The Influence of Succession Ability Cultivation, Family Governance Structure and Enterprise Succession Success through Innovation Ability in Family Enterprises

  • Authors

    • Xiaoxia Chen College of Innovation and Management, Suan Sunandha Rajabhat University, Thailand
    • Chaithanaskorn Phawitpiriyakliti College of Innovation and Management, Suan Sunandha Rajabhat University, Thailand
    • Hongchun Zheng The Hong Kong Polytechnic University, China
    • Chukui Chen The Hong Kong Polytechnic University, China
    • Pirayut Pattanayanon College of Management, Mahidol University. Thailand
    • Supin Chaisiripaibool Graduate College of Management, Sripatum University, Thailand
    • Sid Terason Faculty of Sports and Health Science, Kasetsart University, Thailand
    https://doi.org/10.14419/d0ymx622

    Received date: November 3, 2025

    Accepted date: December 25, 2025

    Published date: December 31, 2025

  • Family Business Succession; Innovation Ability; Succession Ability Cultivation; Family Governance Structure; Chinese Family Enterprises

  • Abstract

    Family business succession represents a critical challenge threatening enterprise continuity and economic stability, with particular complexi-‎ty in innovation-intensive environments. This study examines how succession ability cultivation and family governance structure influence ‎enterprise succession success through innovation ability's mediating role in family enterprises in Shenzhen, China. Drawing on resource-‎based theory, agency theory, and stewardship theory, we develop an integrated framework proposing that succession antecedents influence ‎outcomes both directly and indirectly through innovation capabilities. Using quantitative survey data from family business stakeholders ‎representing diverse organizational roles, generations, and industries, we employ partial least squares structural equation modeling to test ‎hypothesized relationships. Results demonstrate that both succession ability cultivation and family governance structure positively influence ‎enterprise succession success, with innovation ability partially mediating these relationships, accounting for approximately half of total ef-‎fects. The findings reveal that successful succession in innovation-intensive contexts requires not only systematic successor preparation and ‎effective governance mechanisms but critically depends on developing innovation capabilities that enable adaptation and renewal during ‎leadership transitions. This study contributes to succession literature by identifying innovation as a central mediating mechanism linking ‎traditional succession factors to outcomes, demonstrating the need for context-specific succession theories acknowledging environmental ‎contingencies. Practical implications suggest family enterprises should adopt integrated approaches combining innovation-oriented succes-‎sor development, governance structures balancing stability with flexibility, and strategic prioritization of innovation capabilities. The re-‎search provides actionable guidance for family business owners, professional advisors, policymakers, and educators supporting sustainable ‎generational transitions in dynamic business environments‎.

