Next-generation commitment in family firms in Ethiopia

Purpose Research on next-generation commitment in family firms has largely focused on Western contexts and has paid limited attention to how commitment evolves over time and across different family roles. This paper examines how next-generation family members in Ethiopia develop, sustain, or discontinue their commitment to the family business, and how different forms of commitment shape decisions to remain in or exit from the family business. Design/methodology/approach The study adopts a qualitative, retrospective processual multiple-case design. Data were collected through in-depth interviews, observations, and archival materials from three Ethiopian family firms, involving eight next-generation members (children and extended family members). The analysis follows a theory-building approach to trace changes in affective, normative, and continuance commitment over time. Findings The findings show that next-generation commitment is dynamic and evolves in response to personal life events, family dynamics, and dominant socio-cultural norms. Children's and young extended family members' initial engagement is largely driven by normative commitment. However, adult unemployed extended family members are driven by continuance commitment. Over time, both children and extended family members developed affective commitment by via multiple work experience and responsibility. With the passage of time, factors such as workload, exclusion from ownership and decision-making, marriage, and sibling rivalry erode next-generations’ affective commitment and contribute to exit decisions. Ironically, owners' provision of assets to married children (birthright) and extended family members (contingent on performance) to sustain commitment in the family business often create conditions to facilitate independent venturing and de-commitment. Originality/value This study advances successor commitment research by demonstrating the evolving and context-dependent nature commitment in family firms. By incorporating extended family members and offering an indigenous African perspective, it addresses the Western bias in family business research and highlights the importance of institutional and cultural context in shaping next-generation engagement and exit.