| Over the past 40 years of reform and opening up,Chinese family businesses have achieved a magnificent transformation from nonexistence to excellence and from excellence to strength through their unwavering perseverance and hard work in the fiercely competitive domestic and international environment.They have made indelible contributions to China’s economic growth,social employment,and technological innovation.Family businesses possess the characteristics of both "family" and "enterprise" as social organizations.They not only strive to maximize profits like rational economic actors but also bear the important mission of protecting the emotional and wealth assets of the family and ensuring the perpetuity of the family.However,in the face of limited lifespan,the eternal existence of family businesses cannot be achieved solely by the efforts of the first-generation entrepreneurs.Intergenerational succession becomes the key to the sustainable development of family businesses.Succession is not simply an inheritance and a transition of leadership but also the best opportunity to adjust strategic structures and investment directions.Especially in the context of enterprise transformation and upgrading,Chinese family businesses,which have been predominantly in traditional manufacturing,urgently need to change their development models that rely on cheap labor and resource consumption.They must firmly seize the opportunity of succession and achieve successful transformation through innovation.Intergenerational succession is an important factor influencing family innovation decisions.However,the exact relationship between the two is still inconclusive,which poses higher requirements for exploring the innovative behavior of family businesses under the context of succession.It is worth noting that in an era of increasing environmental issues,the concept of achieving harmonious coexistence between environmental protection and economic development has become deeply ingrained.At this time,green innovation,which combines "green" and "innovation," emerges.However,existing research has rarely incorporated green innovation into the research framework of family business strategic decision-making.Green innovation is a key element in achieving win-win situations for sustainable economic development and environmental protection,as well as the success or failure of family business transformation and upgrading.It is evident that neglecting the important role of green innovation in family business transformation and upgrading weakens our ability to explain family business innovation behavior.On the other hand,existing literature has rarely conducted in-depth investigations into the heterogeneous behavior of enterprises in different stages of intergenerational succession.In fact,intergenerational succession in family businesses is not achieved overnight but is a continuous and complex long-term socialization process.In this dynamic process,the change in the primary decision-maker of the family business fundamentally alters the existing management members,management methods,and management objectives of the enterprise.This has sparked our interest in studying the stage differences in the green innovation performance of family businesses at different stages of intergenerational succession.Therefore,this study focuses on the issue of intergenerational succession in family businesses.Based on the transfer of management rights,we follow the time sequence of "second-generation involvement in management-second-generation assumption of management." Using the progressive framework of "relationship identification-mechanism analysis-consequence testing," we specifically study the stage differences in the green innovation performance of family businesses during intergenerational succession and delve into their underlying mechanisms.Based on this,we examine the economic effects brought about by the changes in green innovation in family businesses at different stages from the perspectives of short-term business performance and long-term value.The findings of this study have important implications for improving the local government’s business environment,accelerating the marketization process in some regions,comprehensively disclosing information related to green innovation,and timely adjusting green innovation investments.The main content and conclusions of this study are as follows:Firstly,this article examines the influence of second-generation involvement in management on green innovation in family businesses,and further investigates the operational logic of their relationship from the perspective of corporate risk-taking.Based on the theory of social emotional wealth,using a multiple regression analysis model,the study focuses on Chinese A-share listed family businesses from 2010 to2020.Firstly,it identifies the relationship between intergenerational succession and green innovation in family businesses,attempting to grasp the overall direction of intergenerational succession family businesses with or without green innovation.This lays the foundation for a comprehensive analysis of the influence of different stages of intergenerational succession on corporate green innovation.Subsequently,it examines in depth the influence of second-generation involvement in management on green innovation in family businesses and its operating mechanism.The results indicate that intergenerational succession family businesses exhibit a negative attitude towards green innovation compared to businesses without intergenerational succession,providing strong evidence for the impact of intergenerational succession on corporate green innovation.Further research reveals that second-generation involvement in management inhibits green innovation behavior in family businesses.The possible reason is that during the stage of second-generation involvement in management,the internal conflicts within the family business result in the depletion of resources,indirectly reducing the level of risk-taking by the family business.At this stage,the family business exhibits risk aversion tendencies and tends to invest in conservative projects rather than high-risk green innovation activities.Additionally,during the stage of second-generation