Navigating Succession in European Family Businesses: A Three-Circle Model Reinterpretation of Case Studies

Family-owned businesses are foundational to Europe’s economic fabric, yet many fail to navigate intergenerational transitions successfully. This study aims to explore how European family-owned SMEs manage succession processes across the domains of family, business, and ownership. Specifically, it investigates the role of narrative strategies, governance structures, and emotional dynamics in shaping succession outcomes, with a view toward identifying systemic sources of conflict or cohesion. The study adopts a qualitative secondary multiple case study approach, analyzing three detailed European family business cases through the lens of the Three-Circle Model. Cases were selected based on geographic location (Europe), firm size (SMEs and one large company), and the depth of qualitative documentation. The analytical framework facilitates reinterpretation of existing data, focusing on how the alignment – or misalignment – of family, business, and ownership roles affects succession success. The analysis reveals several underexplored but critical dynamics. First, succession narratives can function as an alternative infrastructure to formal plans, especially in contexts rich in symbolic capital. Second, excessive stewardship by successors may inhibit open dialogue and necessary change. Third, inertia within the ownership domain can stall strategic renewal. Finally, misalignment among the three circles systematically generates friction unless mediated by deliberate governance mechanisms and identity management strategies. By applying the Three-Circle Model in a novel comparative context, the study offers an integrated perspective on succession that bridges emotional, structural, and symbolic dimensions. It introduces the concept of “narrative legitimacy” and demonstrates how identity narratives can stabilize or destabilize transition processes. Findings support the implementation of early succession planning, role clarity frameworks, and governance innovations such as family councils. The study also underscores the value of narrative construction in managing stakeholder expectations and reinforcing continuity. These insights are particularly relevant for family firms in Central and Eastern Europe currently facing generational transitions.