THE IMPACT OF CO-GOVERNANCE ON INNOVATION INVESTMENT IN FAMILY BUSINESS

This study examines the impact of father-son co-governance on innovation investment in Chinese family businesses and investigates the moderating role of sibling conflicts. Using 8,085 observations, the empirical analysis was conducted with Stata 18. The results indicate that father-son co-governance significantly suppresses innovation investment during the co-governance phase in Chinese family businesses. Furthermore, sibling conflicts moderate the relationship between father-son co-governance and innovation investment. This study proposes a stage-based theoretical framework for intergenerational succession by looking at the creative behaviors in the father-son co-governance phase. This adds the unique Chinese paternalism theory to the study of how businesses act in the economic world. This research provides significant insights for family businesses to optimize succession planning and implement innovation management, while also offering empirical evidence for improving governance systems and balancing family relationships.