Open innovation search strategies in family and non-family SMEs

Abstract

Purpose The purpose of this paper is to investigate what types of open innovation search strategies are associated with internal innovation activities in family and non-family SMEs within natural resource-based clusters. Design/methodology/approach This study is based on an empirical analysis of a sample of 245 Chilean firms. Findings Results suggest that while family and non-family SMEs do not significantly differ in terms of internal innovation activities, important differences exist in terms of open innovation search strategies. In particular, family SMEs search for new ideas and knowledge within their closest network of relationships (e.g. customers, suppliers and competitors), whereas non-family SMEs mainly focus on broader network relationships (e.g. universities, public institutions and fair trade organizations). Practical implications This study shows that within a natural resource cluster, the types of firm do matter. In fact, family and non-family SMEs use different open innovation search strategies to innovate; hence, this research may help and assist policy makers in tailoring innovation policies aimed at expanding the potential benefits of clusters for regional growth and development. Originality/value This research addresses the call to further investigate the link between family SMEs and innovation in developing countries, given that SMEs may also act as a lively player for regional development.

Explanatory and predictive drivers of entrepreneurial orientation and innovation capacity: Evidence from family enterprises

“…This is far from the case in Latin America, where the weakness of the legal system can lead to the replacement of state functions by FEs. Thus, we can observe how micro-enterprises emerge in so-called subsistence entrepreneurship (Beckert and Dewey 2017), small and medium-sized family businesses grabbing economic opportunities as they arise (Basco and Calabrò 2016), or large family conglomerates using a search strategy and exploiting any available profit-making opportunity (Morck and Yeung 2003;Robles et al 2016). In short, we can say that the EU geopolitical environment has enabled Spain to achieve generally higher business competitiveness levels in all firms, FEs included.…”

Family Business Control, Strategy Selection and Strategic Performance Measurement Usage

“…Firms that are controlled by the founding family are likely to be related to the role of the family in managing the business even though the business is managed by management outside the family, this is because they feel they are the creators and the caregiver family (Pham et al, 2019). This is as explained by (Basco and Calobro, 2016) that the involvement of the family in business activities can affect the dominance of the owner in managing the business. When the family has a dominant role in business management, management must take into account various goals based on the needs of the business owner, therefore, the balance between the family of the owner and business goals will greatly affect the business management process (Basco and Pérez Rodríguez, 2011).…”

The influence of open innovation practices on business performance in Mexican family and non-family SMEs

“…Companies practicing open innovation not only use their internal efforts and processes, but also attach external knowledge to generate value for customers (Van der Ploeg, 2011). Open innovation also provides tools that especially help family and non-family SMEs (Alberti, Ferrario, Papa, & Pizzurno, 2014;Basco & Calabrò, 2016;Casprini et al, 2017) to develop internal innovation activities, which are complemented with information from outside the company to create profitable innovation (Basco & Calabrò, 2016).…”

“…Nevertheless, it is fundamental to protect a business's intellectual property by rigorously regulating the information, knowledge or technology, which is shared with the exterior (Lichtenthaler, 2009). According to the literature, most family business show a tendency to following inbound practices, and on the contrary non-family businesses use outbound practices of open innovation (Basco & Calabrò, 2016;Lambrechts, Voordeckers, Roijakkers, & Vanhaverbeke, 2017).…”