Overcoming the Dark Side of Closed Networks in Cultural Tourism Clusters: The Importance of Diverse Networks

2017 ◽  
Vol 59 (3) ◽  
pp. 239-256 ◽  
Author(s):  
Ángela Martínez-Pérez ◽  
Marie-Michele Beauchesne
Keyword(s):  
Social Capital ◽  
Developed Countries ◽  
Cultural Tourism ◽  
Dark Side ◽  
Negative Effects ◽  
Firm Level ◽  
Firm Innovation ◽  
Closed Networks ◽  
The World ◽  
The Relationship

Despite the recognized importance of tourism as an engine of economic growth in developed countries, research on the antecedents of innovation in this sector has been sparse, especially in the context of tourism clusters. Scholars have suggested that social capital is a key determinant of firm innovation in the context of tourism clusters, but empirical evidence has been lacking. The aim of this article is to empirically study the interplay between social capital and innovation in the context of tourism clusters at firm level. More specifically, we analyzed the effects of closed networks and diverse networks on firm innovation using a sample of 215 hospitality and tourism firms located in the World Heritage Cities of Spain. Results showed an inverted-U-shaped relationship between closed networks and firm innovation. Consistent with existing literature, these findings suggest that whereas a certain degree of strength and density helps to promote innovation, a critical point may exist beyond which innovation stabilizes or deteriorates when the information of the network becomes too redundant. In addition, we found that diverse networks positively moderated the relationship between closed networks and firm innovation. In other words, structural holes appear to mitigate the negative effects arising from excess strength and density and encourage the development of innovations beyond what a firm relying solely on closed networks could achieve. In practice, these results suggest firms in tourism clusters should not exclusively focus on typical closed networks but also create connections with diverse agents to maximize their potential for innovation.

scholarly journals Research on the influencing factors of family firm innovation

2021 ◽  
Vol 235 ◽  
pp. 02017
Author(s):  
Yingrui Liu
Keyword(s):  
Influencing Factors ◽  
Family Involvement ◽  
Family Business ◽  
External Environment ◽  
Family Firm ◽  
Economic Activities ◽  
Firm Innovation ◽  
Strategic Focus ◽  
The Stability ◽  
Innovation Behavior

Family business plays an important role in the world’s economic activities, and has made great contributions to the stability and development of the economy of various countries. Innovation is an important but inexplicable part of the strategic focus of family business. Based on the existing literature, this paper discusses the factors that influence the innovation behavior of enterprises from the perspective of family involvement and external environment.

External knowledge sourcing and innovation in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Rojers P. Joseph
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
External Knowledge ◽  
Mediating Role ◽  
Realized Absorptive Capacity

Purpose This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities. Design/methodology/approach The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships. Findings The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation. Practical implications Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge. Originality/value This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

Social Networks: Effects of Social Capital on Firm Innovation

2010 ◽  
Vol 48 (2) ◽  
pp. 258-279 ◽  
Author(s):  
Francesc Xavier Molina-Morales ◽  
María Teresa Martínez-Fernández
Keyword(s):  
Social Capital ◽  
Social Networks ◽  
Firm Innovation

Exploring the family effect on firm performance

2015 ◽  
Vol 21 (6) ◽  
pp. 898-917 ◽  
Author(s):  
Yosra Mani ◽  
Lassaad Lakhal
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Family Firms ◽  
Family Firm ◽  
Social Capital Theory ◽  
Three Dimensions ◽  
Capital Theory ◽  
Cognitive Dimension ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to investigate how internal social capital – as a part of the familiness resources– affects family firm performance. The social capital theory states that internal social capital within family businesses is composed of three dimensions: the structural dimension, the relational dimension, and the cognitive dimension. The aim of the paper is to study the relationship between each dimension of internal social capital and family firm performance. Design/methodology/approach – The paper employs an empirical investigation which is based on a sample of 114 Tunisian family firms. Findings – Results demonstrate that the structural and relational dimensions are positively associated with financial and non-financial family firm’s performance. However, the cognitive dimension has a significant positive effect on financial performance but not on non-financial family firm performance. Originality/value – The proposed model aims to test the direct effect of internal social capital dimensions on financial and non-financial family firm’s performance. Besides, there is a lack of empirical evidence aiming at understanding the impact of structural, cognitive and relational social capital on the performance of family firms.

