Examining the Impact of Inherited Succession Identity on Family Firm Performance

20 Pages Posted: 13 Mar 2014

See all articles by Sean Sehyun Yoo

Sean Sehyun Yoo

Belmont University - College of Business Administration

Mark T. Schenkel

Belmont University - College of Business Administration

Jaemin Kim

San Diego State University - College of Business Administration

Date Written: April 2014

Abstract

The vast majority of research on family firm performance following intergenerational succession draws on either agency or stewardship theory, resulting in conflicting findings and conclusions. In this study, we depart from the mainstream by focusing on how inherited successor identity and its combined influence with successors’ broader socioeconomic context exert impact on intergenerational post‐succession performance. Drawing on social embeddedness perspective, we hypothesize that a non‐first‐son‐based succession identity disproportionately better positions successors to take advantage of the informational exchange relationships and entrepreneurial opportunities, particularly when succession identity interacts with independent outside board members, as well as large blocks of outside shareholders, while simultaneously avoiding the pressures and constraints associated with “family tradition” aspects of the family business system. Data collected from a sample of Korean family firms showed support for this moderation hypothesis. These results suggest the need for more theoretically grounded research on the inherited identity of successors to help draw a more realistic and balanced picture of social dynamics in family firm performance.

Suggested Citation

Yoo, Sean Sehyun and Schenkel, Mark T. and Kim, Jaemin, Examining the Impact of Inherited Succession Identity on Family Firm Performance (April 2014). Journal of Small Business Management, Vol. 52, Issue 2, pp. 246-265, 2014. Available at SSRN: https://ssrn.com/abstract=2408263 or http://dx.doi.org/10.1111/jsbm.12098

Sean Sehyun Yoo (Contact Author)

Belmont University - College of Business Administration ( email )

United States

Mark T. Schenkel

Belmont University - College of Business Administration ( email )

1900 Belmont Boulevard
Nashville, TN
United States
615 460 6784 (Phone)

Jaemin Kim

San Diego State University - College of Business Administration ( email )

Finance Dept. San Diego State University
5500 Campanile Drive
San Diego, CA 92182-8236
United States
619-594-2721 (Phone)

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