Innovation Activities after CEO Succession in Family Firms: A Longitudinal Perspective

2021 ◽  
Vol 2021 (1) ◽  
pp. 14817
Author(s):  
Nora Zybura ◽  
Bettina Müller ◽  
Sandra Gottschalk
Keyword(s):  
Family Firms ◽  
Ceo Succession ◽  
Innovation Activities

CEO succession in family firms: Stewardship perspective in the pre-succession context

2016 ◽  
Vol 69 (11) ◽  
pp. 5111-5116 ◽  
Author(s):  
Yi-Min Chen ◽  
Hsin-Hsien Liu ◽  
Yung-Kai Yang ◽  
Wei-Hua Chen
Keyword(s):  
Family Firms ◽  
Ceo Succession

A Far-Reaching Parental Love? Co-Governance of Intergenerational Succession and Innovation Activities in Chinese Family Firms

2021 ◽  
pp. 1-37
Author(s):  
Zhenduo Zhu ◽  
Yuanfei Kang
Keyword(s):  
Family Relationships ◽  
Family Firms ◽  
Governance Structure ◽  
Chinese Family ◽  
Age Difference ◽  
Family Governance ◽  
Innovation Activities ◽  
Parental Love ◽  
And Gender ◽  
Intra Family

ABSTRACT Motivated by the research gap on intergenerational succession dynamics of family firms, this study examines the effects of initiating intergenerational succession on firms' innovation activities. We propose that initiation of intra-family succession can result in founder–successor co-governance that represents a strategic transition to the succession and incorporates the two conflicting yet complementary directions of change and continuity. Grounded in the theory of altruism, we suggest that co-governance will positively affect firms' innovation activities and that this positive link is contingent on the idiosyncratic intra-family relationships of kinship type, age difference, and gender difference between the founder and the successor. Furthermore, we posit that co-governance will lead to a flow of resources to low risk, rather than more inventive but higher risk, innovations. Based on the unbalanced panel data of 4,694 firm-year observations in our sample from listed Chinese family firms during the 2006–2015 period, empirical analysis supports our hypotheses and confirms that when examining family firms' innovation, there is a need to take the heterogeneity of the intra-family governance structure more fully into consideration.

The Enigma of the Family Successor–Firm Performance Relationship: A Methodological Reflection and Reconciliation Attempt

2019 ◽  
Vol 43 (3) ◽  
pp. 437-474 ◽  
Author(s):  
Jan-Philipp Ahrens ◽  
Andrea Calabrò ◽  
Jolien Huybrechts ◽  
Michael Woywode
Keyword(s):  
Firm Performance ◽  
Family Member ◽  
Family Involvement ◽  
Family Firms ◽  
Empirical Studies ◽  
Ceo Succession ◽  
The Family ◽  
The Individual ◽  
Positive Effect ◽  
Methodological Reflection

Empirical studies examining firm performance following CEO succession in family firms predominantly document inferior performance of family successors. This evidence is at odds with general theoretical literature that attests a positive effect of family involvement inside the firm. To explore this enigma, we theoretically and empirically disentangle the influence of the CEO attribute family member (i.e., the CEO is affiliated to the family) on post-succession firm performance, from other, distinct CEO attributes (e.g., CEO-related human capital). Our analysis on the individual CEO level shows that after respective controls, the family member attribute is significantly positively related to post-succession firm performance.

Managing tensions as paradox in CEO succession: The case of nonfamily CEO in a family firm

2020 ◽  
Vol 38 (3) ◽  
pp. 211-242
Author(s):  
Judith van Helvert-Beugels ◽  
Mattias Nordqvist ◽  
Roberto Flören
Keyword(s):  
Resource Allocation ◽  
Family Firms ◽  
Longitudinal Research ◽  
Family Firm ◽  
Work Relationships ◽  
Advisory Board ◽  
Role Transition ◽  
Ceo Succession ◽  
Effective Work ◽  
The Family

