The Impact Of Social Networks On The Succession Family Business And Firm Performance

With the development of market economy,as the main force of the family business plays a very important role in private enterprises.Special culture and goals of family business will affect the business development.Theory and practice are very concerned about these study.Most of our family business is faced with the important stage of inheritance and the family business at home and abroad that "inherited his father?s" is still relief method for many family firms.Compared to the parents,the the successor of the second generation has different growth environment,values and business philosophy,so the two generations of corporate governance is also different.People are highly concerned about whether the second generation of corporate heirs can create great value in family business.However,from the perspective of the social network and corporate governance,family business heritage and corporate performance issues are very limited.This paper is to study the inheritance process,social network,corporate governance of the family business and the performance of the company,the research results are very theoretical and practical value.Through the empirical research of2011-2015,we find the following results:(1)Social network complexity(internal and external networks)have negative impact on the level of the second generation.The complexity of the internal network in the social network will make the second generation choose the inheritance form,the external network complexity will inhibit the inheritance form of the second generation entrepreneur.(2)The level of the second generation inheritance has a negative impact on the innovation performance but do not have significant impact on the financial performance.The inheritance form of the second generation will enhance the enterprise performance(financial and innovation performance),it explains the form of inheritance in the family business is more important than the level of transmission.Though success to start a new business,the second generation can be experienced as ability and value.They can get social identity.The level of transmission reflects the second generation of creative ability is relatively weak.(3)The level of second generation inheritance does not play a mediating role between social network complexity and financial performance,but there is amediating role between social network complexity and innovation performance.The form of inheritance has an intermediary role between social network complexity and corporate performance(financial performance and innovation performance).(4)Considering the role of the interaction between social network and corporate governance level,the results show that the level of corporate governance can positively regulate the relationship between the complexity and the level of internal social network,which indicates that the level of corporate governance will reduce the social network complexity to the negative level of inheritance Influence,accelerate the second generation to master the process of business.Under the high level of corporate governance,the complexity of the external network will exacerbate the effect of the second generation of the transfer level,the internal network complexity will lead to the second generation tend to choose the way of startups inheritance.(5)The analysis shows that the level of corporate governance will inhibit the positive relationship between the second generation entrepreneurial inheritance and corporate performance(financial performance and innovation performance).And the level of corporate governance in the second generation of the level of transmission and corporate performance there is no regulatory role.The results of this study have certain instructive to our family business that face the questions of succession.Based on the inheritance model,theoretical research and the social network theory research,it will provide the theoretical basis and practical experience for the development of the family enterprises,and help the second generation successfully inherit enterprise.