Family-unique resources, marketing resources, and family owners’ willingness to pursue radical innovation: A model and test

Family business succession and innovation: a systematic literature review

“…Furthermore, Tidd et al ( 1997 ) define innovation as a process of transforming opportunities into new ideas and putting them into practice. Ultimately the willingness and ability to innovate (Hu et al, 2022 ), regardless of specific innovation strategy (Scholes et al, 2021 ), fundamentally affects the longevity of family businesses.…”

“…A study by Classen et al ( 2014 ) also reports that family businesses produce more process innovations than non-family companies. However, De Massis et al ( 2015a ) found that the innovation climate is more adverse to risk and more informal in family businesses, and their degree of innovativeness varies markedly for resource and socioemotional reasons (Hu et al, 2022 ).…”

When is R&D beneficial for family firms? The concurrent roles of CSR and economic conditions

“…In normal economic periods, firms often commit to market expansion and adjust strategies to behave attractively to the market, expecting to witness increases in sales and profit (Osmani and Deari, 2016; Martin‐Rios and Pasamar, 2018). Under the market expansion, family firms could have higher current ratios, profit margins, and cash flow ratios (Scholes et al, 2021; Hu et al, 2022a), reflective of higher liquidity. Liquidity is an essential enabler of firms' R&D activities, which allows family firms to ease their attention to the preservation of SEW.…”

“…Therefore, family firms can bear more risks strategically and hold a gain frame. First, family firms generally own more cash and hold a low desire to rely on debt (Hu et al, 2022a). In normal economic periods, family firms can accumulate more patient capital, easing family owners' concerns about the potential negative impacts of risky activities on financial performance and firm survival (Hu and Hughes, 2020).…”

“…Based on Zhao et al (2020), we removed firms from the financial sector, firms with a single owner, and those with extensive missing data (e.g., shareholders' names, ownership percentages, and R&D expenditure). Second, we adopted the 'ultimate owner' criteria used by Cruz et al (2014) and Hu et al (2022aHu et al ( ,2022b to identify listed US family firms in ORBIS: (1) at least one shareholder shares the same family name with the firm's ultimate owner; (2) at least one individual (except the ultimate owner) shares the same family name with the ultimate owner; at the same time, at least one shareholder shares the same family name is on the board of directors; (3) the ultimate owner and shareholder/shareholders who share the same family name should own at least 20% of the shares during ten-consecutive years within the period between 1995 and 2013. Moreover, we manually inspected annual reports and official websites to confirm relationships among shareholders.…”