The Influence Of Social Capital Adaptation On The Family Business Performance In Succession

Family business is a tenacious vitality form of business organization. They exist abundantly and develop sustainably throughout the world. So it is a valuable field to research. The first generations of family entrepreneurs start out from reform and openness have gradually withdrew from the stage. They are starting looking for a successor actively. Family business has entered the first peak of intergenerational. Therefore, the study of intergenerational inheritance of Chinese family business is urgently needed. Continued development of family business has always been the pursuit of family members’ goals. Although the theorists have focused on the importance of social capital in succession, it is uncertain about how social capital impact family business performance. The purpose of this study is investigating the influence of adjustment of social capital on the family business performance in succession, in order to find a new theory of social capital in succession. So the theory can rich the theoretical research of family business inheritance, and provide some reference for the family business heritage.In the study, we will investigate the influence of social capital adaptation on the family business performance in succession using the method of case study and empirical research. First, we will use content analysis to analyze cases. By comparing the successor’s adjustment behavior and the effect of the adjustment behavior in Hisoar Pharmaceutical,FOTILE Group and Highsee Group, we find that, if the successor make adjustments on social capital purposefully in succession, the whole social capital in family business will be more rich, so family business inheritance will be more smoothly. In this paper, we defined the behavior of inheritance and adjustment as social capital adaptation. In order to test the rationality of this theory, we will take the listed family firms as the main object of study, to research the relationship between adjustment of social capital and the family business performance in succession. The research found that, there is an inverted U-shaped relationship between adjustment of social capital and the family business performance in succession. That is, social capital adaption has a positive influence on enterprise performance in family business succession.Therefore, on the basis of case study and empirical study, we can draw the conclusion of this study: if the successor makes inheritance and adjustment on social capital, the whole family business will gather more social capital, so the family business inheritance will be more smoothly. The conclusion of the study can rich the theoretical research of family business inheritance on the theoretical research. Meanwhile it provides a new field of study for subsequent studies of family business succession. In practice, on the basis of the research conclusion, a series of countermeasures and suggestions are given for the management of the process of family business succession. We hope these countermeasures and suggestions can play a guiding role in family business succession.