Project R-14042

Next-generation family firm leaders and their impact on family firm performance (Research)

Drawing on behavioral agency theory, generational cohort theory, human capital theory, and imprinting theory, this study explores how the family firm leaders of the future will affect the performance of their family firms. More specifically, four scientific research objectives are examined. The first objective is to construct a new measure combining the financial and non-financial (socioemotional) aspects of family firm performance. This new performance measure can later be used concerning the second and third scientific objectives, i.e., to examine how the generational cohort and prior work experience of the next-generation family firm leaders affect the performance of their family businesses. The fourth objective is to unravel the imprint of the predecessor's generational shadow on the next-generation family firm leader and to assess the direct effect and interaction effect (with generational cohort and prior work experience) of generational shadow on family firm performance. Combining quantitative and qualitative research to achieve these scientific objectives, this study contributes to the ongoing debate about the pivotal role of future family firm successors. Moreover, it extends the knowledge about the effect of the next-generation family firm leaders on the performance of their family firms and broadens our understanding of how to ensure competent family leadership across generations.

01 September 2023 - 31 August 2027