  • References

    1. Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. The Journal of Financial and Quantitative Analysis, 31(3), 377-397. https://doi.org/10.2307/2331397.
    2. Baltazar, J. R., Fernandes, C. I., Ramadani, V. et al. (2023). Family business succession and innovation: a systematic literature review. Review of Managerial Science, 17, 2897-2920. https://doi.org/10.1007/s11846-022-00607-8.
    3. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108.
    4. Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.
    5. Bennedsen, M., Fan, J. P. H., Jian, M., & Yeh, Y. H. (2015). The family business map: Framework, selective survey, and evidence from Chinese family firm succession. Journal of Corporate Finance, 33, 212-226. https://doi.org/10.1016/j.jcorpfin.2015.01.008.
    6. Cabrera-Suárez, K., De Saá-Pérez, P., & García-Almeida, D. (2001). The succession process from a resource-and knowledge-based view of the fam-ily firm. Family Business Review, 14(1), 37-48. https://doi.org/10.1111/j.1741-6248.2001.00037.x.
    7. Calabrò, A., Minichilli, A., Amore, M. D., & Brogi, M. (2018). The courage to choose! Primogeniture and leadership succession in family firms. Strategic Management Journal, 39(7), 2014-2035. https://doi.org/10.1002/smj.2760.
    8. Calabrò, A., Vecchiarini, M., Gast, J., Campopiano, G., De Massis, A., & Kraus, S. (2019). Innovation in family firms: A systematic literature re-view and guidance for future research. International Journal of Management Reviews, 21(3), 317-355. https://doi.org/10.1111/ijmr.12192.
    9. Carney, M., Zhao, J., & Zhu, L. (2019). Lean innovation: Family firm succession and patenting strategy in a dynamic institutional landscape. Jour-nal of Family Business Strategy, 10(4), 100247. https://doi.org/10.1016/j.jfbs.2018.03.002.
    10. Chen, J., & Liu, L. (2020). Regional innovation ecosystems in emerging economies: Evidence from China. Research Policy, 49(8), 104035. https://doi.org/10.1016/j.respol.2020.104035.
    11. Chrisman, J. J., Chua, J. H., & De Massis, A. (2021). Innovation and family enterprises: A review and research agenda. Academy of Management Perspectives, 35(4), 585-599.
    12. Chrisman, J. J., Chua, J. H., & Sharma, P. (2005). Trends and directions in the development of a strategic management theory of the family firm. Entrepreneurship Theory and Practice, 29(5), 555-576. https://doi.org/10.1111/j.1540-6520.2005.00098.x.
    13. Clauss, T., Kraus, S., Kallinger, F. L., & Bican, P. M. (2022). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox. Journal of Innovation & Knowledge, 7(2), 100171. https://doi.org/10.1016/j.jik.2022.100171.
    14. Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates. https://doi.org/10.4324/9780203771587.
    15. Cordeiro, J. J., Profumo, G., & Tutore, I. (2020). Board gender diversity and corporate environmental performance: The moderating role of family and dual-class majority ownership structures. Business Strategy and the Environment, 29(3), 1127-1144. https://doi.org/10.1002/bse.2417.
    16. Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20-47. https://doi.org/10.5465/amr.1997.9707180258.
    17. De Massis, A., Frattini, F., & Lichtenthaler, U. (2013). Research on technological innovation in family firms: Present debates and future directions. Family Business Review, 26(1), 10-31. https://doi.org/10.1177/0894486512466258.
    18. De Massis, A., Frattini, F., Kotlar, J., Petruzzelli, A. M., & Wright, M. (2016). Innovation through tradition: Lessons from innovative family busi-nesses and directions for future research. Academy of Management Perspectives, 30(1), 93-116. https://doi.org/10.5465/amp.2015.0017.
    19. Dou, J., & Li, S. (2013). The succession process in Chinese family firms: A guanxi perspective. Asia Pacific Journal of Management, 30(3), 893-917. https://doi.org/10.1007/s10490-012-9287-7.
    20. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Market-ing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104.
    21. Geisser, S. (1974). A predictive approach to the random effect model. Biometrika, 61(1), 101-107. https://doi.org/10.1093/biomet/61.1.101.
    22. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203.
    23. Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems, 116(1), 2-20. https://doi.org/10.1108/IMDS-09-2015-0382.
    24. Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation model-ing. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8.
    25. Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1-55. https://doi.org/10.1080/10705519909540118.
    26. Hu, Q., & Hughes, M. (2020). Radical innovation in family firms: A systematic analysis and research agenda. International Journal of Entrepreneur-ial Behavior & Research, 26(6), 1199-1234. https://doi.org/10.1108/IJEBR-11-2019-0658.
    27. Hu, Q., Hughes, M., & Hughes, P. (2022). Family-unique resources, marketing resources, and family owners' willingness to pursue radical innova-tion: A model and test. Journal of Business Research, 146, 264-276. https://doi.org/10.1016/j.jbusres.2022.03.045.
