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Save it for a rainy day: the influence of succession planning on firm digitalization

Aug 2026 · Humanities and Social Sciences Communications · Vol 13 · 0 citations · 124 references

Abstract

Grounded in paternalism theory and an inter-generational care perspective, this study explores the relationship between systematic succession planning—as an embodiment of paternalistic leadership—and firm digitalization, conceptualizing digitalization as a preventive, proactive strategic decision. Utilizing data from the 2020 Chinese Private Enterprises Survey with a sample of 22,529 firms, the empirical results indicate that comprehensive succession planning significantly and positively affects firm digitalization; specifically, a one-level increase in planning comprehensiveness corresponds to a 0.149-unit increase in digitalization levels. Furthermore, this study identifies critical boundary conditions, finding that while overseas investment strengthens this positive association, family ownership serves to attenuate it. By elucidating the strategic role of succession planning in enabling proactive organizational change, this research contributes to the digitalization literature and offers practical insights for firms navigating dynamic competitive environments through forward-thinking leadership initiatives.

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