Strategic Changes in the Post-succession Process in a Family Business : A Case Study through the Lens of Sensemaking

Sammanfattning: Background: Succession is not only a significant moment but also a major challenge for a family business’s life. The new CEO’s performances can play a critical role in the post-succession process, which consists of a series of strategic changes. Although the new CEO and various stakeholders can influence the post-succession process to different extents, previous literature has shown a lack of focus on the interactions between the new CEO and multiple other stakeholders in the post-succession process. To understand both the context filled with organizational changes and the interactions between individuals, the lens of sensemaking can be applied for the research.  Purpose: This study attempts to explore the perspectives of the new CEO and multiple other stakeholders regarding the strategic changes happening in the post-succession process in a family business through the lens of sensemaking.  Methodology: This thesis is based on a case study. Data was collected from previous literature, semi-structured interviews with 10 interviewees and public information. NVivo and manual coding were applied in data analysis.  Findings: The sensemaking map as the main finding shows that strategic changes in the case include two stages, the formulation stage and the implementation stage. Sensehiding conducted by the new CEO at the beginning of implementation classifies strategic changes into covert and overt type. The new CEO was the only one actively involved in the formulation stage. The managers and grassroot employees performed actively in the implementation stage instead, where the new CEO was rarely involved. The findings also analyzed the new CEO’s characteristics to illustrate the formulation of strategic changes centered on the new CEO.