z-logo
open-access-imgOpen Access
A Family Affair: A Quantitative Analysis of Third-Generation Successors’ Intentions to Continue the Family Business
Author(s) -
Francine Chan,
Dominique Jalandoni,
Cecil Austin Sayarot,
M. C. Uy,
Denver Daradar,
Patrick Adriel P. Aure
Publication year - 2020
Publication title -
organizations and markets in emerging economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.195
H-Index - 4
eISSN - 2345-0037
pISSN - 2029-4581
DOI - 10.15388/omee.2020.11.43
Subject(s) - third generation , family business , normative , psychology , social psychology , control (management) , generation y , wright , first generation , mediation , generation gap , marketing , sociology , management , business , political science , computer science , economics , telecommunications , population , social science , demography , law , programming language
Family businesses face a succession crisis where only 13% survive until the third generation (Lee-Chua, 2014). While there is sufficient literature on family business succession planning , research on the motivations behind next-generation engagement in family firms, especially for third-generation successors, is limited (Garcia, Sharma, De Massis, Wright & Scholes, 2018). Thus, the present study tested Garcia et al. (2018)’s model where perceived parental support and psychological control predict next-generation engagement, with family business self-efficacy and commitment to family business mediating this relationship. 118 third-generation successors were surveyed using established and newly developed scales based on previous literature. Mediation analysis showed that normative commitment partially mediated verbal encouragement and next-generation engagement, while affective commitment fully mediated parental psychological control and next-generation engagement. Results were also compared against 124 second-generation successors, revealing that there were no significant differences between generations. Combining these two datasets led to a new conceptual framework, where normative commitment partially mediated verbal encouragement and next-generation intention, while affective commitment partially mediated parental psychological control and next-generation intention. The results of the study can contribute to the enrichment of family business literature, particularly on the factors that influence the intentions of third-generation successors, and to the creation of effective succession plans.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.
Having issues? You can contact us here