Transgenerational control intention and employment practices of family firms in China

Jiawen Chen, Pengfei Li and Linlin Liu

International Journal of Emerging Markets, 2023, vol. 20, issue 5, 1972-1994

Abstract: Purpose - This study aims to examine the employment practices of family firms in emerging markets. Drawing from the social exchange theory, the authors propose that transgenerational control intention enhances the motivation for family owners to engage in favorable employment practices as inducement for future contribution of employees. Design/methodology/approach - Multilevel regression models were applied to test the hypotheses with a sample of 3033 Chinese private family firms. Findings - The results show that the employment practices of family firms are positively associated with transgenerational control intention, and the effect of transgenerational control intention is contingent on regional social trust. Originality/value - This study highlights the role of transgenerational control intention of family owners in motivating favorable employment in family firms. The study adds nuance to the variances in employment behaviors of family firms as well as the family owner-employee exchange relationship in emerging markets.

Keywords: Employment practices; Family firm; Transgenerational control intention; Social exchange theory (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-04-2022-0589

DOI: 10.1108/IJOEM-04-2022-0589

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