TITLE:
The Influence of Intergenerational Succession of Family Business on Its Performance—Taking Enterprise Innovation as a Mediating Variable
AUTHORS:
Jianjun Yu, Xiaofei Cai
KEYWORDS:
Family Business, Intergenerational Succession, Enterprise Performance, Mediating Effect, Enterprise Innovation
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.7 No.6,
June
28,
2017
ABSTRACT: Intergenerational
succession is a critical stage that most Chinese family businesses are in or
will be in. Therefore, problems like what influence of intergenerational
succession will have on performance of family businesses and what their internal
action mechanisms and action paths will be like are worthy to be discussed. Taking
1028 sample data of A-share listed
family businesses in Shenzhen and Shanghai during 2010 to 2014 as study objects,
the essay discussed direct influence of intergenerational succession on
performance of family businesses and mediating effect of enterprise innovation
on intergenerational succession and performance of family businesses by use of
multiple regressions. Research results indicated that there had a negative correlation
between intergenerational succession and performance of family businesses, and
between intergenerational succession and enterprise innovation, and moreover,
part of mediating effect of enterprise innovation on intergenerational
succession and performance of family businesses was obvious. It means that
intergenerational succession leads to the decline of performance of family
businesses, and one of the mechanisms is that intergenerational succession
reduces innovation investment of enterprises. The research
results could provide a reference to family businesses in arrangement of
innovation strategy and management of enterprise performance in the stage of
intergenerational succession.