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Sibling Rivalry vs. Brothers in Arms: The Contingency Effects of Involvement of Multiple Offsprings on Risk Taking in Family Firms

Author

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  • Jin Chen

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

  • Chengyuan Wang

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

  • Qiong Wang

    (School of Economics, Hefei University of Technology, Hefei 230601, China)

  • Biao Luo

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

Abstract

Succession process is a significant matter that is vital to the sustainability of a family firm. Families are generous in involving the offspring(s) into the family business so as to fulfill inter-generational succession. In this paper, we concentrate on the issue on the results of the involvement of multiple offsprings in family firms. By using data collected from China listed family firms between 2009 and 2015, we reveal that there exist contingency effects of the involvement of multiple offsprings on risk taking in different phrases. The involvement of new offspring(s) that leads the sibling rivalry to happen would increase risk taking of the family firm in a short-term. While for those family firms in which offsprings serve together as brothers in arms, risk taking is even lower than that of family firms with no more than one offspring. Our findings have managerial implications for dealing with succession process and maintaining sustainability of family businesses.

Suggested Citation

  • Jin Chen & Chengyuan Wang & Qiong Wang & Biao Luo, 2019. "Sibling Rivalry vs. Brothers in Arms: The Contingency Effects of Involvement of Multiple Offsprings on Risk Taking in Family Firms," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4447-:d:258436
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    1. Lin, Nidthida & Wilden, Ralf & Chirico, Francesco & Ghasrodashti, Elahe & DeTienne, Dawn R., 2022. "Persist or let it go: Do rational entrepreneurs make decisions rationally?," Journal of Business Venturing, Elsevier, vol. 37(4).
    2. Qiong Wang & Ru Yang & Ruyue Zhao & Chengyuan Wang, 2019. "Does State-level Upgrade of High-tech Zones Promote Urban Innovation Efficiency: Evidence from China," Sustainability, MDPI, vol. 11(21), pages 1-14, November.

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