Strategic Changes And Corporate Performance In The Process Of Intergenerational Succession Of Family Business

Since the reform and opening up in China,family businesses have developed from scratch to become a solid force in the national economy and play an important role in economic production and employment.Today,the founders of family businesses have gradually entered the age of “retirement”.Choosing the right heir to take over their own career has become a hot spot,and inheriting the problem is also a problem that family businesses need to face.Only succession problems The successful solution will enable the family business to get out of the "one generation of entrepreneurship,the second generation decline" cycle,thus avoiding the "short-lived" ending.The existing case studies on the intergenerational succession of family businesses are mostly based on the performance of family enterprises before and after the succession,due to the lack of persuasiveness of the time span.Therefore,this paper focuses on the strategic behavior change of family business in the long-term dynamic process of intergenerational succession,and the research goes deep into the intergenerational In the process of succession,the family business will inevitably undergo strategic changes along with the intergenerational succession to cope with the succession problem.The effect of the strategic change will affect the success of intergenerational succession and the future development of the family business,through the performance of the company.The performance describes the effect of the family business in the process of intergenerational succession,and finally the family business intergenerational succession process in the process of the company's strategic behavior and changes in corporate performance are specifically presented to the reader.In this paper,Fuyao Glass Case is selected as the research object.Fuyao Glass has not completed the transfer of family business power.It is still in the process of succession.Therefore,the strategic changes of Fuyao Glass in recent years are more inclined to solve the succession problem and study these strategic changes.Can better understand corporate behavior from the perspective of intergenerational succession.This paper divides the intergenerational succession stage that Fuyao Glass has already passed through,and divides it into two stages of “participation management” and “comanagement”.On the basis of the overall strategy of Fuyao Glass,which focuses on the domestic market and changes the global operation.Specifically,the specific strategic changes implemented by the case companies in these two phases are specifically shown,and many strategic changes are divided into four categories according to the values change,technological change,product and service reform,and structural and system change,and then passed on from generation to generation.The perspective analyzes the motivation of each strategic change,describes the specific manifestations of the inheritors and heirs,and studies the degree of change in specific strategic changes,and then evaluate the extent of strategic changes in family business at different stages of intergenerational succession.Finally,the effects of strategic change are presented in terms of financial performance and market performance,and the results of family business strategic behavior in the process of intergenerational succession are determined.This paper analyzes the strategic changes and company performance in the intergenerational stage of the case company Fuyao Glass through the combination of literature analysis,case analysis and event research.The study found that: First,family businesses will carry out various types of strategic changes during the intergenerational succession period,and the motivation for strategic change comes from both inheritors and heirs.Second,the family business' s strategic change in the “co-management” phase is more significant than the “participation management” phase.Third,family businesses carry out strategic changes in the process of intergenerational succession,achieving better performance in the “co-management” phase,and better corporate performance is often associated with heir-led strategic change.