Main Article Content

Filippo Ferrari
University of Bologna
Biography
Vol. 9 No. 2 (2019): INNOVATION IN FAMILY FIRMS: BRIDGING THE THEORY-PRACTICE GAP, Innovation in Family Business. Research papers:, pages 115-127
DOI: https://doi.org/10.24310/ejfbejfb.v9i2.5388
Copyright

Abstract

Current literature suggests that family involvement has an impact on firm innovativeness, but it is not able to explain in which conditions. Adopting a curvilinear model, (Olson’s circumplex model of family) this research demonstrates that the family's cohesion and flexibility levels play a significant role in the relationship between family involvement and firm innovation propensity.

This paper also provides evidence for the theory that previous research limitations are due to the fact that they posit a linear relationship between family involvement and innovativeness. Instead, the Circumplex curvilinear model shows a better fit for explaining the family involvement impact on innovation propensity.

Downloads

Download data is not yet available.

Article Details

References

Astrachan, J. H., and P. Jaskiewicz (2008). Emotional Returns and Emotional Costs in Privately Held Family Businesses: Advancing Traditional Business Valuation. Family Business Review 21(2), 139–149.

Astrachan, J. H., Klein, S. B., & Smyrnios, K. X. (2002). The F-Pec scale of family influence: A proposal for solving the family business definition problem. Family Business Review, 15(1), 45–58.

Barney J.B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 171, 1, 99-120.

Beavers W.R., Hampson R.B., (1995). Misurare la competenza famigliare: il modello sistemico di Beavers, tr. it. in Ciclo vitale e dinamiche familiari, a cura di F. Walsh, Franco Angeli, Milano.

Becker, M. C. (2004). Organizational routines: A review of the literature. Industrial and Corporate Change, 13(4), 643-677.

Berrone, P., Cruz, C., & Gomez-Mejia, L. R. (2012). Socioemotional Wealth in Family Firms: Theoretical Dimensions, Assessment Approaches, and Agenda for Future Research. Family Business Review , 25(3), 258-279.

Berrone, P., Cruz, C.C., Gomez-Mejia, L.R., & Larraza Kintana, M. (2010). Socioemotional wealth and corporate response to institutional pressures: Do family-controlled firms pollute less? Administrative Science Quarterly, 55(1), 82–113.

Block, J. H. (2012). R&D investments in family and founder firms: An agency perspective. Journal of Business Venturing. 27, 248–265.

Bonesso S., Gerli F., & Scapolan A.. (2014). The individual side of ambidexterity: Do individuals’ perceptions match actual behaviors in reconciling the exploration and exploitation trade-off? European Management Journal, 32 392–405

Bugamelli M., Cannari L., Lotti F. & Magri S., (2012). Il gap innovativo del sistema produttivo italiano: radici e possibili rimedi, in A. Arrighetti A. Ninni (a cura di) La trasformazione ‘silenziosa’ Cambiamento strutturale e strategie d’impresa nell’industria italiana, Università di Parma, Collana di Economia Industriale e Applicata, http://dspace-unipr.cineca.it/bitstream/1889/2565/1/La_trasformazione_silenziosa-A%20Arrighetti_A%20Ninni.pdf

Cadieux L., Lorrain J., & Hugron P. (2002). Succession in Women-Owned Family Businesses: A Case Study, Family Business Review, 15, 17.

Carnes, C.M. & Ireland, R.D. (2013). Familiness and innovation: Resource bundling as the missing link. Entrepreneurship Theory and Practice, 37(6), 1399–1419.

Carney M. (2005). Corporate Governance and Competitive Advantage in Family-Controlled Firms. Entrepreneurship Theory and Practice 29(3), 249–265.

Cartwright, & D. Zander, A. (1953). Group Dynamics: Research and Theory. Row, Peterson, Evanston.

Cartwright, D., & Zander, A. (1968). Origins of group dynamics. In D. Cartwright & A. Zander (Eds.), Group dynamics: Theory and research (3rd ed., pp. 3-21). New York: Harper & Row.

Chen, H.-L., & Hsu, W.-T. (2009). Family ownership, board independence, and R&D investment. Family Business Review, 22, 347–362.

Chrisman, J .J., Fang, H., Kotlar, J., & De Massis, A. (2014b). A note on family influence and the adoption of discontinuous technologies in family firms. Journal of Product Innovation Management,32(3), 384-388.

Chrisman, J. J., & Patel, P. (2012). Variations in R&D investments of family and non-family firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal, 55, 976–997.

Chrisman, J. J., Chua, J. H., De Massis, A., Frattini, F., & Wright, M. (2014a). The ability and willingness paradox in family firm innovation. Journal of Product Innovation Management, 32(3), 310-318.

