Bridging generations: The impact of family collective psychological ownership on succession in family businesses

This study explores how Family Collective Psychological Ownership (FCPO) functions as an emergent state that facilitates succession in family businesses. Drawing Social Exchange Theory (SET) as a foundational lens, we argue that FCPO extends SET by incorporating collective and affective dimensions that are often overlooked in traditional exchange models. Through a qualitative multi-case study of nine family firms across two generations, we identify how interdependence and identification among family members contribute to the functional and affective components of FCPO. These components interact to form a dynamic, co-constructed psychological state that supports intergenerational transitions. Our findings demonstrate that FCPO is not a static attribute, but an evolving construct shaped by shared narratives, emotional bonds, and collaborative practices. By conceptualizing FCPO as an emergent state, this study advances theoretical understanding of succession as a relational and affective process, offering new insights into how family firms sustain continuity across generations.