Psychological perspectives of owner-managers on voluntary retirement

Purpose The study aims to assist small- and medium-sized enterprises (SMEs) in preparing for the retirement of their owner-managers and smoothing their management transition. It explores how owner-managers perceive and navigate their retirement journey from a psychological standpoint. Design/methodology/approach This qualitative research employs in-depth interviews with founders or family business owners undergoing different phases of succession. Findings Both pressing-need and self-conviction can drive the succession process, but they result in distinct psychological responses from the owner-managers during essential changes in the process. Pressing need can induce anxiety, making owner-managers reluctant to accept changes or even reconsider the retirement decision later. On the other hand, self-conviction can serve as a motivator for planning a voluntary retirement and seeking out fulfilling activities post-retirement. Research limitations/implications The research context is SMEs in France; thus, distinct contexts or cultures may not be applicable. Practical implications Emphasizing failure cases can prompt owner-managers with pressing retirement needs to take action. Conversely, sharing successful examples motivates those with a sense of conviction to make proactive retirement decisions, ultimately benefiting all stakeholders. Social implications Poorly planned and executed succession in SMEs can lead to job losses, organizational instability and economic damage. Originality/value This study contributes to psychological models of family business succession with insights into the psychological responses of owner-managers in management succession.