Passing The Torch: The Influence of Financial Issues in Family Business Transition

This study examines how financial literacy and fintech usage mediate the relationship between financial socialization and perceived succession success while also considering the moderating role of risk aversion. The primary data was collected from 380 chairmen or managing directors of F-OSBs by using a purposive sampling technique. This study employed Partial Least Structure Equation Modelling (PLS-SEM) by using Smart-PLS 4.0. The results of this study found that financial literacy and fintech usage are the bridges that increase the role of financial socialization for the successful succession transition of F-OSBs. Moreover, this study revealed that descendants who are averse to high risks tend to improve their financial literacy, increasing the likelihood of succession success. However, risk-averse descendants of F-OSBs are not inclined to use financial technologies, which may result in succession failure. The study integrated financial knowledge and modern technology to facilitate succession transition in F-OSBs. It provides valuable insight for F-OSBs to develop succession strategies based on the risk profile of their descendant entrepreneurs and ensure effective succession outcomes.