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Parenting the Successor: It Starts at Home and Leaves an Enduring Impact on the Family Business

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  • Kristen K. Shanine
  • Kristen Madison
  • James G. Combs
  • Kimberly A. Eddleston

Abstract

Transferring leadership across generations is a defining characteristic of family businesses. Yet many successors underperform, and little is known about why. We extend parental control theory to develop a model of parenting effects in family businesses. Primary dyadic data from successors and subordinates in 119 family businesses, supplemented with 24 interviews with family business leaders, shows that predecessors’ parenting style affects successors’ psychological functioning, which impacts employees’ citizenship and counterproductive behaviors. Among firms that make it to the second generation, the seeds of success are partially sown long before succession takes place, drawing attention to the important role of parenting.

Suggested Citation

  • Kristen K. Shanine & Kristen Madison & James G. Combs & Kimberly A. Eddleston, 2023. "Parenting the Successor: It Starts at Home and Leaves an Enduring Impact on the Family Business," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1093-1131, July.
    • Handle: RePEc:sae:entthe:v:47:y:2023:i:4:p:1093-1131
    DOI: 10.1177/10422587221088772
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