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Management innovations in family firms after CEO successions: Evidence from Japanese SMEs

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  • Uchida, Hirofumi
  • Yamada, Kazuo
  • Zazzaro, Alberto

Abstract

We examine management innovation of family and non-family firms after CEO successions by using data of small- and medium-sized enterprises (SMEs) in Japan. Consistent with predictions based on the resource-based view and agency theory, we find that family firms managed by non-family professional CEO successors are less innovative than those managed by family CEO successors or non-family firms. Further analyses indicate that limited access to family-based resources is a key determinant of the conservativeness of professional CEO successors. Our findings suggest the importance of the congruence of ownership and management in family firms due to CEOs’ access to family-based resources.

Suggested Citation

  • Uchida, Hirofumi & Yamada, Kazuo & Zazzaro, Alberto, 2023. "Management innovations in family firms after CEO successions: Evidence from Japanese SMEs," Japan and the World Economy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:japwor:v:66:y:2023:i:c:s0922142523000154
    DOI: 10.1016/j.japwor.2023.101189
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    More about this item

    Keywords

    Management innovation; Family firm; Succession; CEO origin; Family ownership;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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