The Moderating Effect of Family Management on R&D Productivity in Privately Held Firms

2022 ◽  
pp. 215-244
Author(s):  
María J. Martínez-Romero ◽  
Rubén Martínez-Alonso ◽  
M. Pilar Casado-Belmonte ◽  
Alfonso A. Rojo-Ramírez
Keyword(s):  
Family Firms ◽  
Innovation Management ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Family Management ◽  
Strengthening Effect ◽  
Longitudinal Sample ◽  
General Terms ◽  
The Relationship ◽  
Privately Held

The aim of this chapter is to analyze the moderating effect of family management on the relationship between R&D inputs and R&D outcomes, that is, R&D productivity. Using a longitudinal sample of 337 Spanish privately held manufacturing firms, the results show that in general terms, although family managed firms invest less in R&D than their non-family managed counterparts, they reinforce the conversion of R&D inputs into R&D outcomes. Moreover, the findings reveal that the strengthening effect of family management on R&D productivity is contingent upon the level of R&D expenditures. Thus, this chapter contributes to shedding some light into the debate regarding innovation management in privately held family firms.

The Moderating Effect of Family Management on R&D Productivity in Privately Held Firms

2019 ◽  
pp. 309-338 ◽  
Author(s):  
María J. Martínez-Romero ◽  
Rubén Martínez-Alonso ◽  
M. Pilar Casado-Belmonte ◽  
Alfonso A. Rojo-Ramírez
Keyword(s):  
Family Firms ◽  
Innovation Management ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Family Management ◽  
Strengthening Effect ◽  
Longitudinal Sample ◽  
General Terms ◽  
The Relationship ◽  
Privately Held

The aim of this chapter is to analyze the moderating effect of family management on the relationship between R&D inputs and R&D outcomes, that is, R&D productivity. Using a longitudinal sample of 337 Spanish privately held manufacturing firms, the results show that in general terms, although family managed firms invest less in R&D than their non-family managed counterparts, they reinforce the conversion of R&D inputs into R&D outcomes. Moreover, the findings reveal that the strengthening effect of family management on R&D productivity is contingent upon the level of R&D expenditures. Thus, this chapter contributes to shedding some light into the debate regarding innovation management in privately held family firms.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

Entrepreneurial Leadership as a Driver of Innovation Success in Family SMEs in Colombia

2022 ◽  
pp. 842-860
Author(s):  
Unai Arzubiaga ◽  
Pablo Álamo
Keyword(s):  
Latin America ◽  
Distinctive Feature ◽  
Family Firms ◽  
Innovation Management ◽  
Essential Element ◽  
Innovation Performance ◽  
Exploratory Research ◽  
Entrepreneurial Leadership ◽  
Family Smes ◽  
The Relationship

This chapter aims to analyze if entrepreneurial leadership, regarded as a distinctive feature of entrepreneurial processes, represents an essential element for obtaining satisfactory innovation performance in an emerging context such as Colombia in Latin America. The relationship between entrepreneurial leadership and innovation management works differently in family firms (FF) compared with their non-family counterparts. Indeed, there is no consensus in the literature on the effects of entrepreneurial leadership on innovation success in family small and medium-sized enterprises (SMEs). Exploratory research has been conducted considering a survey held on family SMEs in Colombia. Results highlight the importance of supporting entrepreneurial leadership in order to achieve the innovation goals in these types of organizations and show how these factors change between family SMEs with family CEOs and non-family CEOs. In this sense, although the focus in this chapter is on FF, the conclusions could be to some extent generalized to SMEs.

scholarly journals Combining Internal and External R&D: The Effects on Innovation Performance in Family and Nonfamily Firms

2019 ◽  
Vol 44 (5) ◽  
pp. 996-1031 ◽  
Author(s):  
Fernando Muñoz-Bullón ◽  
Maria J. Sanchez-Bueno ◽  
Alfredo De Massis
Keyword(s):  
Family Business ◽  
Longitudinal Analysis ◽  
Economic Performance ◽  
Family Firms ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Business Innovation ◽  
Innovation Research ◽  
The Relationship ◽  
Positive Effect

We examine the effect of combining internal and external R&D loci on innovation performance in family firms (FF) and nonfamily firms (non-FFs). Our longitudinal analysis of 27,438 firm-year observations of Spanish manufacturing firms from 1990 to 2016 shows that FFs can better exploit the benefits of simultaneously engaging in internal and external R&D activities, leading to a positive effect on innovation performance. Moreover, the relationship between combined internal and external R&D and innovation performance in FFs is contingent upon firm economic performance. By pointing to the importance of taking into account the combination of internal and external R&D loci to foster innovation in FFs, we challenge current family business innovation research.

