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Entrepreneurship Theory and Practice 2026

Transgenerational Intentions and the Emergence of Family Firms: Evidence from China’s One-Child Policy Reform

Zhihao Ren1; Cristina Cruz2; Na Zou3

1 KIMEP University, Almaty, Kazakhstan · 2 IE University Madrid Spain · 3 University of Bath, UK

Abstract

Are family firms born or made? We argue that firms become family-oriented as transgenerational intentions gain salience and reshape owners’ mindsets. Leveraging China’s one-child policy reform as an exogenous shock to within-family succession feasibility, we conduct a difference-in-differences analysis of 2,837 listed firms. We find that, relative to nonfamily firms, firms for which family succession is feasible increase R&D intensity following the reform, with the effect driven primarily by lone-founder firms. Our findings identify conditions under which founder-led firms transition toward family-oriented behavior, providing new insight into the “ made ” side of the born-or-made debate in family business research.

DOI
10.1177/10422587261472142
Language
en
Sources
openalex crossref

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