involvement in management,there is no substantial transfer of management power within the family business,and the first generation remains the core figure in the enterprise,significantly constraining the decision-making of the second generation.Secondly,the study explores the impact of second-generation succession in management on green innovation in family businesses.Based on the theory of social emotional wealth and combining social identity theory,upper echelons theory,and embeddedness theory,the study focuses on family businesses where the second generation takes over as chairman and examines in-depth the influence of second-generation succession in management on green innovation in family businesses.The results indicate that compared to non-succession family businesses,family businesses with second-generation succession in management exhibit a more positive attitude towards green innovation.Further research reveals that second-generation social capital plays a positive moderating role between second-generation succession in management and green innovation.The reason is that second-generation succession in management is an important symbol of intergenerational succession in family businesses,and the main contradiction gradually shifts from maintaining internal stability to gaining external competitiveness.At this stage,the family business can utilize its main resources to enhance its core competitiveness.Additionally,inheriting the position of chairman from the first generation endows the second generation with absolute positional authority,but their personal capabilities and legitimacy have not yet been established.At this point,the second generation may use activities such as green innovation to demonstrate their capabilities,gain organizational recognition,and quickly establish their legitimacy.Thirdly,the study explores the impact of heterogeneous green innovation performance in different stages of intergenerational succession on the economic performance of family businesses.Based on the theory of social emotional wealth,the study deeply investigates the economic effects brought by the heterogeneous green innovation performance at different stages.The results indicate that second-generation involvement in management has a promoting effect on short-term business performance but inhibits the improvement of long-term value.Second-generation succession in management inhibits the growth of short-term financial performance but promotes the improvement of long-term value.Furthermore,it is found that green innovation has a mediating effect between intergenerational succession and corporate economic performance.The possible reason is that during the stage of second-generation involvement in management,family businesses face dual pressures of internal turmoil and external transformation and upgrading.They may reduce high-risk investment projects,which maintains steady growth in short-term financial performance but hampers long-term value improvement.On the other hand,second-generation succession in management signifies the first generation’s withdrawal from the power core and the second generation’s autonomy.At this point,the second generation,who may not yet possess sufficient experience and the ability to handle unexpected situations,might struggle to achieve immediate breakthroughs in business performance.However,the smooth succession conveys the determination of the family business to seek permanent development to the outside world,which contributes to the enhancement of long-term value.The academic contributions of this study are as follows:Firstly,this article expands the literature on strategic decision-making in family businesses from the perspective of green innovation.Scholars have primarily focused on the performance of family businesses in internationalization,social responsibility,mergers and acquisitions,and innovation and entrepreneurship.Among them,the research on innovation and entrepreneurship mainly focuses on family-oriented behaviors,second-generation involvement,successor CEO differences,and intergenerational entrepreneurship,examining the performance of family businesses in terms of technological innovation input,technological innovation output,and technological innovation modes.However,in an era of increasing environmental pollution,family businesses should proactively incorporate green upgrading and transformation into their strategic planning.Unlike general innovation driven by technology,green innovation can achieve a win-win goal of environmental protection and economic interests for family businesses,but it also places higher demands on their resources and risk resistance capabilities.Therefore,the existing research conclusions on technological innovation cannot provide direct evidence for the green innovation behavior of family businesses.This article attempts to introduce green innovation into the analytical framework of family business innovation strategies,focusing on the performance of listed family businesses in China’s A-share market in terms of green innovation.It finds that the dominance of social emotional wealth directly determines whether family businesses will actively implement green innovation,and the pursuit of extended social emotional wealth can effectively enhance the enthusiasm and proactiveness of family businesses in implementing green innovation.This research conclusion provides incremental evidence for understanding the heterogeneous performance of family businesses and non-family businesses in green innovation,and also offers valuable reference for the government to improve the business environment,establish sound relevant laws and tax systems to promote family businesses’ active practice of green innovation.Secondly,this study advances the research progress on the antecedents of green innovation in family businesses from the perspective of intergenerational succession.Green innovation behavior in family businesses is a complex process that is deeply influenced by their own resource endowments and the constraints of stakeholders.The mainstream view focuses on social emotional wealth theory,suggesting that family businesses pay more attention to non-economic objectives,thus exhibiting more proactive behavior