Does Family Management Inhibit the Technological Innovation of Family Firms?

9595272759_0f40945def_z[We’re pleased to welcome Julio Diéguez Soto of Universidad de Málaga. Julio recently published an article in the September 2016 issue of Family Business Review with co-authors Montserrat Manzaneque and  Alfonso A. Rojo-Ramírez, entitled Technological Innovation Inputs, Outputs and Performance: the Moderating Role of Family Involvement in Management.”]

  • What inspired you to be interested in this topic?

The enormous impact of innovation on economic growth and job creation worldwide and their particular importance for family SMEs.

  • Were there findings that were surprising to you?

Family management reduces the efficiency in converting R&D into technological innovation outcome. However, Current Issue Coverfamily management more effectively leverages technological innovation, thereby increasing long-term performance.

  • How do you see this study influencing future research and/or practice?

Given the importance of R&D to firm performance, family managers should understand the potential pitfalls that attempting to protect their socio-emotional wealth can have on technological innovation outcomes. Simultaneously, family businesses should consider the competitive advantages associated to family managers, who are more efficient in exploiting their given technological innovation outputs, which in turn increases long term performance.

Although this study considers family-managed firms as a particular group, future research should take into account that there is heterogeneity among them and should evaluate the differences among family-managed firms with regard to long-term innovation strategies.

The abstract for the article:

The aim of this research is to study the moderating role of family management in the relationships between the intensity of research and development and the occurrence of continuous technological innovation and between the existence of technological innovation outcomes and long-term firm performance. The results show that family management reduces efficiency in the conversion of research and development expenses into technological innovation outcomes over time. Our findings also suggest that the influence of family management significantly contributes to improving the effect of the achievement of technological innovation on long-term performance.

You can read “Technological Innovation Inputs, Outputs and Performance: the Moderating Role of Family Involvement in Management” from Family Business Review free for the next two weeks by clicking here. There’s also still time for you to read Family Business Review‘s inaugural review issue, which closes at the end of August–click here to read it!

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*Technology image attributed to Cory M. Grenler (CC)
This entry was posted in Family Business, Innovation, Technology, Uncategorized and tagged , , , , , by Cynthia Nalevanko, Editor, SAGE Publishing. Bookmark the permalink.

About Cynthia Nalevanko, Editor, SAGE Publishing

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 1500 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, Washington DC, and Melburne, our publishing program includes more than 1000 journals and over 900 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

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