IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i9p2472-2488.html
   My bibliography  Save this article

The Influence of Succession Planning, Knowledge Sharing and Innovation Capability to Enhance Sustainability of Small and Medium-Sized Family Businesses’ Socioemotional Wealth

Author

Listed:
  • Lai-Kuan Kong

    (Faculty of Business and Management, Universiti Teknologi MARA Pahang Branch (Raub Campus), Raub, Pahang, Malaysia.)

  • Nurul Nadia Abd Aziz

    (Faculty of Business and Management, Universiti Teknologi MARA Pahang Branch (Raub Campus), Raub, Pahang, Malaysia.)

  • Nor Khairunnisa Mat Yunus

    (Faculty of Business and Management, Universiti Teknologi MARA Pahang Branch (Raub Campus), Raub, Pahang, Malaysia.)

  • Zaidatul Nadiah Abu Yazid

    (Faculty of Business and Management, Universiti Teknologi MARA Pahang Branch (Raub Campus), Raub, Pahang, Malaysia.)

  • Soon-Yew Ju

    (Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA Pahang Branch (Raub Campus), Raub, Pahang, Malaysia)

Abstract

Family businesses are known for prioritizing non-financial goals, such as socioemotional wealth (SEW). However, many small and medium-sized family businesses (SMFBs) face challenges like insufficient succession planning and reluctance to engage in innovation and knowledge sharing. While research on SEW is extensive, limited studies explore the relationship between succession planning and SEW, as well as the role of innovation capability in mediating the link between knowledge sharing and SEW in SMFBs. This study addresses these gaps by surveying 118 Malaysian SMFBs through non-probability sampling. In order to guarantee the data’s representativeness of SMFBs, the questionnaire was pre-tested by specialists who included numerous screening questions and inclusion criteria for sample selection. The IBM SPSS Statistics and Smart-PLS software were employed to analyze the data. The results indicated that SEW attainment was influenced by knowledge sharing, whereas SEW was not influenced by succession planning. It was also discovered that the relationship between knowledge sharing and SEW attainment was mediated by innovation capability. These findings challenge traditional views on succession planning and highlight the importance of innovation and knowledge sharing for the sustainability of family businesses. Individuals who are involved in family enterprises can make more informed decisions and take actions that contribute to the long-term success, sustainability, and well-being of their organizations by comprehending and implementing these findings.