Chrisman, J. J., Memili, E., & Misra, K. (2013). Nonfamily managers, family firms, and the winner’s curse: The influence of noneconomic goals and bounded rationality. Entrepreneurship Theory & Practice, 38(5), 1103-1127.

Chrisman, J., Chua, J., Pearson, A., & Barnett, T. (2012). Family involvement, family influence, and familycentered noneconomic goals in small firms. Entrepreneurship Theory and Practice, 36, 267–293.

Chrisman, J.J., Chua, J.H., Litz, R. (2004). Comparing the agency costs of family and nonfamily firms: Conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice, 28, 335–354.

Craig, J. B. L., and K. Moores (2006). A 10 Year Longitudinal Investigation of Strategy, Systems, and Environment on innovation in Family Firms. Family Business Review, 19(1), 1–10.

Curimbaba, F. (2002). The dynamics of women’s roles as family business managers. Family Business Review, 15(3), 239–252.

Daspit, J.J, Madison K., Barnett T., & Long R.G. (2017), The emergence of bifurcation bias from unbalanced families: Examining HR practices in the family firm using Circumplex Theory, in Human Resource Management Review, Special Issue on “The Role of Family Science Theories for Human Resource Management in Family Firms”. http://dx.doi.org/10.1016/j.hrmr.2017.05.003

Davis, J. H., F. D. Schoorman, and L. Donaldson (1997). Toward a Stewardship Theory of Management. Academy of Management Review, 22(1), 20–47.

Davis, P. S., Harveston, P. D. (1998). The influence of family on the family business succession process: A multi-generational perspective. Entrepreneurship Theory and Practice, 22(3), 31-53.

De Massis A., Frattini F., Pizzurno E., & Cassia L. (2015). Product Innovation in Family versus NonfamilyFirms: An Exploratory Analysis. Journal of Small Business Management, 53(1), 1–36.

De Massis, A. (2012), Family Involvement and Procedural Justice Climate Among Nonfamily Managers: The Effects of Affect, Social Identities, Trust, and Risk of Non-Reciprocity. Entrepreneurship Theory and Practice, 36, 6, 1227–1234.

De Massis, A., Frattini, F., & Lichtenthaler, U. (2013). Research on technological innovation in family firms: Present debates and future directions. Family Business Review, 26(1), 10-31.

Duran, P., Kammerlander N., Van Essen M., & Zellweger T. (2016). Doing more with less: Innovation input and output in family firms. Academy of Management Journal, 59, 4, 1224–1264

Dyer, Jr. W.G. (2003). The family: The missing variable in organizational research. Entrepreneurship Theory & Practice, 27, 4, 401-416.

Dyer, W. & Dyer, W. (2009). Putting the family into family business research. Family Business Review, 22, 216–219.
Dyer, W. G. (1986). Cultural change in family firms. San Francisco and London: Jossy-Bass.

Eddleston, K. A., & Kidwell, R. E. (2012). Parent–child relationships: Planting the seeds of deviant behavior in the family firm. Entrepreneurship Theory and Practice, 36(2), 369–386.

Eddleston, K., & Kellermanns, F. W. (2007). Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing, 22(4), 545– 565.

EJFB, Call for Paper for the special Issue “Innovation in family firms: bridging the theory-­practice gap”.

Ferrari, F. (2017). The tragedy of having a daughter: costruction and reproduction or gender stereotype in Italian family SMEs. Reti, Saperi, Linguaggi. Italian Journal of Cognitive Sciences, 1.

Ferrari, F. (forthcoming). In the mother's shadow. Exploring power dynamics in family business succession. Gender in Management: an International Journal.

Gagné, M., & E. L. Deci (2005). Self- Determination Theory and Work Motivation. Journal of Organizational Behavior, 26(4), 331–362.

Gersick, K. E. (1997). Generation to generation: life cycles of the family business. Boston, A: Harvard Business Press.

Gomez-Mejia, L. R., K. T. Haynes, M. Nunez-Nickel, K. J. L. Jacobson, & J. Moyano-Fuentes (2007). Socioemotional Wealth and Business Risks in Family- Controlled Firms: Evidence from Spanish Olive Oil Mills. Administrative Science Quarterly, 52(1), 106–137.

Gudmundson, D., Tower, C. B., & Hartman, E. A. (2003). Innovation in small businesses: Culture and ownership structure do matter. Journal of Developmental Entrepreneurship, 8, 1–17.

Habbershon T. G. & Williams M. L. (1999). A resource-based framework for assessing the strategic advantages of family firms. Family Business Review, 12, 1, 1-25.

Habbershon T.G., Williams M. & MacMillan I.C. (2003). A unified systems perspective of family firm performance. Journal of Business Venturing, 18, 4, 451-465.

