scholarly journals Family Involvement in Management and Product Innovation: The Mediating Role of R&D Strategies

2019 ◽  
Vol 11 (7) ◽  
pp. 2162 ◽  
Author(s):  
Julio Diéguez-Soto ◽  
María J. Martínez-Romero
Keyword(s):  
Family Involvement ◽  
Product Innovation ◽  
Family Firms ◽  
Panel Data Analysis ◽  
Investment Strategy ◽  
Family Management ◽  
Mediating Role ◽  
Product Innovations ◽  
Family Involvement In Management

Following calls to capture family firms’ innovative behavior and to specifically clarify how family firms manage product innovations to achieve sustainable economic development, this study empirically investigates the mediating role of Research & Development (R&D) strategies (i.e., intramural R&D investments, extramural R&D investments, and the combination of both intramural and extramural R&D investments) in the relationship between family involvement in the management and likelihood of obtaining product innovations. Carrying out a panel data analysis that is based on 7264 observations of Spanish manufacturing firms throughout the 2000–2015 period, our results suggest a negative effect of the level of family management on the likelihood of introducing product innovations. Moreover, we found that intramural R&D investments and the investment strategy consisting of both intramural and extramural R&D mediated the family involvement in management-likelihood of obtaining product innovations relationship. Our findings contribute important insights to the comprehension of which determinants instigate product innovation in family managed firms.

scholarly journals Entrepreneurial orientation and product innovation. The moderating role of family involvement in management.

2019 ◽  
Vol 9 (2) ◽  
pp. 128-145 ◽  
Author(s):  
Taras Fredyna ◽  
Daniel Ruiz Palomo ◽  
Julio Dieguez Soto
Keyword(s):  
Family Involvement ◽  
Entrepreneurial Orientation ◽  
Product Innovation ◽  
Family Firms ◽  
Radical Innovation ◽  
Moderating Effect ◽  
Incremental Innovation ◽  
Family Involvement In Management ◽  
The Relationship

In this current research it has been examined, firstly, the Entrepreneurial orientation in relation with Product innovation, Incremental innovation and Radical innovation, and, secondly, the moderating effect of Family involvement in the management of companies in the relationship between Entrepreneurial orientation and Product innovation, Incremental innovation and Radical innovation. Using a sample of 634 Spanish family firms, the results found conclude that the Entrepreneurial orientation has a positive effect on Product innovation, Incremental innovation and Radical innovation, and moreover, they reveal that the Family involvement in the management of companies has a moderating effect on these relations, witnessing that family firms with higher scale of Family involvement in the management of the companies reduces the effect of Entrepreneurial orientation on Product innovation, Incremental innovation and finally, Radical innovation.

scholarly journals Refining the influence of family involvement in management on firm performance: The mediating role of technological innovation efficiency

2020 ◽  
pp. 234094442095733
Author(s):  
Rubén Martínez-Alonso ◽  
María J. Martínez-Romero ◽  
Alfonso A. Rojo-Ramírez
Keyword(s):  
Firm Performance ◽  
Technological Innovation ◽  
Family Involvement ◽  
Family Firms ◽  
Performance Outcomes ◽  
Jel Classification ◽  
Theory And Practice ◽  
Mediating Role ◽  
Research Fields ◽  
Family Involvement In Management

Determining what factors influence firm performance constitutes an essential issue in both the management and the family firm research fields. This article, building on the resource-based view perspective, develops a mediation model that involves a unique intervening mechanism, namely, technological innovation efficiency (TI efficiency), with the potential to explain the inconsistencies found in prior work on the ways through which family involvement in management affects performance outcomes. Regression analyses utilizing a longitudinal sample of 1,118 Spanish private firms largely support the hypothesized mediating relationship, revealing that TI efficiency leads to richer firm performance in family firms with active family involvement in management. Overall, our findings help elucidate the black box of performance outcomes within family firms and make several contributions to theory and practice. JEL CLASSIFICATION L25; M12; O32

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.

scholarly journals Family Involvement in the Firm and Exports in the Family SME: Is the Manager’s International Orientation Influential?

