For most parts of the world, family businesses are often passed down from parents to their biological children; however, Japan has long embraced a different tradition where, rather than handing leadership automatically to a son by birth, many Japanese family firms adopt adult heirs, often talented managers or the husbands of daughters, to preserve family business across generations. Although the practice may seem unusual to many, research suggests that it can have measurable business benefits. According to a 40-year study titled Adoptive expectations: Rising sons in Japanese family firms , Japanese family firms led by adopted heirs frequently outperform those managed by biological sons, underscoring how merit-based succession can strengthen long-term corporate performance.
Get breaking news anytime, anywhere. Download the TOI app now!
