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Title: Cultural alignment and intergenerational succession in family firms: a game-theoretical experiment
Authors: Jayantilal, Shital
Jorge, Sílvia Ferreira
Lourenço, Diogo
Botelho, Anabela
Bañegil, Tomás M.
Keywords: Family firm
Successor selection
Game theory
Issue Date: 13-Apr-2022
Publisher: Emerald
Citation: Jayantilal, S., Jorge, S. F., Lourenço, D., Botelho, A., & Bañegil, T. M. (2022). Cultural alignment and intergenerational succession in family firms: a game-theoretical experiment. Journal of Family Business Management [publicado online em 13-04-2022]. Repositório Institucional UPT,
Abstract: Purpose The study aims to investigate the effect of cultural alignment and value congruency between children and founder on intergenerational succession and on the observation of family optimal outcomes. Design/methodology/approach A game-theoretical approach is used to develop a sequential game modeling the strategic interactions behind successor selection. The authors test its main predictions by conducting an experiment with 75 subjects. Findings A theoretical prediction that misalignment between children and founder leads to outcomes without intergenerational succession, or to outcomes with intergenerational succession that are not family optimal. These predictions are buttressed by our experiment, which also found evidence that the family optimal outcome is focal when there are multiple equilibria. Research limitations/implications No light is thrown on the sources of cultural (mis)alignment, but only on some of its consequences. Further studies of a different nature are needed to better understand the former. Practical implications Cultural diffusion and value congruency within the family should be timely fostered to promote harmony during the succession process and raise the chances of successful succession. Originality/value The cultural alignment and value congruency between incumbent and successors is treated as shaping the incentives that both types of agents face in the successor-selection process. Further, experimental techniques have not been used to test the results obtained in games exploring issues in family firm succession. This paper aims to begin filling this gap.
Description: O artigo foi publicado online em 13-04-2022 ("ahead-of-print" à data de 19-04-2022).
ISSN: 2043-6238
Appears in Collections:REMIT – Artigos em Revistas Internacionais / Papers in International Journals

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