2015 ◽  
Vol 7 (3) ◽  
pp. 69-99 ◽  
Author(s):  
Sami Basly
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Positive Influence ◽  
International Orientation ◽  
The Family ◽  
Sample Data ◽  
Family Smes ◽  
Family Involvement In Management ◽  
The Relationship

AbstractDoes the family involvement affect exports in the family firm? The literature seems to support this view even if the direction and magnitude of this impact remains controversial. Drawing on the perspectives of agency [Chrisman et al. 2004; Schulze et al. 2001] and stewardship as applied to family firms [Davis, Schoorman and Donaldson 1997] and also on socio-emotional wealth perspective [Gómez-Mejía et al. 2007], this study seeks to contribute to this debate by studying the influence of family involvement on the SME exports intensity. To reconcile the divergent views, our research attempts to assess the role of the manager’s international orientation as a variable moderating the relationship between family involvement and exports in SMEs. Based on a hypothetical-deductive approach, the study uses a sample data of 125 family SMEs obtained through a questionnaire. The results show that even if the positive influence of the manager’s international orientation is corroborated, its moderating role seems to be limited to only one facet of the construct of family involvement i.e. involvement in management. Moreover, owning-family involvement in management seems to negatively influence exports while some results argue for a positive effect of the family involvement in ownership on exports.

The role of cooperation agreements in the internationalization of Spanish winery and olive oil family firms

2019 ◽  
Vol 31 (4) ◽  
pp. 555-577 ◽  
Author(s):  
Valeriano Sanchez-Famoso ◽  
Myriam Cano-Rubio ◽  
Guadalupe Fuentes-Lombardo
Keyword(s):  
Olive Oil ◽  
Family Involvement ◽  
Family Firms ◽  
International Strategy ◽  
Content Type ◽  
Oil Companies ◽  
Mediating Role ◽  
High Level ◽  
The Relationship

Purpose This study aims to identify the mediating role of cooperation agreements in the relationship between family involvement in international firms and their level of international commitment. Design/methodology/approach The study focuses on Spanish international wine and olive oil companies that have varying levels of family involvement. The final sample consists of 263 companies. SmartPLS was used to perform the analysis. Findings A higher level of family involvement in business implies greater difficulties with cooperation agreements. Additionally, family involvement is negatively associated with the firm’s level of international commitment, and the perceived difficulties of cooperation agreements mediate this relationship. Practical implications This study is of interest to business managers with different levels of family involvement. The study clarifies their perceptions of cooperation agreements and international business commitment. Managers of firms with a high level of family involvement should emphasize the multiple benefits of cooperation agreements for international strategy performance rather than the drawbacks of cooperation. Additionally, through cooperation, companies can learn about destination markets, which may help them to focus their resources effectively in those markets. Originality/value This study contributes to the literature on the internationalization strategies of family businesses. This study is the first to address the mediating role of cooperation agreements in the relationship between family involvement and international commitment.

Family managers' propensity towards mergers and acquisitions: the role of performance feedback

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosalia Santulli ◽  
Carmen Gallucci ◽  
Mariateresa Torchia ◽  
Andrea Calabrò
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Performance Feedback ◽  
Family Firms ◽  
Theory Of The Firm ◽  
Point Of View ◽  
Content Type ◽  
Mediating Role ◽  
Upper Echelons Theory

PurposeDrawing on upper echelons theory (UET) and arguments from behavioral theory of the firm, this paper aims to contribute to the debate on family involvement-performance relationship, by considering the mediating role of the propensity towards merger and acquisition (M&A) and the moderating role of performance feedback.Design/methodology/approachThe hypotheses are tested by applying a moderated mediation analysis on a sample of 111 German family firms. First, a mediation model is run to verify the mediation role of the propensity towards M&A; then, to evaluate the magnitude of the mediation at different values of the moderator (performance feedback), conditional indirect effects are tested using normal-theory standard errors and bootstrapping procedure.FindingsThe main findings suggest that a higher percentage of family members sitting in TMT is related to better performance and that this effect is mediated by the propensity towards M&A. Furthermore, findings also show that a higher percentage of family managers is positively related to the propensity towards M&A and, in turn, exerts a positive effect of firm performance, especially when performance feedback is negative.Practical implicationsThe paper suggests to family firms' managers that when performance feedback is negative, a riskier behavior, such as M&A, could represent a way to improve firm performance.Originality/valueThe paper provides a full application of UET to the context of family firms, offers the point of view of TMT, instead of that of ownership, to study the propensity towards M&A in family firms and goes beyond the rational view to explain family managers' risk-taking behaviors.

