The Impact Of Family Business Intergenerational Succession Model On Operating Performance

The development of family business plays an important role in China' s economic system reform and the establishment of a market-oriented economic system.Most of China' s family businesses have sprung up in the early days of reform and opening up.After nearly 40 years of development,they are currently facing the predicament of intergenerational inheritance.Operating performance is the key to measuring the quality of intergenerational heritage.Its formation is affected by a series of factors.In traditional economic theory,physical capital and human capital are often considered as important resources for companies to create value.Family businesses are different from others.Company-based enterprises,based on social networks based on kinship,kinship and geography,and related trust,rules and value orientation,are closely related to the value created by the enterprise,and the concept of social capital came into being.Social capital is an intangible resource obtained by social subjects interacting with other subjects in internal and external environments to establish social network relationships.The model of intergenerational inheritance,that is,progressive or radical,will affect the degree to which the successor inherits and reconstructs the social capital of the family business,thereby affecting the business performance of the family business.This article takes "inter-generational inheritance model of family business-social capital-business performance" as the research path,and aims to explore the inherent relationship between inheritance mode,social capital and business performance.This article adopts a double case study to select the representative company Zhejiang Longsheng with progressive inheritance and the representative company Haixin Iron and Steel with radical inheritance to summarize,deduct and compare the changes of social capital after intergenerational inheritance,and analyze it through the event research method The short-term impact of gradual inheritance on corporate value,and the long-term impact of social capital on operating performance through management accounting analysis systems.The case study found that:First,based on the theory of social emotional wealth,the successor under the progressive inheritance model has accumulated experience in family businesses and was influenced by the entrepreneurial spirit of the fathers.Strong resistance to stress and the ability to handle internal and external relations networks are conducive to the inheritance and reconstruction of social capital.Second,based on transaction cost theory and resource dependency theory,the internal social capital of an enterprise can improve the sense of belonging and identification within the organization,which in turn affects the work efficiency and values of employees,and saves the cost of management constraints.At the same time,the more channels for companies to obtain information,the more information resources they have,the lower the cost of information search,which helps the company to formulate and implement new product development and business decisions.Third,the more external social capital,the more the company and external interests The closer the stakeholders are,the better they can communicate,and the lower the cost of decision-making time;the more resources the supplier and customer have,the easier it is for the company to carry out business activities and ensure the smooth operation of procurement and sales;social capital also helps to strengthen Stakeholders' recognition of corporate culture increases the social resources of the company.Fourth,social capital,as an intangible resource for business operations,affects value activities such as production and operation,procurement and sales,and technology research and development,thereby having a long-term impact on the performance of business activities.The gradual inheritance model is beneficial to smooth the impact of intergenerational inheritance,thereby increasing the short-term and long-term value of the enterprise.Based on the above conclusions,family businesses can choose a more reasonable intergenerational inheritance model,select and cultivate the characteristics of corporate successors,promote social capital inheritance and reconstruction to smooth intergenerational inheritance shocks,and improve corporate performance.Studying the impact of intergenerational inheritance of family businesses on business performance from the perspective of social capital,providing references for successors to adapt to succession pressure,standardize business behaviors,and promote family business growth.