (Appendix II).
2.2.1 Strategy
The basic of strategy is that at the most basic level, the actions and decisions need to be analysed and taken into account. This is needed for the organisation to survive and thrive as conditions develop and change around it. Strategic planning is the process where the firm organises their internal resources and actions related to an external environment. This to achieve its goals or objectives, following McGee et al. (2005).
As Hambrick (1989) mentions, the firm must develop strengths that match the key success factors in its industry. The key success factors are those tasks or attributes that the environment particularly mandates.
McGee (2005) states that strategic thinking begins with a good business model that analyses the economic relationships central to achieving the organisation's purpose. Strategies have to be planned 'inside-out', which means that from the inside of the organisation out to its external environment like markets and industries. Feedback from clients and demand could be useful for identifying additional competences which might be needed.
Feedback is needed to get information to analyse both the internal and the external environment. In the external environment, an organisation has to question itself 'what is happening around us'. The internal environment means that the organisation needs to analyse and identify its key resources and capabilities, the impact of these on the competitive advantage should be evaluated (McGee, 2005).
2.2.2 Competitive advantage
As McGee (2005) states, a range of competences which the organisation has developed can be used to gain an advantage over the competition. Strategists can build and mobilise resources, which can bring great rewards to the organisation if they are unique enough.
According to Prahalad and Hamel (1990) core competence is the ability to produce something that clients do need but have never imagined. Following McGee (2005) there are three characteristics of a core competence. They should:
1. Provide potential access to a wide variety of markets;
2. make a significant contribution to the perceived clients’ benefits of the end product; 3. and be difficult for competitors to imitate.
A competitive advantage can become a sustainable competitive advantage according to Barney (1991). An advantage can be called a competitive advantage when the value creating strategy is not being implemented by any current or potential competitor. When firms are also unable to duplicate the benefits of this strategy, the organisation has a sustainable competitive advantage. Following Lippman and Rumelt (1982), a competitive advantage is only sustained if it continues to exist after trying to duplicate the advantage that have ceased.
According to Barney (1991) to have the potential of gaining sustained competitive advantage, a firm’s resource must have the following attributes:
1. It must be valuable; exploit opportunities and neutralise threats in the environment; 2. it must be rare among a firm’s current and potential competition;
3. it must be imperfectly imitable;
4. and there are no strategically equivalent substitutes that are valuable, rare or imperfectly imitable.
Valuable and rare organisational resources can only be sources of sustained competitive advantage when firms that do not use these resources cannot obtain them. Lippman and Rumelt (1982) call these resources imperfectly imitable when the competitor’s ability to obtain that resource depends on unique historical conditions, when the resources are taken for granted so the link between the resources and the sustained competitive advantage is not understood, or the resources are socially complex which stands for the interpersonal relations among managers, a firm’s culture and a firm’s reputation among suppliers and clients. The fourth attribute stated by Barney (1991) is substitutability, two valuable firm resources are strategically equivalent when they can be exploited separately to implement the same strategies. Shortly, when there are strategically equivalent resources it suggests that competitors can implement the same strategies, but in a different way with different resources. To gain a competitive advantage, these resources should also be valuable, rare and imitable.
According to the resource-based view, organisational culture can be a strategic resource that generates a sustainable competitive advantage (Barney, 1986). Promoting learning, risk taking and innovation are used to achieve this, following De Long & Fahey (2000). As Dierickx & Cool (1989) state, the cultures of family firms are difficult to imitate. The family history, dynamics and the organisational culture cannot be easily developed.
Fredrickson & Mitchell (1984) explain that the formal and informal strategy making are not substitutes of one another. Formal processes are effective in some settings and ineffective in others, informal processes are effective where formal processes are not and are ineffective when formal processes are effective. Therefore informal strategy-making processes may be a source of sustained competitive advantage. Klein & Leffler (1981) state that positive firm reputations are informal social relations between firms and key stakeholders, this can be a source of competitive advantage because it is socially complex.
2.2.3 Key success factors
Following McGee (2005) the key success factors mean 'what do we have to do to succeed?'. The analysis can be divided into two pieces of analysis; the analysis of the client demand on the one hand and the analysis of the competition on the other side.
As Hambrick (1989) states, a firm must develop strengths that match the key success factors in its industry. This because these organisations will have a higher performance than those whose strengths do not match. It seems to 'pay-off' for an organisation to have the strengths that the environment states as critical, these factors can make sure the competition will be outperformed. McGee (2005) states that an analysis is needed, both of the clients and their demand but the competition should also be analysed. When combining outcomes of both analyses, the key success factors will be the outcome.
2.2.4 External analysis
The basics of strategy state that actions and decisions need to be analysed and taken in order for the organisation to survive and thrive as conditions develop and change around it (McGee, 2005). These conditions are the goals and resources of the organisation, but also the external environment is of influence.
