Perceived Parental Behaviors and Next-Generation Engagement in Family Firms: A Social Cognitive Perspective

Abstract

Next-generation engagement is a key contributor to the success and continuity of family firms. Family relationships are an important factor in shaping such engagement. However, we know little as to how this engagement process unfolds, especially during the formative years of next-generation members. Using the principles of social cognitive theory and drawing on the career development, organizational behavior, and family business literature, we theorize the indirect influence of perceived parental support and psychological control on next-generation engagement in family firms through the mediating variables of self-efficacy and commitment to the family business. We discuss several possible avenues to test and extend this model in future research.

Social Structures, Social Relationships, and Family Firms

“…They also note that cultures, particularly those based on hierarchical authority, collectivism, and ethnicity can have a major role in shaping family institutions. Thus, Soleimanof et al's commentary complements the article by Kotlar and Sieger, as well as that of Garcia et al (2019), and suggests that research on how family institutions and culture influence the entrepreneurial behavior of both family members and nonfamily members would be useful.…”

“…Taken to the extreme, highly committed employees may also be those that are less competent and require the guidance of a legitimate leader to reach high levels of task performance. However, as is the case for the Garcia et al (2019) article, the article by McLarty et al (2019) does not take individual capabilities into account. In family firms, employees with lower commitment may be those with higher capabilities who are only there until more promising job prospects in nonfamily firms come along.…”

Entrepreneurship and Family Role: A Systematic Review of a Growing Research

“…In the current context, characterized by an aging population and the desire of many entrepreneurs to transfer the family business to their children, this result is worrying (Garcia et al, 2018).…”

“…It is important to understand that the factors that influence the intentions of the members of the next generation to undertake an entrepreneurial career requires a systemic analysis that also considers the behaviors of their parents (Nordqvist and Melin, 2010) and the perception that children have of this support (Garcia et al, 2018).…”

Family firms and internationalization in the Asia-Pacific: the need for multi-level perspectives

“…Generational issues are another family factor that may play an important role in the nature and extent of internationalization. Parental support and control behaviors influence the way in which next generation family members are integrated into their family business and their level of engagement (Garcia, Sharma, DeMassis, Wright, & Scholes, 2018). The process of integrating the next generation into the family business may influence the extent to which they are autonomous or dependent on parents, and hence the extent to which they contribute to the family firm and are willing and able to take strategic risks, including internationalization.…”