Based on arguments from both psychology-inspired managerial decision-making literature and stewardship literature, the study argues that although the main performance impact of pre-succession family firm experience is negative, this effect has important boundary conditions. In particular, the relationship takes an inverse u-shaped form for non-family successors. Further, the study reveals that the main negative relationship is stronger when the successors do not have academic education or if the innovation impetus of the firm and industry is high. Hypotheses of the study are tested on a sample of 405 German family firms.
The article is coauthored by Suleika Bort (University of Passau) and Andrew Isaak (Heinrich Heine University Düsseldorf) and can be accessed under the following link as an Open Access article: https://doi.org/10.1016/j.jbusres.2023.114179