Looking at the formal analysis, this would go through a number of stages whereby in one of the stages the external environment will be reviewed. The external environment is the basis where the organisation organises its resources and actions, this to achieve its goals and resources (McGee, 2005).
Firms compete on two levels, one of these levels is the marketplace where clients compare the rival offerings and make choices. By doing so, prices emerge from these market processes (McGee, 2005). The other competition level will be discusses in the internal analysis.
The third and last region is the institutional and social context, here the rules in terms of moral, legal and ethical possible options are set out. Also the political terms of reference within which firms are obliged to operate are part of this section. The firms have most influence in the market structure, least in the third region of institutional and social context. As Hambrick (1989) states, a firm must develop strengths that match the key success factors in its industry. This because these organisations will have a higher performance than those whose strengths do not match. It seems to 'pay-off' for an organisation to have the strengths that the environment states as critical, these factors can make sure the competition will be outperformed. McGee (2005) states that an analysis is needed, both of the clients and the demand but the competition should also be analysed. When combining outcomes of both analyses, the key success factors will be the outcome.
2.2.5 Internal analysis
As mentioned at the external analysis, firms compete on two levels (McGee, 2005). The second level is internal, they compete through their plans and investments for the future. By doing this, the organisation construct assets that they hope can distinguish themselves from the competition and offer distinctive products.
The formal analysis, which is also mentioned at the external analysis above, also includes a review of the internal analysis. This covers the strengths and weaknesses, but also the core competences and capability assessments (McGee, 2005).
2.2.6 Qualitative research
When research will be done among stakeholders, this means that questions are asked to the specific target group. The way of questioning should be considered because this will influence the kind of answers which can be expected. When weighing open or closed questions, the goal for which the pilot study will be used should be taken into account. Theory about qualitative and quantitative research will be explained, the choice of research for the pilot study will become clear in this part.
Qualitative researchers do not start their study with a hypothesis that they set out to find support for testing. Qualitative research is started by using specific situations, where after patterns or themes in the data are founded, a tentative hypothesis is established and finally the theories or conclusions are developed. The data are collected through extensive and detailed field notes, observations, interviews and focus groups with the participants in a natural setting. The interviewer does not control or manipulate the environment. Qualitative studies typically have small sample sizes which allow the researcher the time and opportunity to have interactions with the participants. This has the advantage that the researcher has investigated a topic in-depth and the outcomes are based on the participants' perspective, so a holistic picture of the situation is created (Bui, 2009).
The interviews that will be held exist of open questions, this way the client has the possibility to give extensive answers. A clear view of the situation will arise because there will be a conversation between the interviewer and the interviewee, ambiguities can be asked and discussed directly.
Qualitative research is the type of research that produces findings that are not obtained from statistical procedures. It is called a non-mathematical process of interpretation to discover concepts and relationships in raw data by interviewing and observations. Qualitative research can be used to understand the meaning of experience of persons, what they do and think. Little is known about it and qualitative research can be used to obtain the details about feelings, thought processes and emotions (Strauss & Corbin, 1990).
Qualitative studies are undeniable, they are concrete, meaningful and are convincing to the reader. Qualitative research consists of three components, the first is the collection of data which can founded by different sources done by interviewing, observations and other documents. Secondly the data are reduced, the categories are elaborated and they are related to the prepositional statements.
The third component following Strauss & Corbin (1990) include the written and verbal reports, here can be thought about articles in scientific journals or in books.
2.2.7 Quantitative and mixed research
Looking at Creswell (2003) two other possible research approached are the quantitative approach or the mixed approach. Both are not usable for this way of researching, because of the way the data will be collected. The quantitative approach is about instrument based questions, statistical analysis and the questions are closed. The information that is collected is analysed using statistical procedures and hypothesis are tested. The quantitative research is not applicable because it are questions with structured questions and behaviours which are rated. The other possible kind of research is the mixed approach, this is a combination of both the quantitative and qualitative approach. So it is a mix between open-ended and closed questions, it is also a combination of statistical and text analysis. When using this type of research, it is assumed that the diverse types of data collection provide the best understanding of the research problem. Because in this pilot interview only the open-ended questions are used to get much information and a broad view on the problem, the mixed approach will not be used.
2.3 Methodology
To have a reliable and clear sample, it is important to have a specific look at the sample size and also who will be asked to cooperate with the pilot interview. The concept of choosing a population is crucial, because that will define the set from which the sample will be drawn. As Eisenhardt (1989) states, the selection of an appropriate sample controls the variation and also helps to define the limits for the findings.
In total Voorneveld Architectuur has about fifteen clients a year, so to get a good representation of this amount a sample size of three clients is chosen. Also one of the two contacts from the retail service organisation will be asked to cooperate.
Of course also both the business owners will be questioned. The expectations, needs and wishes of the clients can be compared with the future vision of the business owners. This way the real problem which should be solved to create a secure future state becomes clear.
