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How Family Involvement in Management Affects the Innovative Behavior of Private Firms: The Moderating Role of Technological Collaboration with External Partners

How Family Involvement in Management Affects the Innovative Behavior of Private Firms: The Moderating Role of Technological Collaboration with External Partners
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Author(s): Rubén Martínez-Alonso (Universidad de Almería, Spain), María J. Martínez-Romero (Universidad de Almería, Spain), Julio Diéguez-Soto (Universidad de Málaga, Spain) and Alfonso A. Rojo-Ramírez (Universidad de Almería, Spain)
Copyright: 2020
Pages: 25
Source title: Handbook of Research on the Strategic Management of Family Businesses
Source Author(s)/Editor(s): Jesús Manuel Palma-Ruiz (Universidad Autónoma de Chihuahua, Mexico), Ismael Barros-Contreras (Universidad Austral de Chile, Chile) and Luca Gnan (University of Rome "Tor Vergata", Italy)
DOI: 10.4018/978-1-7998-2269-1.ch007

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Abstract

By taking insights from the Socioemotional Wealth theory, this chapter investigates the effect of family involvement in management on firms' innovative behavior, namely on their innovation effort. Furthermore, this research analyses whether firms are more willing to develop innovative efforts when they are engaged in technological collaborations with external partners, such as suppliers or customers. Authors used a panel dataset on 3,060 observations of Spanish manufacturing firms for the 2000–2012 period. The findings show a negative incidence of family managers on firms' innovative efforts. The empirical findings also reveal that technological collaborations with suppliers weaken the negative effect of family involvement in management on innovative effort.

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