The Effects of Trans-generational Conflict on Trans-generational Entrepreneurship Performance from the Perspective of First-generation Entrepreneurs’ Networks: Evidence from China

Abstract

After more than four decades of China’s reform and opening up, many family businesses in China are welcoming the peak of trans-generational inheritance. Therefore, more research is needed to help the second-generation successors avoid the potential negative effect of trans-generational conflicts and keep and maintain the sustainable development of their family businesses. To fill these gaps in the literature, this paper explores the impact of trans-generational conflicts on trans-generational entrepreneurial performance and investigates the moderating role of first-generation entrepreneurs’ business and social networks. Based on a survey data captured from the 221 matched responses from founder and second-generation successors dyads in China, we found that both cognitive and process conflicts have negative effects on trans-generational entrepreneurial performance, and process conflict has a greater negative impact than cognitive conflict. Furthermore, we found that the first-generation entrepreneurs’ business and social networks independently alleviate the negative impact of cognitive conflict on trans-generational entrepreneurial performance. By examining the three-way inaction effect, we also found that the negative effect of process conflict on trans-generational entrepreneurial performance is alleviated. Theoretical and managerial implications are also provided.