Keep Family Business Innovating: Revisit the Relationship Between Succession and Innovation From Ownership Succession

This study examines how family owner-manager successors' ownership influences R&D investment in family businesses. Drawing on the socioemotional wealth (SEW) perspective, we theorize that successors with higher family ownership prioritize extended SEW, leading to stronger R&D investment, while those with lower family ownership prioritize restricted SEW, resulting in weaker R&D investment. Additionally, we explore how family dynamics—specifically, the number of family directors and asymmetric salary favoring family members—moderate this relationship. Our findings enhance the understanding of successor heterogeneity and its impact on innovation, offering insights for succession planning that support the long-term sustainability of family businesses.