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The Impact of Intergenerational Succession Intention on Family Firm’s Innovation Strategy: Evidence from China

Author

Listed:
  • Shuai Song

    (Southwest University of Political Science & Law)

  • Lixin Zhou

    (Chongqing Technology and Business University)

  • Stavros Sindakis

    (Chongqing Technology and Business University
    Hellenic Open University)

  • Sakshi Aggarwal

    (Institute of Strategy, Entrepreneurship and Education for Growth)

  • Charles Chen

    (University of Phoenix)

Abstract

In the development and growth of family businesses, succession is an unsolvable problem, which is also a popular focus of academic research. For a family firm, succession may be a strategic decision but also a long-term and intricate “footrace.” It will have a significant impact on the long-term viability of a family firm if it is not handled appropriately. This study mainly explores the influences of family business owners’ intergenerational succession intention on their family firms’ innovation strategy in China. In addition, this study further examines the moderating role of the institutional environment in the above relationship. Therefore, the data in this article comes from a survey of 271 family businesses in eight different regions of China. Also, this paper can aid the smooth transition of intergenerational transmission of small and medium-sized family businesses in addition to the untroubled development of technological innovation activities. Specifically, the institutional environment plays a negative moderating role in the relationship between family succession, radical succession, technological innovation, and a positive regulating role in the relationship between single equity succession and technological innovation.

Suggested Citation

  • Shuai Song & Lixin Zhou & Stavros Sindakis & Sakshi Aggarwal & Charles Chen, 2024. "The Impact of Intergenerational Succession Intention on Family Firm’s Innovation Strategy: Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 204-237, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-022-01078-8
    DOI: 10.1007/s13132-022-01078-8
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