The people from the retail service organisation are the link between Voorneveld Architectuur and most of their clients. Shops are associated with the retail service organisation Euretco because they have a lot of benefits, especially because many shops are cooperating together they are stronger together and have more influence. Purchasing benefits, exchange of knowledge and sales cooperation are some of the advantages of being part of the retail service organisation. Euretco is working together with about 14.000 entrepreneurs and franchisers, they exploit almost 2.000 shops in the branches living, fashion and sports. Al this facts and information can be founded on the website of the organisation Euretco. The retail service organisation also will offer advantages like workshops, information and advice.
The pilot interview is a first step in the research, because this way a research gap can be founded. The questions of the pilot interviews with the business owners, clients and people from the retail service organisation can be found in appendix III. The outcomes of the pilot interviews can be used to develop a research question which can be answered by having a further in-depth look in the theory. Also interviews with more focused questions among a greater group of clients will give a closer look at the formulated question.
The clients that are chosen are different from each other to get a wide view of the market in which Voorneveld Architectuur is operating. The clients differ from each other looking at the amount of branches that are already redesigned by Voorneveld Architectuur. Boven Menshop is a clothing store which has several branches, not all of them are operating under the same name because the different segment and style. The owner is a client of Voorneveld Architectuur for a long time, many of the stores are already been restyled by the architect.
Elinga modeis a clothing store which has two branches, one for women and one for men.
They have worked with Voorneveld Architectuur three years ago and are planning to restyle the shop very soon. A small change update both the inside and the outside of the shop will keep the store up-to-date. Van Keulen men's fashion is a new shop in the portfolio of Voorneveld Architecture, there is only one branch. The entrepreneur wants to expand his shop in the future which is a great opportunity for Voorneveld Architectuur to get a possible follow-up assignment.
2.4 Findings
The most important outcomes of the interviews with the business owners on one side and the retail service organisation and the clients on the other side will be discussed here. The questions asked to the three different stakeholders can be found in appendix III.
There were several questions asked, but especially the strengths and weaknesses are important and interesting. The pilot interviews were developed to get an inside into the organisation Voorneveld Architectuur and the opinion, wishes and needs of the clients of Voorneveld Architectuur. This way the difference could become clear so a view of the future strategy could be developed. To ask about the strengths and weaknesses of Voorneveld Architectuur, the clients give the pros and cons of working with Voorneveld. A future strategy should implement these remarks.
2.4.1 Strengths
The creativity of the business owners is very important, since this is the reason the clients choose Voorneveld Architectuur, as the clients mention. The designs are well developed and the opinion of the client is well implemented. The fact that the client is been directly involved in the design is a pro which all the clients mention, they are asked to make a mood board so their own ideas, wishes and needs can be implemented in the design Voorneveld is making. The personal contact between Voorneveld Architectuur and the clients is very informal, which is a strong point. Also the fact that clients know that they talk to the same person every time is good compared to the big competitors which have a different person for every task and step during the cultivation.
This results in a trustful relationship between both parties, the client trust the business owners when they come up with some adoptions which have to be taken during the cultivation. The opinion of Voorneveld Architectuur is an important guide for the client before and during the cultivation.
2.4.2 Weaknesses
Organisational and methodical are points which Voorneveld Architectuur needs to improves itself. Because they are working with several clients at the same moment, sometimes things are forgotten. Not only does Voorneveld Architectuur design the new interior of the shop, but also they watch over the whole project. This to make sure that the drawed design will be developed well.
Especially the last point is mentioned as less important by the clients, they choose Voorneveld Architectuur because of the good designs they make. The rest of the process where Voorneveld Architectuur also has much influence and contacts, is less important according to the clients. The lack of the organisation can sometimes cause a delay which costs money and time, this is something the client state as a weaker point. The focus should be more on the designing part.
2.5 Discussion
From the pilot study it becomes clear that there is a difference between the way the business owners of Voorneveld Architectuur are operating and looking towards the future and the opinion of the advisory future strategy that the clients and the retail service organisation mentioned in the interviews on the other side.
Voorneveld Architectuur exists of only two persons, the incumbent Ruurd and the successor Bob. They do not have any employees, but work with suppliers depending on the assignment they receive from a client.
The client's wishes and needs will be taken into account when designing and also when looking for possible suppliers. Voorneveld Architectuur depends for a great amount on the suppliers and clients which are external stakeholders. The pilot interviews have been conducted to get a clear view of the research gap and question, but also some vulnerable information is gained from the interviews. The client especially will choose for Voorneveld Architectuur again and also recommend the organisation by word-of-mouth when they are satisfied.
2.6 Conclusion
There are some weaknesses which the clients indicate like the planning and organisation, but on the other hand the strengths of Voorneveld are more important. The clients which Voorneveld Architectuur has worked with are the most important connection to new clients by word-of-mouth recommendations. Trust, sympathy and creativity outweigh the lack of organisation and information towards the client.