The Incentives to, and Constraints upon, Product Innovation

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Survey Data ◽  
Product Innovation ◽  
Product Space ◽  
Driving Forces ◽  
Product Line ◽  
Decision Uncertainty ◽  
Market Structures ◽  
Product Innovations

This chapter explores the factors that affect the firm’s decision to undertake product innovation. The discussion encompasses the driving forces that encourage product innovation, for example innovation by others or the ageing of an existing product line; however, the basic rationale is the search for profits. The chapter also addresses decisions about: the extent of innovation in general; horizontal and vertical product innovations separately; and the location of innovations in product space. The role of market structures in the product innovation decision, uncertainty in the innovating environment, and issues relating to emulation and copying are also addressed. Constraints to product innovation that survey data indicate are most important—innovation costs, risk and finance, and the availability of qualified labour—are also addressed.

Family involvement in management in private businesses and the effect on professional managers’ psychological ownership

2018 ◽  
Vol 9 (2) ◽  
pp. 225-243
Author(s):  
Hang Zhu ◽  
Pengxiang Zhang ◽  
Xiaoyan Han ◽  
Ting Huang
Keyword(s):  
Family Involvement ◽  
Negative Relationship ◽  
Personal Relationships ◽  
Psychological Ownership ◽  
Family Management ◽  
Content Type ◽  
Relationship Closeness ◽  
Professional Managers ◽  
Family Involvement In Management ◽  
Management Involvement

Purpose The purpose of this paper is to unveil how family involvement in management teams of private Chinese companies affects professional managers’ psychological ownership and sense of “us”, in the hopes of understanding why their devotion cannot coexist with the higher level of commitment of family managers. Design/methodology/approach This paper includes two main studies. The first uses regression to analyze survey data provided by 165 professional managers working in Chinese private companies. The second is a scenario experiment in which 106 MBA candidates participate. Findings The study finds that there is a negative relationship between family management involvement and professional managers’ perceived relationship closeness to owners and psychological ownership of firms. It also finds that relationship closeness fully mediates the negative influence of family management involvement on managers’ psychological ownership. Originality/value This paper contributes to both the theoretical literature and management practice. From a theoretical perspective, it connects studies in indigenous sociological psychology with new literature on psychological ownership. The paper finds that personal relationships nurture the shared psychological ownership of managers by generating a sense of “us”, providing a new theoretical explanation for its formation process. Furthermore, this study offers an explanation for the negative signal effect of family involvement in management. From a practical perspective, this study finds that family involvement in management acts as a critical boundary condition for using personal relationships to stimulate professional managers.

Competitive Strategy Based on Flexibility

2019 ◽  
pp. 129-148
Author(s):  
Marta Pérez-Pérez ◽  
María Concepción López-Fernández ◽  
Ana María Serrano-Bedia
Keyword(s):  
Family Involvement ◽  
Competitive Strategy ◽  
Family Firms ◽  
Implementation Process ◽  
Manufacturing Flexibility

This chapter is intended to analyze the extent to which businesses in Spain have adopted several flexibility-manufacturing practices. Specifically, this study explores firstly, sample-based differences in the results of comparative family firms versus nonfamily firms concerning practices for implementing manufacturing flexibility. Secondly, heterogeneity in this implementation process within different groups of family firms was explored. The gathered evidence suggests that the main differences with respect to practices for implementing manufacturing flexibility appear when specific characteristics surrounding family firms and related to the role of the CEO and family involvement in the management of the firm are considered.

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