Study On The Impact Of Intergenerational Succession On The Performance Of Chinese Family Enterprise

Family enterprises are the immanent organizational form of enterprises all over the world.They play very important roles in economical and social development. Transferring theleadership from father to son is very common in family enterprises, as this kind of succession hasmuch more deep culture foundation, especially in China.Firstly, this thesis discusses deeply several concepts, such as family enterprises,intergenerational succession, firm performance and so on. And then we do a review of researchon intergenerational succession and firm performance, thereby we put forward the researchframework of this thesis. On the basis of literature review systematically, this thesis finds thatthere are four factors affecting the success of intergenerational succession in family enterprises,such as family culture cohesion, succession plan normalization, successor motivation and style ofsuccessor leadership. Meanwhile, we put forward the two indexes which evaluate the success ofthe intergenerational succession, namely, the success of enterprises and the success of family.While the success of enterprises has been divided into two aspects, namely, task performance andrelation performance.Secondly, this thesis provides an empirical analysis based on questionnaire survey. The studyfinds that both family culture cohesion and successor motivation affect the success of enterprisesand the success of family significantly. Succession plan normalization influences the success ofenterprises markedly, but there is no marked effect to the success of family. While the style ofsuccessor leadership impacts both relation performance and family success significantly, but thereis no significant effect to task performance.Thirdly, this thesis takes Li Jin Ji Corporation for example, analyses the impact of the fourfactors as mentioned above on firm performance of Li Jin Ji Corporation during intergenerationalsuccession and summarizes the successful experience.At last, we generalize the research achievement, and propose the existing problems. And thenput forward some directions for further research, for example intergenerational successionmechanism, Chinese culture background, research method and so on.