in green innovation.Some scholars also focus on institutional theory and stakeholder theory,suggesting that external institutional pressures,rather than demand-driven technological innovation,are important drivers of green innovation.However,intergenerational succession is an essential path for family businesses to achieve intergenerational continuity and long-term development,yet existing research has paid little attention to the significant impact of intergenerational succession on family business innovation behavior.In light of this,this study,based on the unique context of intergenerational succession,comparatively analyzes the differential performance of succession family businesses and non-succession family businesses in green innovation,and attempts to explore the important factors driving family businesses’ implementation of green innovation,in addition to social emotional wealth and institutional pressures.The study finds that the green innovation decisions of family businesses depend not only on their pursuit of non-economic objectives and response to external pressures but also be influenced by the life cycle of the businesses.The phenomenon of intergenerational succession impacting green innovation does exist,providing empirical evidence from the field of intergenerational succession for the study of influencing factors in family business green innovation behavior and further advancing the literature on the driving factors of green innovation in family businesses.Thirdly,this study deepens the research on the economic consequences of intergenerational succession by incorporating the perspective of green innovation.Previous research has mostly examined the economic consequences of intergenerational succession using simple dummy variables from perspectives such as debt levels,cash holdings,earnings management,corporate financial performance,capital market reactions,business credit,technological innovation,and strategic entrepreneurship.However,it is evident that few studies have included green innovation behavior in the research framework of the economic consequences of intergenerational succession.In fact,intergenerational succession implies a substantial transfer of control and management rights from one generation to the next,and the intergenerational differences in values,life experiences,educational backgrounds,and other aspects between fathers and sons may influence their attitudes towards green innovation.At the same time,intergenerational succession is a long-term socialization process that combines continuity and complexity.In this process,each stage is influenced by different factors,emphasizes different aspects of inheritance,and generates distinct impacts.Therefore,some scholars have proposed the necessity and importance of studying the economic consequences of intergenerational succession at different stages based on the "process view" of intergenerational succession.In light of this,this study,following the time sequence of "second-generation involvement in management-second-generation assumption of management," and based on the analysis framework of "relationship identification-mechanism analysis-consequence examination," divides intergenerational succession into the stage of second-generation involvement in management and the stage of second-generation assumption of management.It explores the impact of intergenerational succession at different stages on green innovation in family businesses.This study provides a fresh perspective for researching the economic consequences of intergenerational succession in family businesses and offers valuable empirical references for a better understanding of the heterogeneous behavior of family businesses at different stages of intergenerational succession.Fourthly,this study enriches the research on the influence of informal institutions on the heterogeneity of second-generation behavior from the perspective of social capital.Previous research has mainly focused on the legitimacy theory and the upper echelons theory to study the heterogeneous behavior of successors in family businesses from perspectives such as identity differences,educational backgrounds,overseas experiences,and training models.However,the aforementioned studies primarily focus on important factors that influence the level of innovation investment in formal institutional arrangements,neglecting the fact that entrepreneurs are embedded in specific and ongoing social relationship systems when engaging in various activities.Unlike state-owned enterprises,family businesses are more susceptible to institutional discrimination in economic activities,making them highly concerned with the development and accumulation of informal institutions such as social networks.In China,where relationship-based transactions are prevalent,family businesses’ sustainable development will be severely affected if they lack a rich social network.Therefore,it is necessary to introduce the theory of "embeddedness" from the field of new economics to explore the influence mechanism of the social relationship network of second-generation members of family businesses on green innovation in the context of succession.This study takes the social capital of second-generation members of family businesses as the entry point and examines whether informal institutions,from three dimensions: political social capital,financial social capital,and business social capital,can effectively promote green innovation behavior in family businesses.The study found that the second generation’s abundant political social capital brings many policy conveniences to the business,such as government subsidies and tax benefits.Financial social capital can provide financing convenience to the business,while business social capital can help the business obtain industry support.It can be seen that second-generation members with rich social capital are more inclined to enhance green innovation in the business.This finding provides a valuable supplement to the research on the influence of informal institutions on executive heterogeneity and also provides theoretical guidance for family businesses to recognize the importance of social capital. |
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