Family firms and regional development

Zhang, Xinrui; Dou, Junsheng; Fang, Chevy-Hanqing

doi:10.4324/9780429058097-16

Cited by 1 publication

(4 citation statements)

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“…Family firm are highly prevalent in China (Sharma and Chua, 2013). However, it was only after 1978, in the "Reform and Opening-Up" era that privately owned businesses were able to exist (Zhang et al, 2021). Thus, Chinese family businesses are relatively young.…”

Section: Methods Chinese Family Business Contextmentioning

confidence: 99%

“…This is why family members in traditional business families are expected to become the successors within the family business. Within this social unit, the roles of family members and their relationships are governed by Confucian values which promote the idea that the role of family members is to nurture and continue the family and its goals (Zhang et al, 2021). Three reasons drove our interest in the Chinese context.…”

Section: Methods Chinese Family Business Contextmentioning

confidence: 99%

“…Three reasons drove our interest in the Chinese context. First, Chinese family firms are still young as many of them were established after the 1978 reform (Zhang et al, 2021). Second, as the majority of founders who launched family business after 1978 are close to retirement and start to pass family business to next generation, Chinese family firms are now experiencing the transition from first-generation to second-generation, with very few from second to third (Chen et al, 2021;Yuan, 2019).…”

Section: Methods Chinese Family Business Contextmentioning

confidence: 99%

“…Three reasons drove our interest in the Chinese context. First, Chinese family firms are still young as many of them were established after the 1978 reform (Zhang et al. , 2021).…”

Section: Methodsmentioning

confidence: 99%

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Not all crises are the same: the effects of crisis triggered successions in family firms

Ren,

Botero,

Fiet

2023

JFBM

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PurposeAlthough succession planning can be important for the continuity of family firms, not all family business have the opportunity to engage in this planning. Sometimes, these organizations face crisis events that may trigger an intra-family succession. However, what happens when there is an unplanned succession? Are family businesses doomed to fail? This project aims to explore unplanned successions that are triggered by crisis and the impact that this can have on post-succession financial performance. The authors also examine the moderating role of successor characteristics (i.e. education and previous work experience) on this relationship.Design/methodology/approachThe ideas were tested using data from 151 publicly listed family firms in China.FindingsThe findings indicate that having a crisis driven intra-family succession does not always result in lower post-succession performance. It is only successions that are triggered by market crises that negatively impact financial performance after the unplanned succession. In these instances, the education and previous experience of the successor moderate the negative relationship between market crisis succession and financial performance such that having more experience and a college education diminishes these negative effects on performance.Practical implicationsThe results point to the importance of the preparation of the next generation in helping family firms navigate unplanned successions. The findings indicate that education and previous work experience of the successor can help a family firm manage a crisis.Originality/valueThis study continues to build the understanding about unplanned successions and the important role that successor preparation can have for the success of the family firm.

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Section: Methods Chinese Family Business Contextmentioning

confidence: 99%

Section: Methods Chinese Family Business Contextmentioning

confidence: 99%

Section: Methods Chinese Family Business Contextmentioning

confidence: 99%

“…Three reasons drove our interest in the Chinese context. First, Chinese family firms are still young as many of them were established after the 1978 reform (Zhang et al. , 2021).…”

Section: Methodsmentioning

confidence: 99%

See 2 more Smart Citations