Cultural alignment and intergenerational succession in family firms: a game-theoretical experiment

• Tipo: Artigo em Revista Científica Internacional
• Data: 2023-05

Autores

Jayantilal, S (Autor) Outra; Jorge, SF (Autor) Outra; Lourenco, D (Autor) FEP; Botelho, A (Autor) Outra; Banegil, TM (Autor) Outra

Revista

Título: Journal of Family Business Management

Vol. 13 Nº 2

Páginas: 356-372

ISSN: 2043-6238

Editora: Emerald

Indexação

ISI Web of Knowledge - 5 Citações

Scopus - 5 Citações

Outras Informações

ID Authenticus: P-00W-EWP

DOI: 10.1108/jfbm-12-2021-0154

Abstract (EN): Purpose The study aims to investigate the effect of cultural alignment and value congruency between children and founder on intergenerational succession and on the observation of family optimal outcomes. Design/methodology/approach A game-theoretical approach is used to develop a sequential game modeling the strategic interactions behind successor selection. The authors test its main predictions by conducting an experiment with 75 subjects. Findings A theoretical prediction that misalignment between children and founder leads to outcomes without intergenerational succession, or to outcomes with intergenerational succession that are not family optimal. These predictions are buttressed by our experiment, which also found evidence that the family optimal outcome is focal when there are multiple equilibria. Research limitations/implications No light is thrown on the sources of cultural (mis)alignment, but only on some of its consequences. Further studies of a different nature are needed to better understand the former. Practical implications Cultural diffusion and value congruency within the family should be timely fostered to promote harmony during the succession process and raise the chances of successful succession. Originality/value The cultural alignment and value congruency between incumbent and successors is treated as shaping the incentives that both types of agents face in the successor-selection process. Further, experimental techniques have not been used to test the results obtained in games exploring issues in family firm succession. This paper aims to begin filling this gap.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 17