Does Knowing “Who Knows What” Matter for Family Firm Innovation? Insights From Transactive Memory System Theory

2020 ◽  
pp. 089448652091287
Author(s):  
Kristen Madison ◽  
Joshua J. Daspit ◽  
Emily Garrigues Marett
Keyword(s):  
Memory Systems ◽  
Transactive Memory ◽  
Family Firm ◽  
Shared Knowledge ◽  
Dispersion Modeling ◽  
Shared Understanding ◽  
Firm Innovation ◽  
Transactive Memory System ◽  
Communication Effects ◽  
Triadic Data

We extend transactive memory systems theory from psychology to examine the cognitive interdependence of family and nonfamily employees and its effects on family firm innovation. Using triadic data and dispersion modeling, we find that innovation is enhanced when family and nonfamily employees communicate and when they have a shared understanding of “who knows what”; however, we find unexpectedly that the communication effects differ for family and nonfamily employees, hindering the development of shared knowledge perceptions needed for enhanced innovation. We demonstrate the value in applying psychology-based research to family firm investigations and in investigating microfoundations of family firm innovation.

Family Social Capital in the Family Firm: A Taxonomic Classification, Relationships With Outcomes, and Directions for Advancement

2019 ◽  
Vol 32 (2) ◽  
pp. 131-153 ◽  
Author(s):  
Paul Sanchez-Ruiz ◽  
Joshua J. Daspit ◽  
Daniel T. Holt ◽  
Matthew W. Rutherford
Keyword(s):  
Social Capital ◽  
Family Firms ◽  
Family Firm ◽  
Taxonomic Classification ◽  
Negative Effects ◽  
Unique Form ◽  
Family Social Capital ◽  
Two Samples ◽  
The Family ◽  
Heterogeneous Nature

The unique form of social capital among family involved in the business, or family social capital (FSC), has both positive and negative effects on the family firm. To better understand how FSC exists across family firms and advance related theory, we develop a taxonomy of FSC. Using configuration analyses on two samples of family firms, we find that three clusters of family firms exist, which include firms with Instrumental, Identifiable, and Indistinguishable FSC. The specific configurations of each cluster are noted, and effects on economic and noneconomic outcomes are identified to advance understanding of the heterogeneous nature of family firms.

scholarly journals Radical innovation in family firms: a systematic analysis and research agenda

2020 ◽  
Vol 26 (6) ◽  
pp. 1199-1234 ◽  
Author(s):  
Qilin Hu ◽  
Mathew Hughes
Keyword(s):  
Family Firms ◽  
Radical Innovation ◽  
Family Firm ◽  
Critical Discussion ◽  
Incremental Innovation ◽  
Future Research ◽  
Firm Innovation ◽  
Systematic Analysis ◽  
Content Type ◽  
Research Questions

PurposeInvestigation of family firm radical innovation is burgeoning but far less prevalent than studies of family firm innovation in general. Concurrently, studies repeatedly report that family firms exhibit mostly conservative and incremental innovation rather than more radical ones. This is unfortunate because without radical innovation, family firms risk a competency trap in which long-term competitiveness is lost to more innovative rivals. This situation has led to urgent calls among scholars to explicitly acknowledge the heterogeneity of family firm innovation and to understand the conditions for family firm radical innovation.Design/methodology/approachA systematic review of 51 papers categorized into four scholarly conversations build the foundation for a critical discussion of each line of inquiry.FindingsThe authors analyze 51 leading articles and identify four persistent theoretical positions: (1) RBV and capabilities, (2) agency and stewardship, (3) behavioral agency and socioemotional wealth, and (4) the ability and willingness paradox. The authors identify key research problems and research questions needing urgent scholarly and present a framework that captures their complementary and competing assumptions to enable rigorous future research.Originality/valueTo galvanize and spearhead future research efforts, this paper provides a critical analysis of our understanding of family firm radical innovation with a specific emphasis on the theoretical assumptions at the core of existing investigations and the eight most important research questions in need of answers.

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