3 Literature review
Looking at chapter 2, where the literature is combined with the outcomes of the pilot interviews, it becomes clear that the organisation Voorneveld Architectuur does not have a real problem. Though to be able to secure this stable position in the future, the information from the pilot interviews in combination with the existing literature will result in the fact that succession planning is a good and useful tool. Succession planning is an often used format to develop this secure future strategy for family SMEs, especially when the business will be taken over by a family member. In this chapter the literature known about family businesses, especially SMEs and the theory written down of succession planning will be discussed.
3.1 Family businesses
A family business is a business that will be passed from one generation to another (Ward, 1987). As can be seen in the article of Chua et al. (1999), there are many definitions of family businesses whereby the differences between those definitions are mostly about the ownership and management. Also there are different opinions about who should have the ownership, the ownership can be in the hands of more than one extended family but also when the public owns the business, it is still called a family business. Lansberg (1983) writes that researchers believe that the family component shapes the business in a way that is different from that of the executives of a non-family businesses. Family businesses are unique because of the pattern of ownership, governance, management and succession. As Lansberg (1988) says, family relationships need to be realigned, the traditional patterns of influence should be developed and redistributed, new structures should be developed in management and ownership. All of these factors influence the firm's goals, strategies, structure and the manner in which these are formulated, designed and implemented.
As Chua et al. (1999) therefore state is that a business is a family businesses when both (1) a family-controlled dominant coalition has shaped the current vision or the intention it that they will pursue a new vision and, (2) the intention or behaviour is potentially sustainable across generations.
Drozdow (1989) mentions that often the senior generation will provide experiences that help the junior generation to learn how the business works, but they fail to provide this younger generation with the skills to recognise new opportunities and to develop new strategies to take advantage of these opportunities.
Burgelman (1983) states that group orientation in family firms has several positive benefits for the entrepreneurial company. Cooperation and collaboration increases the decision-making processes in the company, which can be a source of competitive advantage. The group-oriented family businesses reward their individuals when they share knowledge by collaborating and cooperating, the sensitive data that are gained this way create trust which encourages the entrepreneurship. Internal cultural orientation is looking specifically at the information and knowledge within the firm's boundaries, according to Zahra (2004). External cultural orientation on the other side, place greater value to the signals from the external environment. Important sources of information and identification of organisational problems are clients, competitors, suppliers and markets. Von Hippel et al. (1999) describe that the unique knowledge from these informants can lead to product breakthrough and service innovations. When a family firm deals with short-term time orientation, they only support those projects with an immediate high potential payback. Financial rather than strategic controls are the focus of the entrepreneurial organisation, according to Zahra (2003). Strategic control reflects the long-term time orientation where the entrepreneurial activities are chaotic and unpredictable (Kanter, 1983). Therefore understanding of the risks involved is needed from the employees, the longer-term orientation is positively associated with higher levels of entrepreneurship.
Entrepreneurial activities increase the ability to be distinctive in the produced products, which has an enlarging effect on the profitability and growth. As Zahra (2003) mentions, it is important for family firms to innovate and also aggressively pursue the entrepreneurial activities.
3.2 Succession planning
Succession is a multiple-stage process, following Handles (1990). According to Fiegener et al., (1996), no event in the life of an organisation is more critical than the transfer of power and authority from the incumbent CEO to a successor. As Paradise (2010) states, succession planning is the process of identifying key positions, candidates and employees who are needed to meet the challenges that an organisation faces in the short-term and long-term. CEO transition is a lengthy succession process that encompasses numerous activities undertaken in preparation for the transaction (Longenecker and Schoen, 1978; Handler, 1990). The most popular driver (87%) of succession planning is to identify and prepare future leaders. The second most important driver with 74% is to assure business continuity (Paradise, 2010). As Bruce and Picard (2006) state, only 35% of SMEs have a plan when the owner is retiring in the future. This can be for example plans regarding selling, transferring or winding down. When a succession plan is developed, requirement is asked from internal stakeholders like key managers, employees and the successor and professionals like accountants and lawyers.
Succession plans exist of technical issues like the legal transfer of the ownership, the financing of the successor but also the future profits. On the other hand Bruce and Picard (2006) mention the soft issues, for example long-term personal and family goals, the communication and the role of each after the succession.
There are some barriers for succession, according at the article of Bruce and Picard (2006), since the owner has a strong personal attachment with the business and is not willing to change. Also the time that is left to plan the succession is a reason for many business owners to not start planning, as professional advisers state: it is never too early to start planning. Failing successions are therefore a result of lack of adequate time to plan. The failed succession can cause many risks for the organisation, which should be turned into opportunities for the owners, their employees and the economy.
