Lighting the torch: shaping next-generation human capital through imprinting in or beyond the family firm
Daniel Michael Peat, Charles H. Matthews, Amit J. ChauradiaPurpose
This paper explores the role of imprinting in shaping next-generation human capital within family firms, particularly focusing on how early-career experiences inside or outside the firm affect succession planning and organizational performance. This research advances our understanding by integrating imprinting theory with human capital accumulation theory, offering new insights into the subtleties of leadership succession in family firms. It also provides practical implications for balancing internal and external career experiences to optimize succession planning and long-term organizational adaptability.
Design/methodology/approach
Using a phased survey of 121 family firm employees, we employ regression and structural equation modeling to assess the relationships between early-career imprinting, human capital (firm-specific vs. general), organizational learning, task performance and turnover intention. We supplement this quantitative analysis with illustrative interviews from family firm members to provide richer insights into how imprinting shapes human capital accumulation and influences succession planning outcomes.
Findings
Imprinting within family firms significantly enhances firm-specific human capital, which leads to improved task performance and a deeper alignment with the firm’s operational processes. However, this comes at the cost of limiting general human capital, which constrains adaptability and broader market knowledge.
Originality/value
This study highlights the balance between internal and external career experiences in shaping leadership transitions in family firms and offers practical insights for succession planning strategies. While previous research has emphasized the role of human capital in family business succession, this study deepens the understanding by using imprinting during early-career experiences, whether inside or outside the family firm. It underscores the importance of integrating firm-specific knowledge with external expertise to foster both continuity and innovation in family firms.