Toward a Theoretical Model of Shared Leadership and Innovation in Family Business

Pamala J. Dillon; Leslie Blake-Davis; Eugene See; Mengjie Xu; Craig L. Pearce; Charles C. Manz

doi:10.24310/ejfb.15.1.2025.20484

Authors

Pamala J. Dillon Duquesne University, United States https://orcid.org/0000-0003-2816-6136
Leslie Blake-Davis University of Massachusetts Amherst, United States https://orcid.org/0009-0006-1060-0597
Eugene See Coastal Carolina University, United States https://orcid.org/0000-0002-5177-6699
Mengjie Xu College of Business, Eastern Kentucky University, United States https://orcid.org/0000-0002-8123-8197
Craig L. Pearce Pennsylvania State University, United States https://orcid.org/0000-0001-8887-8886
Charles C. Manz University of Massachusetts Amherst, United States

DOI:

https://doi.org/10.24310/ejfb.15.1.2025.20484

Keywords:

Shared leadership, Innovation, Social capital, Family business, Familiness

Abstract

We advocate shared leadership as a key mechanism for unlocking innovation in family businesses. Family businesses, however, typically emphasize hierarchical leadership, reflecting the family power structure, which can pose challenges for successful innovation by limiting resources and knowledge sharing between family and non-family members. Shared leadership, enabled by both empowerment from formal hierarchical leaders, as well as self-leadership practices across the organization, can help to overcome this challenge by leveraging the familiness, and related social capital, present in family businesses. Exploring the impact of shared leadership on innovation, familiness and social capital are proposed to improve innovation in the family business. Shared leadership is proffered as a potentially powerful tool for tapping the potential of familiness, enhancing bridging ties, and building bonding ties, contributing to resources and knowledge sharing between familial and non-familial members. Theoretical implications, future research directions and implications for managerial practice are presented.

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