For the organisations which do have a succession plan, it is important that they review and update these plans on a regular basis. This to reflect the changes within the company. As Anderson (2010) states that firms will get vulnerable when they fail to have succession plans. These organisations will be depending on changes related to retirement, health issues among the leaders, partner defections and the loss of interest in management among the partners. There are some rules given which help to implement succession into the strategic plans. Communication is hereby the main important factor in order to take fear away and to ensure that everyone in the organisation is on board. Succession planning should become part of the firm's strategy, so it should be implemented in the internal organisation. Another key factor is to build leadership and coaching skills among the potential successors, their motivation and increase the level of engagement.
3.3 Succession planning in family businesses
In the family business literature, succession means the transfer of leadership from one family member to another. This is a goal which is shared by a majority of family firms according to Sharma et al. (2003). As Chua et al. (1999) mention, if the family believes that the incumbents' retirement will not happen in the short term, the concern about succession issues will not be high. The age of the firm will influence the knowledge about the difficulties of succession, when the business will exist for a longer time the probability that a cousin will be involved in the succession instead of a sibling will grow.
When the third generation is taking over, it is possible that they operate less efficient and effective because they feel less connected to the business compared to their predecessors. Diversification in sales will increase as a firm will progress in its life cycle, the number of sectors in which the business is operating, the number of client types and the number of activities are all increased as the start is compared to the growth or the growth is compared to maturity (Masurel and Montfort, 2006). Looking at the architects, at the start the organisation will most of the time only consist out of architects. During the life cycle, fewer architects and more support employees join the staff which can make the labor division within the firm more efficient. When the life cycle goes from maturity to decline, the organisation goes back to the start-up phase where the architects will operate on their own again.
Churchill and Hatten (1987) developed a life-cycle approach, the succession process between father and son is described this way. The authors especially focus here on the cooperation in a family business. Four stages are distinguished:
1. A stage of owner management, the owner is the only family member directly involved in the business;
2. a training and development stage, the successor learns the business; 3. a partnership stage between father and son;
4. a power transfer stage, responsibilities will be transferred to the successor.
The cooperation of the incumbent and the successor is required for a smooth succession (Churchill and Hatten, 1987).
Successors must gain credibility with both internal and external stakeholders when they want to lead the company in the future, as Barach et al. (1988) mentions. Family-firm CEOs are less involved in interactions between the successor and the internal stakeholders than CEOs of non-family firms. On the other hand, family-firm CEOs believe that managing the relations with the key external stakeholders is the most valuable preparation experience for successors. Family-firm CEOs believe that managing relations with both clients and vendors and also managing large projects, are the most important tasks experiences for successors (Fiegener et al., 1996).
Strategic planning is important because CEOs exert control over their business through this planning. Since CEOs are reluctant to change the strategy that they designed, family-firm CEOs rate the strategic planning least important in preparing the successor to take over the business. This because these CEOs feel responsible for the wealth and life-style of their family (Ward, 1988). Davis (1982), Handler (1989) and Kepner (1983) state that the incumbent most of the time has inability to 'let go' which is the single largest problem in succession.
4 Conceptual model
From the literature it becomes clear that the theories written about succession planning, mostly mention the internal stakeholders namely the incumbent and the successor. On the other hand, from the pilot interviews it became clear that also the external stakeholders have a great influence on the strategy, especially in SMEs which deal most of the time with external parties instead of internal personnel. The existing theory about succession planning and the practical findings from the pilot interviews will be combined in this chapter.
Sharma et al. (2001) developed a conceptual model where only the internal stakeholders are included. This model is used because it represents the findings of many authors mentioned in this thesis. The model is expanded with external stakeholders who have an important influence on the future strategy of especially SMEs who are dealing with succession planning.
4.1 Internal versus external stakeholders
Freeman (1984) states that the importance of a particular stakeholder in influencing the direction, decisions and actions of the firm depend on that stakeholders' stakes, power, legitimacy and urgency. In the model of Sharma et al. (2001) it can be seen that only the internal stakeholders are included. This is supported by the fact that Sharma et al. (2001) mention that the two stakeholders in succession are the incumbent and the successor, succession is the transfer of leadership from the one to the other. Looking at the article of Rothwell (2010), succession planning is a strategic change within an organisation by emphasing internal talent development. Bruce and Picard (2006) also mention that succession planning focuses on both the incumbent and the successor who is taking over the organisation.
Though Voorneveld works closely with clients and has many supplying parties, which results in a great dependency both parties. Therefore not only the incumbent and the successor have to change their internal strategy when dealing with succession, it is also important that the opinion, needs, wishes and advice from the external parties will be included in the new strategy.
4.2 Conceptual model
The conceptual model of above will be tested by defining hypotheses, these will be researched with the help of theory and information from the pilot interviews. The hypotheses of the internal stakeholders are formulated by Sharma et al. (2001), as mentioned above. Since most of the articles published about succession planning only mention the internal stakeholders as an important influence, the hypotheses one till five can be seen as an umbrella for the existing literature about succession planning. These hypotheses and their sub questions are copied from the article of Sharma et al. (2001).
