The Motivation And Decision Influence Of Intergenerational Succession In Family Businesses

With the help of case study method,text analysis method,literature analysis method and comparative analysis method,this paper studies the impact of intergenerational inheritance of family business on corporate decision-making,mainly focusing on the following three questions:1.What are the motivations for choosing this inheritance model?2.What is the impact of intergenerational inheritance on corporate decision-making?3.How intergenerational inheritance affects business performance.Regarding question 1:The frequent occurrence of pharmaceutical industry policies has affected the industry pattern,bringing opportunities and challenges to Jointown;In this context,in order to seize market opportunities,Jointown launched a digital transformation strategy,which put forward higher requirements for talent demand;However,in the face of such a difficult and complex transformation task,the second generation of the family has limited ability and is not up to the task;At this time,Jointown has always attached importance to and cultivated talents,which has reserved a group of excellent professional managers for Jointown,and provided talent capital reserves for Jointown at the critical moment of promoting strategic transformation.Therefore,Jointown has chosen the external management inheritance model of "family ownership,professional manager management as the mainstay,and family member management as the supplement".Regarding question 2:Professional managers tend to play the role of big stewards of family enterprises,focusing on the long-term development of family enterprises,emphasizing the development of new products,increasing innovation,focusing on maintaining corporate reputation and expanding business scope.Therefore,the inheritance model of "professional manager management" has prompted Jointown to hire more digital talents,clarify digital transformation project groups,and increase investment in digital transformation R&D,so as to accelerate digital transformation.Accelerate the R&D process by accelerating the development of new pharmaceutical products,hiring more R&D personnel and increasing R&D investment;Accelerate the expansion of business scope by promoting Jointown to develop distribution business sinking markets,open new application scenarios for tripartite logistics business,and accelerate integration construction;Encourage Jointown to comprehensively adjust the remuneration system and improve information disclosure to improve corporate governance;Encourage Jointown to increase the amount of social donations,so as to increase social capital investment and maintain corporate reputation.Regarding question 3:"Focusing on professional manager management"inheritance model will affect corporate performance by influencing corporate decisionmaking.Decisions such as comprehensively improving corporate governance,expanding business scenarios,and promoting digital transformation have led to a steady increase in the company’s revenue scale,stable profitability,and significant improvement in operational efficiency.However,decisions such as increasing R&D investment and increasing social donations have played a negative role in profits in a short period of time,affecting short-term profitability,and the long-term effect is unknown.The innovation points of this paper are as follows:1.Based on the case analysis,this paper conducts a multi-faceted study on the impact of intergenerational inheritance of family enterprises on corporate decision-making,such as innovation decisionmaking,strategic decision-making,social capital investment decision-making,governance decision-making,etc.,rather than being limited to the study of a single decision.2.When studying the impact of intergenerational inheritance on corporate decision-making,this paper adopts the method of text analysis,and studies the textual information about corporate decision-making in the annual report,which makes the conclusion more convincing;In addition,when creating the dictionary of Jointown,this paper does not directly apply the ready-made dictionary of existing literature,but by comparing and analyzing the word frequency difference between the annual report corpus of Jointown and the balanced corpus,and then creates an exclusive dictionary of Jointown’s annual report,which is more in line with the specific context of Jointown,making the quantitative results more convincing.3.This paper not only studies the impact of intergenerational inheritance on corporate decision-making,but also further studies its impact on corporate performance and the impact path.