Study On The Relationship Of Intergenerational Inheritance Of Family Business And Innovation Investment, Using Internalization Degree As The Regulating Variable

Facing the fierce competition in the market,innovation is essential for family businesses.Family businesses with the spirit of innovation have the ability to adapt to the times,which means more wealth and the long-lasting prosperity.With the development of China's reform and opening up,China's family businesses have achieved considerable development.At the same time,most of the family businesses that have grown up during the reform and opening up are gradually entering the inheritance stage,making their inheritance issues as a social issue of widespread concern.In China,family businesses are influenced by traditional culture,which pay more attention to the inheritance of blood relationship."Child inheritance fatherhood" is still the mainstream succession mode.Successful generational inheritance is the key to ensure the transmission and continuity of family business wealth,resources and power.Under the mode of “Child inheritance fatherhood”,the second generation participates in business management,which could effectively avoid agency conflicts,reduce costs,and improve business efficiency.Moreover,there is less conflict between the first generation and the second generation,which is a unique advantage in cooperation and communication.It helps to improving the business performance of the enterprise.Therefore,the stage of the business completely will be the key stage for the inheritance of family business.This thesis mainly discusses the impact of family business generational inheritance on the innovation input of enterprises.Firstly,the thesis divides the generational inheritance of family businesses into three stage from the perspective of the "process view",including the participating management stage,the co-management stage and the taking over management stage.Secondly,the generational inheritance of the family business is not a single event.it is a dynamic process of socialization.Phased research and analysis could be more in-depth and more realistic.Therefore,this thesis conducts a theoretical analysis of how each stage of family business' s generational inheritance affects the innovation investment.The co-management stage will reduce the level of corporate investment in innovation;the taking over management stage will promote innovation and increase innovation investment.In addition,the development of economic globalization will inevitably bring new opportunities and challenges for family businesses.This thesis uses the degree of internationalization of companies as a regulating variable to explore its role in the generational inheritance and innovationinvestment of family businesses.Through empirical tests,this thesis finds that:(1)the participating management stage will reduce the level of innovation investment in family business;(2)the co-management stage will reduce the level of innovation investment in family company;(3)the relationship between the taking over management stage and the innovation investment is not significant,but compared to the co-management stage,the negative correlation coefficient is reduced and the negative correlation is weakened;(4)The degree of internationalization plays a positive role in the generational inheritance and innovation investment,the increase in the degree of internationalization will reduce the negative impact in the participating management stage on innovation investment,and reduce the negative impact in the co-management stage on innovation investment.It will also positively regulate the relationship between the taking over management stage and the innovation investment.Based on the empirical results obtained and the actual situation in China,this thesis puts forward the following suggestions: optimize family governance and improve the inheritance plan;family businesses plan internationalization activities in accordance with the international situation,and increase the degree of internationalization of enterprises.The innovation point of this article is that from the perspective of intergenerational inheritance of family businesses,this article treats intergenerational inheritance of family businesses as a dynamic process,divides it into three stages,and studies the impact mechanism of intergenerational inheritance on corporate innovation investment.Compared with the previous related literature,the research is more detailed and in-depth,which is helpful to expand and deepen the research on the innovation of family business.In this paper,when studying the relationship between the intergenerational inheritance of family business and the innovation investment of the business,this article explores the degree of internationalization of the company between the two The related research can help family businesses cultivate international brands,plan international strategies,make precise international innovation decisions,and improve innovation capabilities.