As already mentioned, the external stakeholders are not often described in the existing literature about succession planning. The hypotheses six till nine and the sub questions are formulated due to the outcomes of the pilot interviews. The answers from the clients and the retail service organisation together with the answers of the business owners are origin for the hypotheses as can be read below.
4.2.1 Hypotheses
• H1: There is a positive relationship between the propensity of an incumbent to step
aside and family members' initial satisfaction with the succession process.
− H1a: A positive relationship exists between the trust of the incumbent in the capabilities and intentions of the successor on the one side and the incumbent's propensity to step aside on the other side.
− H1b: Between the intensity of the incumbent's interests outside the business and his/her propensity to step aside is a positive relationship.
• H2: There is a positive relationship between on the one hand the propensity of the
successor to take over the business, and on the other hand the family members' initial satisfaction with the succession process.
− H2a: Between the successor's perception of a fit between his/her career interests together with the family business and the successor's propensity to take over are positive relationship exists.
− H2b: The pay-offs from the family business and the successor's propensity to take over has a positive relationship.
• H3: There is a positive relationship between the extent to which a family firm engages in succession planning and family members' initial satisfaction with the succession process.
− H3a: The incumbent's propensity to step aside compared with the extent to which the family firm engages in succession planning can be stated as a positive relationship. − H3b:The relationship between the presence of an active advisory board and the extent
of succession planning the family firm undertakes is positive.
− H3c: The degree to which the family members agree to continue the business on the one side and the extent of succession planning undertaken on the other side are positively related.
• H4: There is a positive relationship between the degree to which the family members
agree to continue the business and family members' initial satisfaction with the succession process.
− H4a: The expected financial pay-offs from the business is positively related to the family members' agreement to continue the business.
− H4b: The level of family harmony that is perceived together with the agreement to continue the business among the family member is positive related.
• H5: There is a positive relationship between the degree to which family members
accept each other's role in the business and their initial satisfaction with the succession process.
− H5a: The perceived family harmony is positively related to the family members accepting each other's roles in the business.
• H6: There is a positive relationship between the cooperation of the client, suppliers
and the organisation and the family members' initial satisfaction with the succession process.
− H6a: There is a positive relationship between the good relationship with the clients and the cooperation of the client, suppliers and the organisation.
Bob and Ruurd have personal contact with their clients and also involve them during the realisation of their own project. This is done by giving the clients the instruction to make a mood-board with their own wishes and needs.
Ruurd Voorneveld (2010): 'Voorneveld Architectuur is such a small company, this means that the client always knows who they are dealing with. The bigger competitors of us have many people and all for different functions, which means that their clients are constantly dealing with different people.'
The fact that the clients know with who they are working makes sure that there is much personal contact and the quality of the project will be secured. When looking at the succession planning, the good relationship with the clients will positively influence to cooperation between all the parties involved. The clients know the successor Bob, who also knows the wishes and needs of the clients because he has gained experience over the years by being involved in the organisation.
− H6b:There is a positive relationship between the good relationship with the suppliers and the cooperation of the client, suppliers and the organisation.
Regarding the suppliers, Voorneveld Architectuur also has a close relationship with them. The suppliers do not have any employees, but only work with self-employed people who all take part of the cultivation. The good relationship with these self-employed organisations, means that the needs and wishes of the client can be taken into practice and can be changed on a short-term during the cultivation. Also the fact that Bob will take over Voorneveld in the future has an advantage, the suppliers known him and his way of working.
• H7: There is a positive relationship between the cooperation of both the incumbent and the successor on a project and the family members' initial satisfaction with the succession process.
Because the incumbent and the successor work together on the projects, they can stimulate and give advice to each other. Having such a healthy way of working means that they can complement each other. On the other hand, the negative aspect is that it is difficult to replace one of the business owners because they both focus on a different part of the cultivation process. When dealing with a succession planning, this is something which should be taken into account. Especially the learning part is very important in this case, which will be easy due to the fact that the incumbent and successor work closely together.
− H7a: There is a positive relationship between the sympathy of the clients towards the organisation and the cooperation of both the incumbent and the successor on a project. Bob and Ruurd work together on all the projects, they both do different parts during the cultivation. Ruurd does more of the designing part, while Bob makes the designs more visual by making them 3D with the computer. As De Vries (2010) states, the sympathy of the client towards Voorneveld Architectuur mostly exist because of their personal and informal way of dealing with the project and the clients. This positive reputation makes sure that clients recommendate Voorneveld Architectuur by word-of-mouth to others.
• H8: There is a positive relationship between the creative ideas of the organisation and
the family members' initial satisfaction with the succession process.
