Because it affects the next generation, knowledge transfer is a crucial resource for succession in a family-owned business. This paper examines how knowledge transfer impacts family businesses in Nanchang, Jiangxi Province, China. Data collection is done via semi-structured interviews, and data manipulation is done using data categorization and contextualization techniques. The findings show that: (i) the effect of knowledge transfers through the founder and beyond the family business results in a large amount of tacit knowledge in family businesses, whereas explicit knowledge is less significant, (ii) the most common means of knowledge transfer is that the successor uses the founder’s knowledge to innovate within the family business and (iii) the working atmosphere allows for ideas and knowledge to be shared, which is linked to the culture of family businesses. The paper also showed that family members prioritize their well-being and the well-being of their employees more than profit maximization in family businesses. Instead of seeking a one-sided knowledge transfer fit, the next generation should create novel insights and knowledge that are pertinent to the already-existing knowledge-based business.
Purpose
The purpose of this paper is to test whether the policies of China’s financial restraint have an inhibitory effect on the consumption of residents.
Design/methodology/approach
This study used the principal component analysis for constructing a financial restraint index and also used empirical methodology.
Findings
The authors found that financial restraint policies create rent opportunities for banking sector and production sector, which further creates the rent opportunities for the household sector. Such transfer of rent and redistribution will have an inhibitory effect on residents’ consumption. The financial restraint policies directly and indirectly inhibit the growth of residents’ income; and in theory, the purpose of financial restraint policy is to promote economic growth, thus promoting residents’ consumption. Thus, the financial restraint policies impacting the residents’ consumption are non-linear and test the threshold effect of financial restraints on the residents’ consumption of China.
Research limitations/implications
This paper’s theoretical contribution includes: increasing the connotation of financial restraint in the policies of stock market and foreign exchange controls, and further developing the financial restraint theory; and exploring the inhibitory effect on the consumption of residents from the perspective of financial restraints to enrich the connotation of the consumption theory.
Originality/value
The findings in this study can help the financial authorities to gradually relax the financial restraint policies to encourage residents’ consumption.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.