Does Family Management Inhibit the Technological Innovation of Family Firms?

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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)

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