THE IMPACT OF TRANSGENERATIONAL SUCCESSION ON ENTERPRISE PERFORMANCE IN CHINESE FAMILY BUSINESS

As an important part of the global economy, family business have made a lot of contributions to the world economy. With the deepening of China's reform and opening up, the scale and volume of family business have increased dramatically in the national economy. In recent years, more and more family-owned enterprises have entered the list of “Top 500 Chinese Enterprises” and become an important part of the national economy. As a special enterprise organization, family business has certain characteristics. Most of the Chinese family business were founded in the early stage of China's reform and opening up, and now more and more family business are facing the problem that the founders need to leave the family business due to their advanced age. How to ensure the smooth succession of family business and avoid conflicts and contradictions in the process of succession is an important challenge faced by many family business. How to ensure that family business can continue to develop and maintain a high performance status is of great significance to the founders and their successors, as well as to the Chinese economy. Therefore, this research examines how the characteristics of successors affect enterprise performance based on the context of intergenerational succession in family business. This research is based on a multi-case study in which in-depth interviews were conducted with the founders and successors of five cases, which led to the conclusion that five successor characteristics have an impact on enterprise performance. They are inclusiveness, forward thinking, sociable and good communication, sense of social responsibility and sense of family mission. This finding has significant implications for the training of successors and the management of the succession process in Chinese family business. This study is conducive to the discovery of the mechanism of successor characteristics on enterprise performance as well as to make a realistic contribution to the research on the outcomes of family business in China.