Succession of top management in Japanese farming firms
1999
Tsuboi, N. (Tsukuba Univ., Ibaraki (Japan))
I define succession of top management in Japanese farming firms as an "alternation of owners and/or executives without regard to members or their families." This succession is different from that in Japanese family farms, where succession takes place through family members. There are not many cases of succession in farming firms because of their short history and the small number of examples. Therefore, we know almost nothing about these succession patterns. A few experiences show the following facts with regards to succession in farming firms. Some firms have "on the job training" programs for future executives. Present executives in some firms select candidates from outside the circle of of the firm's members and their families. With a variety of activities and customers, firms need various talents besides production, such as marketing, financial management and/or planning. There are few differences in succession patterns among firms with different business forms, such as cooperatives and corporations, and with different business activities. The form of succession seems to differ according to the amount of capital, and the firm's assets and liabilities, but I could not find any problems in the firms I surveyed. Japanese farming. firms do not have enough capital at present. An age-limit system for executives forces top management to alternate. The following issues have to be improved to make succession easier: 1) Deregulation of the position of executive in farming firms, 2) paying reasonable rewards to executives, 3) having informed consent among Customers of the alteration of top management, and 4) establishing market for executive candidates for farming firms
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