    28. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Eco-nomics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X.
    29. Le Breton-Miller, I., Miller, D., & Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28(4), 305-328. https://doi.org/10.1111/j.1540-6520.2004.00047.x.
    30. Li, Z., Mustapha, M., Sheikh Hassan, A. F., & Saidin, S. F. (2025). The influence of corporate governance on succession planning and organization-al performance in Chinese family firms. Management Decision, 63(7), 2392-2411. https://doi.org/10.1108/MD-02-2024-0412.
    31. Madison, K., Daspit, J. J., & Turner, K. (2022). Agency theory in family firm innovation: A socioemotional wealth perspective. Journal of Business Research, 148, 208-224. https://doi.org/10.1016/j.jbusres.2022.04.056.
    32. Newman, D. A. (2014). Missing data: Five practical guidelines. Organizational Research Methods, 17(4), 372-411. https://doi.org/10.1177/1094428114548590.
    33. Nitzl, C., Roldan, J. L., & Cepeda, G. (2016). Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisti-cated models. Industrial Management & Data Systems, 116(9), 1849-1864. https://doi.org/10.1108/IMDS-07-2015-0302.
    34. Pahnke, A., Schlepphorst, S., & Schlömer-Laufen, N. (2024). Family business successions between desire and reality. Journal of Business Venturing Insights, 21, e00457. https://doi.org/10.1016/j.jbvi.2024.e00457.
    35. Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63, 539-569. https://doi.org/10.1146/annurev-psych-120710-100452.
    36. Rogelberg, S. G., & Stanton, J. M. (2007). Introduction: Understanding and dealing with organizational survey nonresponse. Organizational Re-search Methods, 10(2), 195-209. https://doi.org/10.1177/1094428106294693.
    37. Scholes, L., Hughes, M., Wright, M., De Massis, A., & Kotlar, J. (2021). Family management and family guardianship: Governance effects on fami-ly firm innovation strategy. Journal of Family Business Strategy, 12(2), 100389. https://doi.org/10.1016/j.jfbs.2020.100389.
    38. Schumpeter, J. A. (1934). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle. Harvard University Press.
    39. Sharma, P., Chrisman, J. J., & Chua, J. H. (2003). Predictors of satisfaction with the succession process in family firms. Journal of Business Ventur-ing, 18(5), 667-687. https://doi.org/10.1016/S0883-9026(03)00015-6.
    40. Sharma, P., & Salvato, C. (2013). Family firm longevity: A balancing act between continuity and change. In P. Fernández Pérez & A. Colli (Eds.), The endurance of family businesses: A global overview (pp. 34-56). Cambridge University Press. https://doi.org/10.1017/CBO9781139794848.004.
    41. Shenzhen Municipal Government. (2020). Shenzhen innovation and entrepreneurship development report. Shenzhen Statistical Bureau.
    42. Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society: Series B (Methodologi-cal), 36(2), 111-133. https://doi.org/10.1111/j.2517-6161.1974.tb00994.x.
    43. Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40-49. https://doi.org/10.1016/j.lrp.2017.06.007.
    44. Wang, Y., Watkins, D., Harris, N., & Spicer, K. (2004). The relationship between succession issues and business performance: Evidence from UK family SMEs. International Journal of Entrepreneurial Behaviour and Research, 10(1/2), 59-84. https://doi.org/10.1108/13552550410521380.
    45. Xu, N., Yuan, Q., Jiang, X., & Chan, K. C. (2015). Founder's political connections, second generation involvement, and family firm performance: Evidence from China. Journal of Corporate Finance, 33, 243-259. https://doi.org/10.1016/j.jcorpfin.2015.01.004.
    46. Zellweger, T. (2017). Managing the family business: Theory and practice. Edward Elgar Publishing. https://doi.org/10.4337/9781783479665.
    47. Zhao, J., Carney, M., Zhang, S., & Zhu, L. (2020). How does an intra-family succession affect strategic change and performance in China's family firms? Asia Pacific Journal of Management, 37(2), 363-389. https://doi.org/10.1007/s10490-018-9568-x.
    48. Zybura, J., Zybura, N., Ahrens, J. P., & Woywode, M. (2021). Innovation in the post-succession phase of family firms: Family CEO successors and leadership constellations as resources. Journal of Family Business Strategy, 12(2), 100336. https://doi.org/10.1016/j.jfbs.2020.100336.
    49. Cho JH, Chang SA, Kwon HS, Choi YH, Ko SH, Moon SD, Yoo SJ, Song KH, Son HS, Kim HS, Lee WC, Cha BY, Son HY & Yoon KH (2006), Long-term effect of the internet-based glucose monitoring system on HbA1c Reduction and glucose stability: a 30-month follow-up study for dia-betes management with a ubiquitous medical care system. Diabetes Care 29, 2625–2631. https://doi.org/10.2337/dc05-2371.

  • Downloads

  • How to Cite

    Chen , X. ., Phawitpiriyakliti , C. ., Zheng , H. ., Chen , C., Pattanayanon , P. ., Chaisiripaibool , S. ., & Terason , S. . (2025). The Influence of Succession Ability Cultivation, Family Governance Structure and Enterprise Succession Success through Innovation Ability in Family Enterprises. International Journal of Accounting and Economics Studies, 12(8), 952-963. https://doi.org/10.14419/d0ymx622