Harvey M., & Evans R. (1995). Life After Succession in the Family Business: Is It Really the End of Problems? Family Business Review, 8, 3, 2-16.

Haveman H.A., & Khaire M.V. (2004). Survival Beyond Succession? The Contingent Impact of Founder Succession on Organizational Failure. Journal of Business Venturing, 19, 437–63.

Henard, D.H. & Szymanski, D.M. (2001). Why some new products are more successful than others. Journal of Marketing Research, 38, 3, 362-75.

Ichniowski, C., & Prennushi. G. (1997). The effect of human resource management practices on productivity. American Economical Revue, 87(3) 291-313. ,

Ichniowski, C., & Shaw. K. (1999). The effects of human resource management systems on economic performance: An international comparison of U.S. and Japanese plants. Management Science, 45(5) 704-721.

Ichniowski, C., Kochan T., Levine D., Olson C., & G. Strauss. (1996). What works at work: Overview and assessment. Industrial Relations, 35(3) 299-333.

James, A., Jennings, J., & Breitkreuz, R. (2012). Worlds apart? Rebridging the distance between family science and family business research. Family Business Review, 25, 87–108.

Jennings, J. E., Breitkreuz, R. S., & James, A. E. (2014). Theories from family science: A review and roadmap for family business research. In L. Melin, M. Nordqvist, & P. Sharma (Eds.), SAGE Handbook of Family Business. London: Sage.

Kellermanns, F., Eddleston, K., Sarathy, R., & Murphy, F. (2012). Innovativeness in family firms: a family influence perspective. Small Business Economics, 38(1), 85-101.

Kets de Vries, M. F. R. (1996). The dynamics of family controlled firms: The good and the bad news. In C. E. Aronoff, J. H. Astrachan & J. L. Ward (Eds), Family business sourcebook, vol 1 (pp. 312–323). Marietta, GA: Business Owner Resources.

Kim, H., Kim, H., & Lee, P. M. (2008). Ownership structure and the relationship between financial slack and R&D investments: Evidence from Korean firms. Organization Science, 19, 404–418.

Klein, S. B., Astrachan, J. H., & Smyrnios, K. X. (2005). The F-PEC scale of family influence: Construct validation, and further implication for theory. Entrepreneurship Theory and Practice, 29(3), 321–339.

Kraatz, M., & Block, E. (2008). Organizational implications of institutional pluralism. In R. Greenwood, C. Oliver, R. Suddaby,K.Sahlin-Andersson (Ed.), Handbook of organizational institutionalism: 243-275. London: Sage Publication.

Labaki, R. (2011). The Nova Group case study: Family dynamics in a multigenerational French family business. International Journal of Management Cases, 13(1), 27-42.

Lansberg, I. (1999). Succeeding generations: Realizing the dream of families in business. Boston, MA: Harvard Business School Press.

Lee, J. (2006). Impact of family relationships on attitudes of the second generation in family business. Family Business Review, 19(3), 175-191.

Llach, J., & Nordqvist, M. (2010). Innovation in family and non-family businesses: A resource perspective. International Journal of Entrepreneurial Venturing, 2: 381–399.

Meyer, J. P., & Herscovitch, L. (2001). Commitment in the workplace: Toward a general model. Human Resource Management Review, 11(3), 299-326.

Michael-Tsabari N., Lavee Y. (2012). Too Close And Too Rigid: Applying The Circumplex Model Of Family Systems To First-Generation Family Firms. Journal Of Marital And Family Therapy, 38, 1, 105–116.

Morrison, E. W. (1994). Role definitions and organizational citizenship behavior: The importance of the employee’s perspective. Academy of Management Journal, 37(6), 1543-1567.

Nosé, L., Korunka, C., Frank, H., & Danes, S. M. (2015). Decreasing the effects of relationship conflict on family businesses. The moderating role of family climate. Journal of Family Issues, doi: 10.1177/0192513X15573869.

Ortega, J (2001). Job Rotation as a Learning Mechanism. Management Science, 47, 10, 1361-1370.

Padilla-Meléndez A., Dieguez-Soto J., Garrido-Moreno. A., (2015). Empirical research on Innovation in Family Business: literature review and proposal of an integrative framework. Revue of business. Management, 17, 56, 1064-1089.

Pellegrino B., Zingales L. (2014), Diagnosing the Italian Disease, Chicago Booth Working Paper. http://faculty.chicagobooth.edu/luigi.zingales/papers/research/Diagnosing.pdf

Penney, C.R. & Combs, J.G. (2013). Insights from Family Science: The Case of Innovation. Entrepreneurship Theory and Practice, 37, 6, 1421-1427.

Ryan, R. M., & Deci E. L. (2000). Self- Determination Theory and the Facilitation of Intrinsic Motivation, Social Development, and Well-Being. American Psychologist, 55(1), 68–78.