− H8a: There is a positive relationship between the trust of the clients towards the organisation and the creative ideas of the organisation.
During the project it is possible that Voorneveld Architectuur comes up with some changes compared to the design approved by the client. Because there is an informal way of communicating and there is a great amount of trust towards the business owners, these changes are easily adapted, as Van Keulen (2010) explained. The expertise and experience make sure that Voorneveld Architectuur is trusted by the clients as Boven (2010) mentions. He is sure that Bob and Ruurd have good ideas for their retail organisation, which give them the opportunity to develop some innovations and creative ideas during the project.
− H8b:There is a positive relationship between the cooperation of the suppliers and the creative ideas of the organisation.
The suppliers, with which Voorneveld Architectuur cooperate, are all self-employed organisations. These organisations are small and also have an informal structure with short lines, just like Voorneveld. This means that decisions can be taken in a short-term and also much can be discussed and decided during the project. The suppliers Voorneveld is working with during a cultivation all have different specialisations, this means that they can deal with specific questions and remarks. Due to this flexible situation with short lines, Voorneveld Architectuur is able to develop creative ideas during the project. In cooperation with the suppliers and of course the client, new ideas are discussed and encouraged. Van Mullem (2010) mentions that he hears from his clients that they like this informal way of deliberating and deciding on new ideas.
− H8c: There is a positive relationship between the cooperation of both the incumbent and the successor on a project and the creative ideas of the organisation.
• H9: There is a positive relationship between the word-of-mouth recommendation and the family members' initial satisfaction with the succession process.
Not only the clients are important for the word-of-mouth recommendations, also the retail service organisation has a great amount of influence. As Van Mullem (2010) explains, the retail service organisation has contact with all the retail organisations which are part of the organisation, they answer questions and give advice. When for example a retail business owner is planning to change his store, he will ask the retail service organisation which architect best can be contacted. When they are advised to contact Voorneveld Architectuur, this will positively influence the choice of the possible new client. When the succession will take place, Voorneveld Architectuur should be assured that these word-of-mouth recommendations will continue. Due to the fact that Bob and Ruurd are the organisation, it will not cost too much effort to keep the word-of-mouth recommendation high from both the clients and the retail service organisation, even when Bob will take over the company.
− H9a: There is a positive relationship between the satisfaction of the clients and the word-of-mouth recommendations.
When the clients are satisfied, their word-of-mouth recommendations will be higher than when they have some points of improvement. New clients are more easily obtained by good recommendations from colleagues than from Voorneveld Architectuur themselves. Van Mullem (2010) mentions that clients had a look at the already cultivated stores which will give possible new client a good view of the possibilities Voorneveld has to offer.
− H9b: There is a positive relationship between the sympathy of the clients towards the organisation and the word-of-mouth recommendations.
− H9c: There is a positive relationship between the good relationship with the clients and the word-of-mouth recommendations.
As already mentioned at hypothesis H9b, the relationship between the clients and the architects is of great importance for the way the word-of-mouth recommendations are spread. The personal and informal contact, and because the small amount of bureaucracy in both parties, will cause the quick changes and innovations that can be transited into practice (Van Keulen, 2010). The clients also have much influence on the design which has an important influence on the relationship with Voorneveld Architectuur (Voorneveld, 2010).
− H9d: There is a positive relationship between the creative ideas of the organisation and the word-of-mouth recommendations.
Clients who choose to work with Voorneveld Architectuur, state that the creativity of the business owners is an important strength which caused the cooperation (Boven, De Vries, Van Keulen, 2010). The client is involved during the project by for example making a mood-board to show his/her wishes and preferences (Ruurd Voorneveld, 2010).
Though the clients who need help, prefer creativity from the architects because they want to fully change their shop or store. The creativity of Voorneveld Architectuur will influence the ability to be distinctive from the competition. Potential new clients will also see this when visiting the store, which will positively influence their choice.
4.2.2 Hypotheses researched
As mentioned above, there are many hypotheses and sub hypotheses formulated, the information from the case study so far is also mentioned. The answers from the pilot interviews together with the already existing literature is the basis for these hypotheses. Especially hypothesis six till nine are formulated this way, since the external stakeholders are an influence on succession planning that is not researched and discussed before in the already existing literature. The statements from the different pilot interviews explain how these hypotheses are developed with the help of this case study.
The ‘italic’ hypotheses are part of the final hypotheses that will be answered, subsequently all sub hypotheses will indirectly be answered. What should be mentioned is that only the hypotheses of the external stakeholders will be researched, so number six till nine.
• H6: There is a positive relationship between the cooperation of the client, suppliers
and the organisation and the family members' initial satisfaction with the succession process.
• H7: There is a positive relationship between the cooperation of both the incumbent
and the successor on a project and the family members' initial satisfaction with the succession process.
