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The Effects of Family Firm CEO Traditionality on Successor Choice: The Moderating Role of Socioemotional Wealth

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Abstract

Drawing on upper echelons theory, this study examines how the traditionality of family chief executive officers (CEOs) influences the selection of their successors, and how this relationship is moderated by two dimensions of socioemotional wealth. Recognizing the central role of CEOs in determining successors, we show that a family CEO’s cultural values regarding traditionality have a significant positive effect on the probability that a family member is chosen as successor. We find that this relationship is strengthened by the family members’ identification with the firm and weakened by the family members’ sense of dynasty. Our contributions to theory and practice are discussed.

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[Lu, Feifei] Shanghai Univ, Shanghai, Peoples R China; Univ Technol Sydney, Sydney, NSW, Australia

[Kwan, Ho Kwong] China Europe Int Business Sch CEIBS, Shanghai, Peoples R China

[Zhu, Zhu] Montclair State Univ, Montclair, NJ USA


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Source

Family Business Review

ISSN:0894-4865

Year:2020

Issue:OnlineFirst

ESI Discipline:ECONOMICS & BUSINESS;

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