Although family firms are common around the world, studies on family-controlled business are limited. Prior studies mainly focused on the influences of family ownership on overall firm performance, and the results were mixed. In this study we attempted to explore the impacts of family ownership on innovation by examining the association of family control and stock market reactions to innovation announcements. We found that firms with greater family control experienced significantly more negative stock market reactions to innovation announcements. The results further indicated that divergence of cash flow and voting rights was strongly and negatively correlated with announcementperiod abnormal returns. In addition, the findings suggested a significantly positive moderating effect of institutional ownership. The conclusions were robust under various measures of family control, and remained valid after controlling other influential factors for stock market reactions to innovation announcements.
Purpose -This study aims to investigate the relationship between knowledge management capacity and organizational performance from the social interaction perspective. Design/methodology/approach -The empirical study employs a questionnaire approach. The sample for this study is drawn from the population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation. Regression analysis is used to test the hypotheses in a sample of 105 Taiwanese firms. Findings -The findings suggest that two assessments of knowledge management capacity, knowledge acquisition and dissemination, and the communication factor of social interaction are positively related to organizational performance. Further, social interaction has complementary or synergistic interaction effects with knowledge management capacity on organizational performance. Practical implications -Given the need for the use of knowledge management capacity as an enabler to improve organization outcome, firms need to be aware that social interaction would moderate the link between knowledge management capacity and organizational performance. Therefore, firms should pay special attention to formulate appropriate social interaction conditions under which knowledge acquisition and dissemination are most likely to enhance organizational performance. Originality/value -This study contributes to the literature by theoretically developing a conceptual model and then empirically examining the relationships among knowledge management capacity, social interaction, and organizational performance.
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