Family involvement and the impact of information and communication technology on performance

2017 ◽  
Vol 30 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Ana Felicitas Gargallo Castel ◽  
Carmen Galve Górriz
Keyword(s):  
Information And Communication Technology ◽  
Family Involvement ◽  
Communication Technology ◽  
Family Business ◽  
Family Firms ◽  
Moderating Effect ◽  
Content Type ◽  
Information And Communication ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the moderated effect of family involvement on the relationship between information and communication technology (ICT) and firm performance. Design/methodology/approach According to agency and transaction cost theories, distinctive family business characteristics provide a unique context that favours a more efficient use of ICT. The authors perform a multivariate analysis that includes the moderating effect of family involvement and considers the possible endogeneity of the ICT variable. Findings The results, using a large panel of Spanish manufacturing firms, confirm the importance of family involvement for explaining differences in terms of the impact of this technology in family and non-family businesses. The relationship between ICT and performance is stronger for family firms than for non-family firms. Research implications The paper provides new evidence for the academic literature on ICT impact and family firms. It corroborates the importance of using an organizational perspective to explain differences in the effect of ICT on performance. Practical implications Family firms should understand the opportunities that family involvement offers regarding ICT impact on performance, and exploit this moderating effect to achieve competitive advantages. Originality/value No previous studies deal with the impact of family involvement on ICT-performance analysis. This study fills this gap and increases the understanding of how family business involvement moderates the ICT-performance relationship.

scholarly journals Exploring the moderating effect of family CEO on the association between family ownership and firm value: An empirical analysis of top Indian family firms

2015 ◽  
Vol 12 (2) ◽  
pp. 349-361
Author(s):  
Lakshmi Kalyanaraman
Keyword(s):  
Family Member ◽  
Empirical Analysis ◽  
Interaction Effect ◽  
Firm Value ◽  
Family Firms ◽  
Stock Exchange ◽  
Moderating Effect ◽  
Market Valuation ◽  
Family Ownership ◽  
The Relationship

We study 288 family firms included in the NSE CNX 500 index of the National Stock Exchange of India. We find an entrenchment-alignment-entrenchment relationship between family ownership and firm value. We show that family CEO has a negative moderating effect on the relationship between family ownership and firm value. When the interaction effect of Family CEO on family ownership is controlled, only family shareholding in the alignment range is found to be statistically significant. The study shows that family firms with family CEO suffer from a decrease in market valuation. This finding is extremely valuable given the fact that India is dominated by family firms and majority of family firms appoint a family member as CEO

scholarly journals Chief executive officer retirement and auditor’s risk assessment

2020 ◽  
Vol 18 (2) ◽  
pp. 343-361
Author(s):  
Salau Olarinoye Abdulmalik ◽  
Noor Afza Amran ◽  
Ayoib Che-Ahmad
Keyword(s):  
Risk Assessment ◽  
Chief Executive Officer ◽  
Perceived Risk ◽  
Family Firms ◽  
Chief Executive ◽  
Family Businesses ◽  
Moderating Effect ◽  
Content Type ◽  
Client Risk ◽  
The Relationship

Purpose This study aims to examine the unique nature of family firms by investigating the moderating effect of chief executive officer (CEO) identity on CEO career horizon and the auditor’s client risk assessment. Consistent with literature on family businesses, the level of CEO attachment to socio-emotional wealth (SEW) varies among family businesses. Design/methodology/approach This study used a longitudinal sample of 2,063 non-financial family firm-year observations from 2005 to 2016 listed on the Bursa Malaysia. The study used the general method of moments (GMM), which controls for endogeneity concerns. Findings The results reveal that, without the moderating effect of CEO identity, the relationship between CEO career horizon and auditor’s risk assessment is positive, which suggests that the auditor’s risk perception of retiring CEOs is very high. However, the interaction of CEO identity reverses the relationship as evidenced by the negative and significant coefficient on the interacted terms. The finding suggests that the auditor’s perceived risk associated with CEO career horizon is lower in family firms with CEOs affiliated to family members or in which the CEO has an equity stake. Overall, the findings provide compelling evidence that the extent of the CEO’s attachment to the firm’s SEW affects the auditor’s client risk assessment. Practical implications The findings of the study serve as an enlightenment to policymakers such as Bursa Malaysia and Security Commission that within the family-controlled firms, differences still exist; therefore, there might be a need for future regulatory initiative to cater for the specific need of family-controlled firms. Originality/value The study contributes to prior literature by departing from the agency theory adopted in previous studies on auditor choice in family firms under the assumption that family firms are homogenous.

INTER-ORGANISATIONAL COLLABORATION AND BUSINESS MODEL INNOVATION: THE JOINT MODERATING EFFECTS OF ABSORPTIVE CAPACITY AND COLLABORATION DEPTH

2020 ◽  
pp. 2150050
Author(s):  
JUN YU ◽  
XINRUI LI ◽  
ZHENGCONG MA
Keyword(s):  
Business Model ◽  
Absorptive Capacity ◽  
Innovation Management ◽  
Theory Of The Firm ◽  
Manufacturing Firms ◽  
Business Model Innovation ◽  
Moderating Effect ◽  
Moderating Effects ◽  
Senior Managers ◽  
Knowledge Based

Informed by the knowledge-based theory of the firm, the study explores how internal absorptive capacity and external inter-organisational collaboration jointly promote business model innovation (BMI). Drawing on the relevant existing literature, a model linking collaboration breadth, collaboration depth, absorptive capacity, and BMI was constructed and tested. Hierarchical multiple regression analysis of the results of a questionnaire-based survey of 317 senior managers in manufacturing firms revealed that both collaboration breadth and collaboration depth are positively related to BMI. Collaboration depth has no significant moderating effect on the collaboration breadth–BMI relationship, and absorptive capacity has no significant moderating effect on relations between BMI and collaboration breadth or collaboration depth. However, the joint moderating effects of absorptive capacity and collaboration depth on the collaboration breadth–BMI relationship were positively significant. These results have a number of implications for research on BMI and innovation management and for the development of knowledge-based theory.

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