A Family Affair: A Quantitative Analysis of Third-Generation Successors’ Intentions to Continue the Family Business
Articles
Francine Chan
De La Salle University - Manila
https://orcid.org/0000-0002-9253-4733
Dominique Jalandoni
De La Salle University
https://orcid.org/0000-0003-4910-5148
Cecil Austin Sayarot
De La Salle University
Marc Uy
De La Salle University
https://orcid.org/0000-0001-8847-4822
Denver Daradar
De La Salle University
Patrick Aure
De La Salle University
https://orcid.org/0000-0001-8217-9646
Published 2020-12-30
https://doi.org/10.15388/omee.2020.11.43
PDF
HTML

Keywords

family business
third-generation successor
perceived parental support
perceived parental psychological control
family business self-efficacy
commitment to family business
next-generation engagement

How to Cite

Chan F., Jalandoni D., Sayarot C. A., Uy M., Daradar D. and Aure P. (2020) “A Family Affair: A Quantitative Analysis of Third-Generation Successors’ Intentions to Continue the Family Business”, Organizations and Markets in Emerging Economies, 11(2), pp. 462-481. doi: 10.15388/omee.2020.11.43.

Abstract

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.

PDF
HTML
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Please read the Copyright Notice in Journal Policy.