An increasing number of family firms choose to select a nonfamily CEO for the highest executive office. However, appointing a nonfamily CEO in a family firm tends to give rise to tensions that need to be managed for effective work relationships between the nonfamily CEO and the family owners. We draw on insights from the paradox literature to better understand these tensions and how they are managed. We performed real-time, in-depth longitudinal research into one family firm, which appointed a nonfamily CEO, and studied tensions in the work relationships between the nonfamily CEO and the family owners for a period of three years. We identified tensions arising in four specific areas after the transition from a family to a nonfamily CEO: professionalisation, collaboration, resource allocation and role transition. We found new insights regarding how an advisory board can provide support for the family owners in building work relationships with the nonfamily CEO, which makes the tensions salient and possible to manage through a paradox approach. These results inform a perspective of paradox management that shows by whom and how the different tensions are managed, that is, through changes in behaviour and/or through changes in the underlying subsystems of the family firm.

"Rigging the Contest? CEO Succession in Family Firms: Contest and Agency Theory, & Evidence."

2015 ◽  
Vol 2015 (1) ◽  
pp. 14257
Author(s):  
Jan-Philipp Ahrens ◽  
Michael Woywode ◽  
Jan Zybura
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Ceo Succession

CEO succession game in family firms: Owners vs. advisors

2021 ◽  
pp. 1-18
Author(s):  
Raj V. Mahto ◽  
David E. Cavazos ◽  
Andrea Calabrò ◽  
Jeff P. Vanevenhoven
Keyword(s):  
Family Firms ◽  
Ceo Succession

scholarly journals Innovation heterogeneity in family firms: Evidence from the date industry in Saudi Arabia

2020 ◽  
pp. 146575032093086
Author(s):  
Dalal Alrubaishi ◽  
Ghadah Alarifi ◽  
Maura McAdam
Keyword(s):  
Saudi Arabia ◽  
Family Firms ◽  
Firm Innovation ◽  
Innovation Activities ◽  
The Family ◽  
Saudi Family ◽  
New Generation ◽  
Different Sources ◽  
Ability And Willingness ◽  
Unique Mechanism

Researchers have argued that family firm innovation is paradoxical in nature, in that family firms often display less innovation than their nonfamily counterparts, yet they are able to be more innovative. The aim of this article is to unpack this paradox by exploring how differences in family firms’ ability (discretion and resources) and willingness (economic and noneconomic) affect their innovation activities. We adopt a qualitative, interpretive methodology based on four case studies of Saudi family firms operating in the indigenous date industry. Our findings emphasize the importance of having all four sources of ability and willingness in order for innovation to occur and how, when the new generation enters the business, the family firm’s innovation posture changes to either ‘lagging’ or ‘reviving’. By exploring innovation in the date sector in Saudi Arabia, we contribute to the ability–willingness paradox by distinguishing between the different sources of ability and willingness and add to an emerging narrative that acknowledges the integration of past knowledge with new innovative practices as an important and unique mechanism by which family firms can harness innovation.

scholarly journals The effects of organizational ambidexterity and justice on organizational learning

2021 ◽  
Vol 10 (1) ◽  
pp. 1-14
Author(s):  
Ilkay Eraslan ◽  
Erkut Altindag
Keyword(s):  
Organizational Learning ◽  
Organizational Justice ◽  
Learning Strategies ◽  
Organizational Support ◽  
Personal Development ◽  
Structural Equation ◽  
Family Firms ◽  
Equation Model ◽  
Organizational Ambidexterity ◽  
Innovation Activities

  This study examines the relationship between organizational justice and organizational ambidexterity with organizational learning. This paper also evaluates the effect of organizational justice on organizational learning strategies of employees in the cause-effect relationship and measure the effect of perceived organizational support and bi-directionality on organizational learning. 645 family firms operating in Istanbul have been analyzed with Structural Equation Model. Findings demonstrate that organization's ambidexterity ability and the concept of justice in the organization had an indirect and positive effect on the perception of organizational support. This study also highlights that companies using their generic knowledge and skills increase the effectiveness of their innovation activities. The exploratory and development capabilities of a company make a significant contribution to the personal development of the employees in the company.

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