Suggested Citation

  • Lai-Kuan Kong & Nurul Nadia Abd Aziz & Nor Khairunnisa Mat Yunus & Zaidatul Nadiah Abu Yazid & Soon-Yew Ju, 2024. "The Influence of Succession Planning, Knowledge Sharing and Innovation Capability to Enhance Sustainability of Small and Medium-Sized Family Businesses’ Socioemotional Wealth," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 2472-2488, September.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:9:p:2472-2488
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-9/2472-2488.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/the-influence-of-succession-planning-knowledge-sharing-and-innovation-capability-to-enhance-sustainability-of-small-and-medium-sized-family-businesses-socioemotional-wealth/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    2. repec:eme:mrn000:01409170710722955 is not listed on IDEAS
    3. Benn Lawson & Danny Samson, 2001. "Developing Innovation Capability In Organisations: A Dynamic Capabilities Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 377-400.
    4. Shainaz Firfiray & Cristina Cruz & Ionela Neacsu & Luis Gomez-Mejia, 2018. "Is nepotism so bad for family firms? A socioemotional wealth approach," Post-Print hal-02001706, HAL.
    5. Hsiu‐Fen Lin, 2007. "Knowledge sharing and firm innovation capability: an empirical study," International Journal of Manpower, Emerald Group Publishing Limited, vol. 28(3/4), pages 315-332, June.
    6. Oura, Mauricio Massao & Zilber, Silvia Novaes & Lopes, Evandro Luiz, 2016. "Innovation capacity, international experience and export performance of SMEs in Brazil," International Business Review, Elsevier, vol. 25(4), pages 921-932.
    7. Debicki, Bart J. & Kellermanns, Franz W. & Chrisman, James J. & Pearson, Allison W. & Spencer, Barbara A., 2016. "Development of a socioemotional wealth importance (SEWi) scale for family firm research," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 47-57.
    8. Howard Van Auken & Antonia Madrid-Guijarro & Domingo Garcia-Perez-de-Lema, 2008. "Innovation and performance in Spanish manufacturing SMEs," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 8(1), pages 36-56.
    9. Jean‐Luc Arregle & Michael A. Hitt & David G. Sirmon & Philippe Very, 2007. "The Development of Organizational Social Capital: Attributes of Family Firms," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 73-95, January.
    10. Laura Zapata-Cantu & Ramón Sanguino & Ascensión Barroso & Laura Nicola-Gavrilă, 2023. "Family Business Adapting a New Digital-Based Economy: Opportunities and Challenges for Future Research," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 408-425, March.
    11. Zhang, Man & Hartley, Janet L., 2018. "Guanxi, IT systems, and innovation capability: The moderating role of proactiveness," Journal of Business Research, Elsevier, vol. 90(C), pages 75-86.
    12. Shaker A. Zahra & James C. Hayton & Donald O. Neubaum & Clay Dibrell & Justin Craig, 2008. "Culture of Family Commitment and Strategic Flexibility: The Moderating Effect of Stewardship," Entrepreneurship Theory and Practice, , vol. 32(6), pages 1035-1054, November.
    13. Zahra, Shaker A. & Neubaum, Donald O. & Larraneta, Barbara, 2007. "Knowledge sharing and technological capabilities: The moderating role of family involvement," Journal of Business Research, Elsevier, vol. 60(10), pages 1070-1079, October.
    14. Jean-Luc Arrègle & Michael Hitt & David Sirmon & Philippe Véry, 2007. "The Development of Organizational Social Capital : Attributes of Family Firms," Post-Print hal-02312687, HAL.
    15. Villalonga, Belen, 2004. "Intangible resources, Tobin's q, and sustainability of performance differences," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 205-230, June.
    16. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    17. Wen-Bao Lin, 2013. "Research on knowledge sharing and interpersonal relationships: empirical study of family firms and non-family firms," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(1), pages 151-166, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Kallmuenzer & Ursula Scholl-Grissemann, 2017. "Disentangling antecedents and performance effects of family SME innovation: A knowledge-based perspective," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1117-1138, December.
    2. Victoria Antin Yates & James M. Vardaman & James J. Chrisman, 2023. "Social network research in the family business literature: a review and integration," Small Business Economics, Springer, vol. 60(4), pages 1323-1345, April.
    3. Cunningham, James & Seaman, Claire & McGuire, David, 2016. "Knowledge sharing in small family firms: A leadership perspective," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 34-46.
    4. Andrea Lionzo & Francesca Rossignoli, 2013. "Knowledge integration in family SMEs: an extension of the 4I model," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(3), pages 583-608, August.
    5. Sanchez-Famoso, Valeriano & Pittino, Daniel & Chirico, Francesco & Maseda, Amaia & Iturralde, Txomin, 2019. "Social capital and innovation in family firms: The moderating roles of family control and generational involvement," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    6. Rajan, Bharath & Salunkhe, Uday & Kumar, V., 2023. "Understanding customer engagement in family firms: A conceptual framework," Journal of Business Research, Elsevier, vol. 154(C).
    7. Ismael Barros-Contreras & Héctor Pérez-Fernández & Natalia Martín-Cruz & Juan Hernangómez B., 2023. "Can we make family social capital flourish? The moderating role of generational involvement," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 655-673, September.
    8. Daspit, Joshua J. & Long, Rebecca G. & Pearson, Allison W., 2019. "How familiness affects innovation outcomes via absorptive capacity: A dynamic capability perspective of the family firm," Journal of Family Business Strategy, Elsevier, vol. 10(2), pages 133-143.
    9. Priya Dhamija Gupta & Sonali Bhattacharya, 2016. "Impact of Knowledge Management Processes for Sustainability of Small Family Businesses: Evidences from the Brassware Sector of Moradabad (India)," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-46, December.
    10. Francesco Chirico & Carlo Salvato, 2016. "Knowledge Internalization and Product Development in Family Firms: When Relational and Affective Factors Matter," Entrepreneurship Theory and Practice, , vol. 40(1), pages 201-229, January.
    11. Ethiopia Segaro, 2012. "Internationalization of family SMEs: the impact of ownership, governance, and top management team," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(1), pages 147-169, February.
    12. Jean-Luc Arregle & Francesco Chirico & Liena Kano & Sumit K. Kundu & Antonio Majocchi & William S. Schulze, 2021. "Family firm internationalization: Past research and an agenda for the future," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1159-1198, August.
    13. Orlando Llanos-Contreras & Hugo Baier-Fuentes & María Huertas González-Serrano, 2022. "Direct and indirect effects of SEWi, family human capital and social capital on organizational social capital in small family firms," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1403-1418, December.
    14. Duong, Phuong-Anh Nguyen & Voordeckers, Wim & Huybrechts, Jolien & Lambrechts, Frank, 2022. "On external knowledge sources and innovation performance: Family versus non-family firms," Technovation, Elsevier, vol. 114(C).
    15. Simon, Alexandra & Marquès, Pilar & Bikfalvi, Andrea & Dolors Muñoz, M., 2012. "Exploring value differences across family firms: The influence of choosing and managing complexity," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 132-146.
    16. Wouter Broekaert & Petra Andries & Koenraad Debackere, 2016. "Innovation processes in family firms: the relevance of organizational flexibility," Small Business Economics, Springer, vol. 47(3), pages 771-785, October.
    17. DODERO ORTIZ DE ZEVALLOS Gino Felix & CLEMENTE-ALMENDROS José Antonio & BAHAMONDES ROSADO María Emilia, 2023. "The Covid-19 Crisis And The Financial Impact On Family Firms," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(2), pages 86-108, August.
    18. Allison W. Pearson & Laura E. Marler, 2010. "A Leadership Perspective of Reciprocal Stewardship in Family Firms," Entrepreneurship Theory and Practice, , vol. 34(6), pages 1117-1124, November.
    19. Hu, Qilin & Hughes, Mathew (Mat) & Hughes, Paul, 2022. "Family-unique resources, marketing resources, and family owners’ willingness to pursue radical innovation: A model and test," Journal of Business Research, Elsevier, vol. 146(C), pages 264-276.
    20. Barros, Ismael & Hernangómez, Juan & Martin-Cruz, Natalia, 2016. "A theoretical model of strategic management of family firms. A dynamic capabilities approach," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 149-159.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:9:p:2472-2488. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.