Abstract:

The present study intends to investigate the influence of financial management capabilities (audit, fraud management, risk management working capital management) on the succession success of small family businesses. While this study induced the moderating mechanism of fintech.

A conceptual model with financial management capabilities (formative constructs), and succession success (reflective construct) was based on eight hypotheses. Primary data (n=329) were collected from successors designated as chairmen or managing directors in the small family business. The study used Partial Least Square Structural Equation Modelling (PLS-SEM) through Smart-PLS software version 3.3.2. First, the reliability and validity of the constructs were tested. In the next step bootstrapping to test the hypothesis was implemented.

Results revealed that audit, fraud management, risk management working capital management have a positive significant relationship with succession success. While fintech moderates the relationship between audit, risk management, and succession success.

The research contributed to the literature. First, the study filled a research gap by investigating the relationship between the financial management capabilities of the successor and succession success. This study filled the second gap by using the moderating mechanism of fintech between financial management capabilities and succession success. This study revealed that small family businesses that adopt financial technology in their business operations can improve their financial management capabilities and thus improve the likelihood of succession success

Please choose your submission type: Full Paper

Primary Track: Financial Management

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Dr. Ibrahim Albkhetan