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Shared Identity, Family Influence, and the Transgenerational Intentions in Family Firms

Author

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  • Raj V. Mahto

    (Anderson School of Management, The University of New Mexico, Albuquerque, NM 87131, USA)

  • Jiun-Shiu Chen

    (College of Business, McNeese State University, Lake Charles, LA 70605, USA)

  • William C. McDowell

    (Foster College of Business, Bradley University, Peoria, IL 61625, USA)

  • Saurabh Ahluwalia

    (Anderson School of Management, The University of New Mexico, Albuquerque, NM 87131, USA)

Abstract

A family’s transgenerational intention (TI) to pass ownership of the firm to the next generation of family members is the defining characteristic of a family. TI reflects a family’s intention to engage in succession planning, which is the primary predictor for succession success. In this study, we draw on psychological ownership theory to develop and test a model of a family’s TI. In the model, we argue that family influence impacts TI through shared identity. We also argue that a family firm CEO’s relationship to the family (by blood vs. marriage vs. hire) moderates the relationship between shared identity and TI. We tested our hypotheses and the model on a sample of North American family firms and found support for most hypotheses.

Suggested Citation

  • Raj V. Mahto & Jiun-Shiu Chen & William C. McDowell & Saurabh Ahluwalia, 2019. "Shared Identity, Family Influence, and the Transgenerational Intentions in Family Firms," Sustainability, MDPI, vol. 11(4), pages 1-15, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:4:p:1130-:d:207853
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    References listed on IDEAS

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    Cited by:

    1. Balaussa Azubayeva, 2021. "The Impact of Cultural Capital on Development of Entrepreneurship in Wales," Administrative Sciences, MDPI, vol. 11(4), pages 1-24, December.
    2. Julio Diéguez-Soto & María J. Martínez-Romero, 2019. "Family Involvement in Management and Product Innovation: The Mediating Role of R&D Strategies," Sustainability, MDPI, vol. 11(7), pages 1-24, April.
    3. Mahto, Raj V. & Vora, Gautam & McDowell, William C. & Khanin, Dmitry, 2020. "Family member commitment, the opportunity costs of staying, and turnover intentions," Journal of Business Research, Elsevier, vol. 108(C), pages 9-19.
    4. Mahto, Raj & McDowell, William C. & Davis, Peter, 2020. "Influence and values: The connection between participation and commitment in family firms," Journal of Business Research, Elsevier, vol. 112(C), pages 354-362.
    5. Dmitry Khanin & Atanu Rakshit & Raj V. Mahto & William C. McDowell, 2020. "An Ongoing race: family CEOs vs. non-family CEOs," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1043-1063, September.

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