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Green innovation in family business succession: Exploring decision-making under parent-child co-governance

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Listed:
  • Wang, Kun
  • Huang, Min
  • Zhang, Le
  • Wang, Kun
  • Dong, Qiang

Abstract

This study investigates the impact of Parent-Child Co-Governance (PCCG) on green innovation within family businesses (FBs). Analysing Chinese A-share listed FBs from 2012 to 2020, we discover that PCCG FBs perform significantly worse in green innovation compared to non-PCCG FBs. Our findings indicate that FBs under PCCG encounter more substantial financing constraints and display lower risk preferences, both of which hinder green innovation. This study provides fresh insights into the strategic decision-making processes of FBs, particularly in the context of sustainable development. The results not only deepen our understanding of the PCCG model but also offer practical recommendations for FBs aiming to foster green innovation.

Suggested Citation

  • Wang, Kun & Huang, Min & Zhang, Le & Wang, Kun & Dong, Qiang, 2024. "Green innovation in family business succession: Exploring decision-making under parent-child co-governance," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007906
    DOI: 10.1016/j.frl.2024.105760
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    References listed on IDEAS

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    1. Huang, Lingyu & Chen, Aoyun, 2024. "Family business succession and corporate ESG behavior," Finance Research Letters, Elsevier, vol. 60(C).
    2. Patricio Duran & Nadine Kammerlander & Marc van Essen & Thomas Zellweger, 2016. "Doing More with Less : Innovation Input and Output in Family Firms," Post-Print hal-02276703, HAL.
    3. Cheng, Chen & Li, Siming & Liu, Shali & Zhang, Suge, 2022. "Origin matters: The institution imprint effect and green innovation in family businesses," Finance Research Letters, Elsevier, vol. 50(C).
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    5. Davila, Jessenia & Duran, Patricio & Gómez-Mejía, Luis & Sanchez-Bueno, Maria J., 2023. "Socioemotional wealth and family firm performance: A meta-analytic integration," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    6. Zhu, Zhenduo & Kang, Yuanfei, 2022. "A Far-Reaching Parental Love? Co-Governance of Intergenerational Succession and Innovation Activities in Chinese Family Firms," Management and Organization Review, Cambridge University Press, vol. 18(2), pages 358-394, April.
    7. Sherlock, Chelsea & Dibrell, Clay & Memili, Esra, 2023. "The impact of family commitment on firm innovativeness: The mediating role of resource stocks," Journal of Family Business Strategy, Elsevier, vol. 14(3).
    8. Zhou, Fuzhao, 2023. "Succession planning and firm innovation," Finance Research Letters, Elsevier, vol. 58(PA).
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    Cited by:

    1. Wang, Kun & Yang, Yunfan & Ren, Jingfei & Tang, Yingkai, 2024. "Roots and rewards: Exploring the symbiotic relationship between familism and Chinese family business philanthropy," Finance Research Letters, Elsevier, vol. 70(C).
    2. Xiaoqing Dong & Guangshun Cheng & Yuan Ren, 2025. "Going Green on the Government’s Dime: Unpacking the Subsidy Boost in Family Firms," Sustainability, MDPI, vol. 17(10), pages 1-25, May.

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    More about this item

    Keywords

    Family business; Green innovation; Parent-child co-governance;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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