A Study On The Effect Of Intergenerational Succession On The Listed Family Firm's Technological Innovation

With the gradual progress of reform and opening and the market economy,a large number of private enterprises have been spawned.The vast majority of them are controlled by business owners and families,making the family firm an.economy that cannot be ignored.However,after nearly 40 years of development since the reform and opening,most of the founders of family firms are close to nail in China.More and more family firms are facing the problem of succession and replacement.Due to the growth environment,values and modern management concepts,the traditional "father to son" model are facing difficulties in inheriting.A large number of researches show that only to improve the innovation ability of enterprises and rely on the sustainable development of innovation road,Chinese family firms have emerged from the predicament,turned crises into an important means of safety.And improving business technological innovation is also a response to market challenges and the main way to make enterprises growing.However,few researches have paid enough attention to the change and internal mechanism of the enterprise technological innovation strategy in family succession.In addition,the personal social capital is a special resource.It is an indispensable resource for heirs to establish their own authority in the process of inheritance and win the trust and support of stakeholders.However,few studies have analyzed the personal social capital to impact of Enterprise Innovation Strategy.Focusing on the above two major issues,this paper is based on the three-stage model of Wang Xiangyao and Jin Yihe's intergenerational transmission,takes the family-based enterprises as the research object and the social emotional wealth theory,and divides the process of family succession into Involvement Management,Co�management and Takeover Management,Then it introduced the regulatory variables of personal social capital to study the different stages of succession process that is to promote or inhibit innovation.Based on 843 sample data of family firms in Shenzhen and Shanghai A-share listed from 2012 to 2016,using STATA13.0 to analyze the collected data,the main conclusions are as follows:(1)Heirs initially entered into the senior management of family-owned enterprises,participating in business management and strategic decision-making or jointly managing family-owned enterprises with their successors,which would hinder their investment in R&D funds and negatively affect the technological innovation of family-owned enterprises;The chairman of the board of directors is completely independent and responsible for the management of family firms.Based on the long-term competitiveness of enterprises,the ability to adapt to the environment and the pursuit of new business opportunities,enterprises will increase their investment in research and development,which will have a positive impact on the technological innovation of family firms.(2)The successor's personal social capital plays a positive regulatory role in the Involvement Management,Co�management the relationship between the technological innovation of enterprises,and the heirs have the richer social capital,and the weaker the negative effect of intergenerational inheritance on the technological innovation level of enterprises.Therefore,the corporate heir can raise the successor's personal social capital by consciously cultivating the successor's pre-emptive ability and accumulating the relationship resources,so as to successfully accomplish the family succession.