Coexisting with the national will: state logic and intrafamily succession

Xuan He (), Weicheng Xiao () and Qiang Liang ()
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Xuan He: Guangdong University of Foreign Studies
Weicheng Xiao: Shantou University
Qiang Liang: Shantou University

Small Business Economics, 2024, vol. 63, issue 2, No 9, 713-730

Abstract: Abstract Based on the institutional perspective and socioemotional wealth (SEW) theory, this paper examines the impact of state logic, which is prevalent in the institutional environments of emerging markets, on the intrafamily succession intention (IFSI) of family firms. We posit that state logic shapes the set of institutional arrangements that constrain the family-centered socioemotional goals of family firms. Thus, the prevalence of a dominant state logic is negatively related to the probability of family business owners holding IFSI. However, the political power of owners can be leveraged to alleviate and even reverse this negative relationship. Moreover, the influence of political power is pronounced in settings with underdeveloped market institutions but not in those with developed ones. An empirical analysis of 774 fully family-controlled Chinese companies considering intrafamily succession substantiates our hypotheses.

Keywords: Family firm; Institutional environment; Intrafamily succession; Socioemotional wealth (search for similar items in EconPapers)
JEL-codes: D22 G18 G30 G38 L21 L26 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11187-024-00876-5

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