Succession Strategies in a Large Family Business Group: the Case of the Swedish Wallenberg Family

In this paper the long term viability of one of the most important Swedish family business groups, that of the Wallenberg family, is analyzed by focusing on one aspect of great importance in family strategic business behavior: the succession of leadership from one generation to another. Heading into the millennium the Wallenberg business group is controlled by the fifth generation. This case clearly shows the importance of consolidated group norms and attitudes – a corporate culture – in explaining the outcomes of succession planning, and, given these norms and attitudes, how the recruitment of reliable outsiders exceptionally has been used to provide a bridge from one generation to the next. It also demonstrates how family goals- the survival and consolidation of the family group – have been achieved by one and the same primogenitary succession strategy, established by the first and second generation at the end of the 19th Century: the leadership has intentionally descended on the male side, with priority naturally being given to the first-born son, although, in most generations, the leadership has been shared by two brothers or cousins. 2 ”You know the core characteristic of this firm is that it is a family business.The Wallenberg aspect must continue to dominate as long as there are members of this family suited to business pursuits.