• H8: There is a positive relationship between the creative ideas of the organisation and
the family members' initial satisfaction with the succession process.
• H9: There is a positive relationship between the word-of-mouth recommendation and
the family members' initial satisfaction with the succession process.
5 Methodology
This chapter will discuss the methodology of the research. This is a critical component, because it will describe in detail how the research is conducted and the design of the research. This is done so an independent person, who wants to redo the research, is able to use the steps described in this chapter (Bui, 2009).
5.1 Exploratory research
From exploratory research can be spoken when the study is undertaken with the objective either to explore or to investigate. The exploration of an area will be done when there is little known, on the other side the possibilities of undertaking a particular research study should be investigated (Kumar, 2005). A feasibility study, also called the pilot study, is usually carried out when the researcher has little or no knowledge about certain areas. As Kumar (2005) states, this small-scale study will be undertaken to research if it is worth to carry out a detailed investigation. Pilot studies are also used to develop, refine and measure different tools and procedures to be sure whether to go into debt or not. What Kumar (2005) also mentions is that when looking at the inquiry mode, two possible options can be chosen namely qualitative or quantitative research (Chapter 2.2.6 and 2.2.7).
5.2 Grounded theory
Strauss and Corbin (1990) state that grounded theory can be defined as theory that is derived from data which is systematically gathered and analysed trough the research process. The data collection, analysis and the eventual theory are in close relationship with each other. Grounded theory stands for an open mind towards the theory that will be founded, the theory can be drawn by putting together a series of data which are based on experience. The grounded theory is a guide to action. Glaser and Strauss (1967) explain their comparative method for developing grounded theory, they mention that the method relies on continuous comparison of both data and theory which begins with the data collection.
5.3 Case studies
A diverse combination of data is used to collect the information, for example archives, interviews, questionnaires and observations. The evidence that is used may be qualitative, in words, or quantitative, in numbers. Both these can also be combined to find the right evidence. Case studies can be used for different goals, namely to provide description (Kidder, 1982), to test theory (Pinfield, 1986) or to generate theory (Gersick, 1988).
As Eisenhardt (1989) states, there is a myth surrounding theory when it is build from case studies. This is due to the fact the process is limited by the preconceptions of the investigators, but the opposite is true following Eisenhardt (1989). The process can generate theory with less researcher bias than the theory which is built from incremental studies, this is because the former tend to unfreeze the thinking. An open and creative mind will be developed this way. Another strength of using theory is that it can be measured, the verification that is repeatedly been done during the theory building process makes sure the hypotheses can be proven true or false. Another strength is that the resultant theory is valid, this since the theory-building process is closely tied with the evidence. From the beginning of the research the data is used and an interaction with actual evidence makes sure that developed theory is closely related to the reality (Mintzberg, 1979).
The theory-building process being done by a case studies relies on literature that is already been written and on the other side empirical observation and experience from the case study together will conclude in a well developed and argumented new theory.
5.4 Research process and methodology applied
From the theory mentioned in the first paragraphs of this chapter, the different types of methodology are explained which can be used. It depends on the information already known and also the type of information that is needed to answer the hypotheses.
In this research a combination of literature and information from practice will be needed to answer the hypotheses completely. Therefore a case study will be most applicable since multiple levels of analysis are used in one research, diverse sources of information are used to answer the questions of hypotheses described. The literature used will be tested and the interaction with the evidence from the case study in the form of interviews will together make sure the stated hypothesis will be answered.
A pilot study is a good way to find out if it is worthy to carry out a detailed investigation (Kumar, 2005). In this specific research the pilot study is used to find out the specific problem of Voorneveld Architectuur, among a small amount of the target group a qualitative study is done (Chapter 2.2.6). This way the theory is tested and the practical insight can be taken into account when developing the new theory.
5.4.1. Preface
Voorneveld Architectuur has on average about fifteen clients in a year, this amount should be taken into account when deciding about the sample size of the case study. The business owners are the internal stakeholders, and on the other side the external stakeholders exist of clients and the retail service organisation. Therefore to get a complete view of the current situation, people from the three different groups should be included in the sample. As already mentioned in chapter 2.1 Johanson & Brooks (2009) state that there is no minimum or maximum of the sample size, it is important that the size chosen is representative of the population. Since the organisation Voorneveld Architectuur has about fifteen clients a year, the case study is held among nine clients. Only clients within the last and current year are chosen to get a clear view of the current situation and what can be improved. Among these are the interviewees of the pilot interview, this because the questions are more in debt so more information can be gained from these clients.
As also explained in chapter 2.3 the retail service organisation is in between the clients and Voorneveld Architectuur, the clients recommendate the architects to other potential clients. Since the retail service organisation is very close to the clients of Voorneveld Architectuur, they know the opinion of these clients about Voorneveld during and after the cooperation process. Next to the clients, the information of the retail service organisation is therefore of much value to include in the case study.
