Why are some family firms not innovative?: Innovation Barriers and Path Dependence in Family Firms

Yupanqui-Lorenzo, Daniel E.; Utrilla, Pedro Núñez-Cacho; Akhter, Naveed; Chirico, Francesco

doi:10.1016/j.scaman.2021.101182

Cited by 17 publications

(7 citation statements)

References 125 publications

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“…These findings suggest that the nature of ownership-and thus the key difference between family and non-family firms-is driving knowledge exchange differences. The results on the distinctiveness of family and non-family firms with regard to knowledge-sharing strategies can be compared to other works that have equally found distinct patterns across family and non-family firms relating to knowledge exchange: factors explaining such distinct patterns include distinct business practices and mechanisms (Chang et al, 2022;Clauß et al, 2022), differences in external knowledge sourcing (Duong et al, 2022), or path dependence (Lorenzo et al, 2022).…”

Section: Discussionmentioning

confidence: 86%

“…Third, in contrast to other studies (e.g. Pittino et al, 2021;Zahra et al, 2007), we did not control for the actual level of family (e.g., multi-generational) involvement in governance and managerial knowledge exchange, leading to the here unexplored issue of path dependence in family firms (Lorenzo et al, 2022). Keeping these limitations in mind, future research may try to assess the robustness of our findings, by assessing family and non-family firm networks in footwear clusters in other countries or assess inter-firm network issues in other sectors and clusters that hold structural similarities (such as creative clusters).…”

Section: Discussionmentioning

confidence: 92%

“…From a theoretical point of view, our work contributes to the wider academic debate on inter-firm networks in at least two ways. First, our findings on family firms' relationships with regard to knowledge transfer could be read in the context of the path-dependent capabilities influencing innovation in family firms (Lorenzo et al, 2022), thereby highlighting further the complexity underlying the nexus of knowledge exchange, innovation in family-firms and their networks (Chirico et al, 2022). Second, we contribute to the wider debate on interfirm networks and knowledge transfer, by highlighting that family firm-based networks can be usefully understood and connected within the literatures on social capital and entrepreneurship: not only by recognizing that entrepreneurs and entrepreneurship are socially situated (Herrero et al, 2021), but also considering the uniqueness of family firms in the development of organizational social capital and inter-firm networks (Yates et al, 2022).…”

Section: Discussionmentioning

confidence: 98%

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Family firm network strategies in regional clusters: evidence from Italy

et al. 2023

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Knowledge networks in regional clusters are fundamental to support innovation and local development. Within clusters, family firms are key in creating business opportunities and supporting the establishment of inter-organizational networks. Yet, their role within regional clusters for knowledge transfers is still not well understood, especially in comparison with non-family firms. This paper applies Exponential Random Graph Models (ERGMs) to network data collected from the Parabiago cluster, one of the most important Italian footwear clusters, to contribute to a better understanding of the network strategies of family firms. We identify distinct network strategies associated with the cluster firms, accounting for different knowledge exchange types: technological, market, and managerial. In our modelling, we control for firm-level attributes and dyadic-level attributes, such as geographical distance and cognitive proximity between cluster firms. Our results suggest that the proneness of family firms to grow networks is highly robust relative to non-family firm relationships, irrespective of knowledge types being exchanged. Moreover, family firms tend to establish connections with other family firms, showing the presence of homophily in their networking approach; however, non-family firms are rather different, since they do not have the same homophilous approach when it comes to exchange knowledge with other non-family firms. These results indicate that the nature of ownership is driving knowledge exchange differences. This key feature of family-only relationships in clusters may help managers and policymakers in devising more effective and targeted cluster strategies.

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Section: Discussionmentioning

confidence: 86%

Section: Discussionmentioning

confidence: 92%

Section: Discussionmentioning

confidence: 98%

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Family firm network strategies in regional clusters: evidence from Italy

et al. 2023

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Section: Introductionmentioning

confidence: 99%

“…Le Breton-Miller and Miller (2006) state that family companies pay more attention to these practices, are more attentive to employee training, and make more effort to formulate career development policies than nonfamily companies. Therefore, differential behavior between nonfamily businesses and family businesses in terms of employment is clear given the existing empirical evidence (Lorenzo et al, 2022;Rivo-L opez et al, 2020). Therefore, the study of the management of people is a key topic for these organizations and the number of research articles studying some aspect of human resources in relation to firm performance is increasing considerably.…”

Section: Introductionmentioning

confidence: 99%

Advance employee development to increase performance of the family business

Utrilla

Grande-Torraleja

Albarracín

et al. 2022

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PurposeThe search for competitiveness by family-owned companies has led us to research topics that may help these companies succeed. The management of human capital is undoubtedly one of the keys to success, and the practices of employee development (training, promotion, succession, career planning, mentoring and coaching) help improve the performance of these companies.Design/methodology/approachThis paper is based on studying a sample of 560 family companies and analyzing the relationship between performance of the family businesses and the use of employee development practices. The techniques used were confirmatory factor analysis and structural equation modeling.FindingsThe results show that employee development has a direct effect on the indicators of performance in family companies. The authors have developed a series of practical implications for companies that justify investments in and efforts with regard to employee career development.Research limitations/implicationsFamily businesses need to understand the development needs of their employees. In addition, the very processes and tasks performed. The authors have developed a number of practical implications for companies that justify the investments and efforts made in employee career development. This work validates the usefulness of the use of certain practices for the development of employees in family businesses, allowing the company to generate human capital to build a competitive position in the market.Practical implicationsThe results of this study suggest that family businesses should understand the development needs of their employees and that various practices are available to help detect these needs. Family businesses should see individual development processes as an opportunity to improve the performance of employees, which could avoid conflicts in such businesses (Qiu and Freel, 2020). Companies should develop career and succession plans that enable these changes to be faced throughout the company, ensuring that when handover occurs, the candidates are sufficiently qualified in accordance with their career paths. The present research study shows that coaching is a powerful tool for improving performance. Moreover, mentoring appears to be an important part of employee development. For this reason, mentoring programs should be formally planned with designated objectives. In addition, family businesses should provide employees with real opportunities for promotion and the development of their skills and abilities, which is a way to retain nonfamily professionals (Ramankutty and Pujar, 2017).Social implicationsFamily businesses are a very important part of the productive activity of a country and their continuity is necessary to maintain employment and income. The management of people in family businesses is a key aspect for their success, therefore knowing the key aspects for the development of human capital will have a positive influence on maintaining employment and income.Originality/valueThis paper addresses the study of people development processes in family businesses and proves its usefulness to improve performance, considering the formal planning of succession processes and professional careers, providing qualifications to candidates and ensuring that they are show satisfaction with their professional evolution in the company. Likewise, it is positive for family businesses to use coaching relationships, formally scheduled and employing a coach from abroad. The other tool that will favor the development of employees is mentoring, formally programmed, establishing objectives and properly studying the mentor's profile. For this tool to be applied successfully, it is necessary to get the participants to commit to the mentoring process. Finally, the organization must provide its employees with real opportunities to promote, training them and developing their skills.

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The interactive effect of innovation capability and potential absorptive capacity on innovation performance

Hurtado-Palomino

Gala-Velásquez

2022

Journal of Innovation & Knowledge

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Why are some family firms not innovative?: Innovation Barriers and Path Dependence in Family Firms

Cited by 17 publications

References 125 publications

Family firm network strategies in regional clusters: evidence from Italy

Family firm network strategies in regional clusters: evidence from Italy

Advance employee development to increase performance of the family business

The interactive effect of innovation capability and potential absorptive capacity on innovation performance

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