Abstract(#br)Succession planning is widely believed to help business organizations with internal resourcing, reduce attrition of the work force caused by job-hopping high-fliers, and prepare qualified candidates for appointment to senior management positions. It is further known that when organizations fail to treat their succession plans as living documents, they may not only threaten their own continuity but also lose the opportunity to revitalize themselves. Even so, succession planning has been slow to take root in traditional Chinese businesses, which have been noted for their informal organization, top-down decision making, and emphasis on personal ties and relationships. However, rapid growth and increasingly tougher competition may force these firms to change their style of... management. This study assesses the extent to which formal succession planning has taken hold among Taiwanese business firms, and identifies factors underlying the decision to adopt a formal plan. For those local firms that have not introduced formal planning, it seeks to determine the concerns that have inhibited or prevented them from doing so. Finally, this paper attempts to detect differences that may exist between Chinese- and foreign-owned firms in the tendency to adopt succession plans.