Resistance to change in family SMEs: Authentic leadership during succession

Resistance to change during the succession phase presents a notable challenge within family SMEs due to entrenched traditions and historical legacies. Consequently, managing resistance to change becomes paramount for facilitating a smooth transition and ensuring business longevity. This study uses the PLS-SEM method to explore how perceived authentic leadership, organisational justice, and psychological ownership address resistance to change with a dataset of 369 valid responses from employees in family SMEs. The results suggest that, in the succession phase, employees’ perception of authentic leadership can mitigate resistance to change directly and indirectly through the mediating role of organisational justice and psychological ownership. Moreover, organisational justice as a moderator diminishes resistance to change by eliminating nepotism between family and non-family members. Given the region’s shared cultural values and institutional frameworks, these findings broadly apply to family SMEs in Southeast Asia.