Shared identity, family influence, and the transgenerational intentions in family firms

Abstract

A family's transgenerational intention (TI) to pass ownership of the firm to the next generation of family members is the defining characteristic of a family. TI reflects a family's intention to engage in succession planning, which is the primary predictor for succession success. In this study, we draw on psychological ownership theory to develop and test a model of a family's TI. In the model, we argue that family influence impacts TI through shared identity. We also argue that a family firm CEO's relationship to the family (by blood vs. marriage vs. hire) moderates the relationship between shared identity and TI. We tested our hypotheses and the model on a sample of North American family firms and found support for most hypotheses.