The role of family dynamics on transition processes in family firms: How family dynamics influence intergenerational transition outcomes

In a qualitative study of 16 German family firms, we examine how family dynamics influence intergenerational transition outcomes. We uncover four family dynamics, namely cohesion of extended families, multiple involved family members, predecessor-successor-relationship, and parents and partner influence. 31 semi-structured interviews with predecessor and successor CEOs revealed that the family dynamics have different influences on four major transition mechanisms, namely control, knowledge transfer, harboring, and emotional alignment that lead to two outcomes, heritage maintenance and transformation.