Salvato, C., Minichilli, A., & Piccarreta, R. (2012). Faster route to the CEO suite: Nepotism or managerial proficiency? Family Business Review, 25(2), 206–224.

Scabini E., Iafrate R., (2003), Psicologia dei legami familiari, Carocci, Roma.

Schulze W.S., Lubatkin M.H., Dino R.N. & Buchholtz A.K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12, 2, 99-116.

Schulze, W.S., Lubatkin, M.H., & Dino, R.N. (2003). Toward a theory of agency and altruism in family firms. Journal of Business Venturing, 18, 473–490.

Sciascia, S., Clinton, E., Nason, R.S, James, A.E & Rivera-Algarin, J.O (2013). Family Communication and Innovativeness in Family Firms. Family Relations, 62, 3, 429- 442.

Sharma P. & Manikutty, S. (2005). Strategic Divestments in Family Firms: Role of Family Structure and Community Culture. Entrepreneurship: Theory & Practice, 29, 3, 293-311.

Sharma, P., & Irving, P. G. (2005). Four bases of family business successor commitment: Antecedents and consequences. Entrepreneurship Theory & Practice, 29(1), 13-33.

Sharma, P., Chrisman, J. J., & Chua, J. H. (2003a). Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18(5), 667–687.

Sharma, P., Chrisman, J. J., & Chua, J. H. (2003b). Succession planning as planned behavior: Some empirical results. Family Business Review, 16(1), 1–15.

Sharma, P., Chrisman, J. J., Pablo, A., & Chua, J. H. (2001). Determinants of initial satisfaction with the succession process in family firms: A conceptual model. Entrepreneurship Theory and Practice, 25(3), 1–19.

Shepherd, D.A. & Haynie, M.A. (2009). Family business, identity conflict, and an expedited entrepreneurial process: A process of resolving identity conflict. Entrepreneurship Theory and Practice, 33(6), 1245–1264.

Sirmon D.G. & Hitt M.A. (2003). Managing resources: Linking unique resources, management, and wealth creation in family firms. Entrepreneurship Theory and Practice, 27, 4, 339-358.

Steier, L. (2001). Family firms, plural forms of governance, and the evolving role of trust. Family Business Review, 14, 353–367.

Stryker S. (1968). Identity Salience and Role Performance. Journal of Marriage and the Family, 4, 558-64.

Sundaramurthy, C. (2008). Sustaining trust within family businesses. Family Business Review, 21, 89–102.

Swart, J., & Kinnie, N. (2007). Simultaneity of learning orientations in a marketing agency. Management Learning, 38(3), 337–357.

Tagiuri, R., & Davis, J. A. (1996). Bivalent attributes of the family firm. Family Business Review, 9(2), 199-208.

Tajfel H., Turner J.C, (1986) The social identity theory of intergroup behaviour, in S. Worchel, W.G. Austin (Eds.), Psychology of intergroup relations, pp. 7–24, Nelson-Hall Publishers, Chicago

Tidd, J., J. Bessant, and K. Pavitt (2001). Managing Innovation: Integrating Technological, Market and Organizational Change. Chichester, UK: John Wiley & Sons.

Trott, P. (2008). Innovation Management and New Product Development. Harlow, UK: Financial Times/Prentice Hall.

Uhlaner L.M., (2006), Business Family as Team: Underlying Force for Sustained Competitive Advantage, in Poutziouris P. (edited by), Handbook of Family Business Research , Edward Elgar Publishing.

Vera C. F. & Dean, M. A. (2005). An Examination of the Challenges Daughters Face in Family Business Succession. Family Business Review, 18, 321–345.

Vozikis, G. S., Weaver, K. M., & Liguori, E. W. (2013). Do family cohesion and family member skill evaluation affect family business internal or external hiring decisions? Journal of Management Policy and Practice, 14(1), 75-89.

Wagner, J., & Hollenbeck, J. (1995). Management of organizational behavior (2nd ed.). Englewood Cliffs, NJ: Prentice-Hall.

Ward J. L. (1987). Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Jossey-Brass, San Francisco.

Wright, M., & Kellermanns, F. W. (2011). Family firms: A research agenda and publication guide. Journal of Family Business Strategy, 2(4), 187-198.

Zellweger T. M. & Astrachan, J. H. (2008). On the emotional value of owning a firm. Family Business Review, 21 (4), 347-363.

Zellweger T., & Sieger, P. (2012). Entrepreneurial orientation in long-lived firms. Small Business Economics, 8(1), 67-84.

Zody, Z., Sprenkle, D., MacDermid, S., & Schrank, H. (2006). Boundaries and the functioning of family and business systems. Journal of Family and Economic Issues, 27(2), 185-206.