Understanding the influence of education and experience in transgenerational entrepreneurship in the agricultural context of the Canary Islands: a microfoundations view

Abstract

This study analyses the impact of successors' constructed knowledge from certain dimensions of education (i.e. higher education, sector-related education, and managerial education) and experience (i.e. experience in the sector, experience outside the sector, and managerial experience) on transgenerational entrepreneurship. Based on a literature review of family firm succession, the key elements in studying transgenerational entrepreneurship are the successors' entrepreneurial orientation, firm innovation, and firm performance. The quantitative approach of this study is based on a survey of successors of agricultural family firms in the Canary Islands, Spain. Using data from 103 successors, the research hypotheses were tested using the Smart PLS software. A successor's entrepreneurial orientation positively influences innovation in the family firm, which affects performance. To increase the successor's entrepreneurial orientation, their knowledge constructed from the three dimensions of education analysed is indicated as having a positive influence, specifically, knowledge developed in higher education, sector-related topics, and management. From an academic perspective, this study empirically supports the tenets of relevant conceptual works on family firms and emphasizes the value of successors' knowledge constructed from education when compared to their experience. This study has relevant theoretical and managerial implications for the survival of family businesses and succession planning.