How does an intra-family succession effect strategic change and performance in China’s family firms?

• DOI: 10.1007/s10490-018-9568-x
• Publication Date: 2018-03-26T22:30:23Z
• Authors: Jing Zhao; Michael Carney; Shubo Zhang; Limin Zhu
• Keywords: 0502 economics and business; 05 social sciences

Motivated by the sparse literature on succession dynamics in China and other transitional markets we consider the effects of initiating an intra-family leadership succession on firm strategic change and performance on a sample of publicly listed family firms from China. Grounded in upper echelons theory we find that the initiation of a succession process leads to significant strategic change. Based on generational differences between founders and successors we find the succession-strategic change relationship is positively moderated by a successor’s international education. We also consider the strategic change to performance relationship.