The influence of transgenerational succession intentions on the succession planning process: The moderating role of high-quality relationships

Abstract

Socioemotional wealth (SEW) is an important point of reference for decision-making in family firms. This study shows that the SEW dimension of renewing family bonds through dynastic succession is positively related to the level of succession planning in a family firm. However, the link between the intention for transgenerational succession and the existence of such planned processes does not appear to be as straightforward as predicted. Therefore, by drawing on relational systems theory, we argue that high-quality relationships will positively moderate the expected positive effect of the intention for transgenerational succession on the level of succession planning in a family firm. Our results partly confirm this argument.