Family firms are often portrayed as an important yet conservative form of organization that is reluctant to invest in innovation; however, simultaneously, evidence has shown that family firms are flourishing and in fact constitute many of the world’s most innovative firms. Our study contributes to disentangling this puzzling effect. We argue that family firms—owing to the family’s high level of control over the firm, wealth concentration, and importance of nonfinancial goals—invest less in innovation but have an increased conversion rate of innovation input into output and, ultimately, a higher innovation output than nonfamily firms. Empirical evidence from a meta-analysis based on 108 primary studies from 42 countries supports our hypotheses. We further argue and empirically show that the observed effects are even stronger when the CEO of the family firm is a later-generation family member. However, when the CEO of the family firm is the firm’s founder, innovation input is higher and, contrary to our initial expectations, innovation output is lower than that in other firms. We further show that the family firm–innovation input–output relationships depend on country-level factors; namely, the level of minority shareholder protection and the education level of the workforce in the country.

/pdf/doing-more-with-less-innovation-input-and-output-in-family-31iy0en1i5.pdf

Doing More with Less: Innovation Input and Output in Family Firms

Recent research on management innovation, i.e. new managerial processes, practices, or structures that change the nature of managerial work, suggests it can be an important source of competitive advantage. In this study, we focus on management innovation at the organization level and investigate the role of leadership behaviour as a key antecedent. Due to its prominent role within organizations, top management has the ability to greatly influence management innovation. In particular, we focus on leadership behaviour and examine transformational and transactional leadership. Additionally, as contextual variables like organizational size may influence the impact of leadership, we investigate its moderating role. Findings show that both leadership behaviours contribute to management innovation. Interestingly, our study indicates that smaller, less complex, organizations benefit more from transactional leadership in realizing management innovation. On the other hand, larger organizations need to draw on transformational leaders to compensate for their complexity and allow management innovation to flourish.

https://papers.ssrn.com/sol3/Delivery.cfm/j_1467-6486_2010_00976_x_wml.pdf?abstractid=1973840&mirid=1

Management innovation and leadership: The moderating role of organizational size

The purpose of this article is to review and systematize prior work on technological innovation in family firms and to open up an agenda to guide future research into this promising area. The study shows that family involvement has direct effects on innovation inputs (e.g., R&D expenditures), activities (e.g., leadership in new product development projects), and outputs (e.g., number of new products), as well as moderating effects on the relationships between these steps of technological innovation. The article uses theories applied in family business research (e.g., agency theory) to discuss opportunities for extending technological innovation frameworks by considering family involvement.

Research on Technological Innovation in Family Firms: Present Debates and Future Directions

Internet and digitization are fundamentally changing and disrupting newspaper companies’ traditional operating models. Disruptive innovation theory offers explanations for why companies succeed or fail to respond to disruptive innovations. This study builds on disruptive innovation theory by ascertaining the role of dynamic capabilities in the performance of response to digital disruption. Empirical results suggest that first-order dynamic capabilities that are created by changing, extending, or adapting a firm’s existing resources, processes, and values are positively associated with building digital platform capabilities, and that these capabilities impact the performance of response to digital disruption. For information systems (IS) researchers, this study clarifies the role of first-order dynamic capabilities in responding to digital disruption. For IS practice, it helps managers to focus on the most promising factors for creating first-order dynamic capabilities, for building digital platfor...

The Role of Dynamic Capabilities in Responding to Digital Disruption: A Factor-Based Study of the Newspaper Industry

https://cyberleninka.org/article/n/258815.pdf

Closed or open innovation? Problem solving and the governance choice

This paper consolidates the state of academic research on innovation. Based on a systematic review of literature published over the past 27 years, we synthesize various research perspectives into a comprehensive multi-dimensional framework of organizational innovation - linking leadership, innovation as a process, and innovation as an outcome. We also suggest measures of determinants of organizational innovation and present implications for both research and managerial practice.

A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature

Survival of Japanese subsidiaries in the Middle East and North Africa

A Framework for Integrating Organizational Learning, Knowledge, Capabilities, and Absorptive Capacity

Previous research investigating the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) reveals the importance of industry specificity. Drawing on strategic stakeholder theory, we argue that the strategic fit between CSR activities and value chain activities contributes to industry-specific effects in the CSR–CFP relationship. Given the multidimensional nature of CSR, some CSR activities will be more impactful for certain industries than others, because industries differ in value chain activities and salient stakeholders. Specifically, we propose and test a set of hypotheses for two industries positioned on the different ends of the industry spectrum based on their ecological footprint – healthcare and resource extraction. We further examine the industry specificity of the CSR–CFP relationship by exploring external economic conditions (the 2008–2009 recession) as a boundary condition. Our study contributes to the extant literature by demonstrating the role of strategic fit between CSR and value chain activities in explaining the influence of CSR on CFP. Additional testing of this mechanism in times of economic hardship adds a unique aspect to our theoretical and empirical contributions.

https://onlinelibrary.wiley.com/doi/pdf/10.1111/1467-8551.12402

The Importance of Corporate Social Responsibility Strategic Fit and Times of Economic Hardship

Purpose – This paper aims to deconstruct the economic position of Turkey in comparison to its immediate neighbors, Central and South‐Eastern Europe (CSEE), and the Middle East, with a specific emphasis on Japanese Foreign Direct Investment (FDI).Design/methodology/approach – Several determinants of FDI intensity identified in the extant research are used to conduct this comparative analysis. The data is based on the foreign subsidiaries of Japanese firms.Findings – The results confirm the ambiguous position of Turkey. It enjoys a high Gross Domestic Product growth despite a relatively low openness to trade. From cultural and political risk perspectives it is closer to the Middle East than to CSEE. In spite of its location advantages, the institutional environment continues to be an impediment, preventing Turkey from realizing its full investment potential. Thus, Japanese investors choose to invest in CSEE economies, which are slightly closer culturally to Japan, and significantly less risky.Research limit...

Marina Apaydin

Papers

A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature

Survival of Japanese subsidiaries in the Middle East and North Africa

A Framework for Integrating Organizational Learning, Knowledge, Capabilities, and Absorptive Capacity

The Importance of Corporate Social Responsibility Strategic Fit and Times of Economic Hardship

Analyzing FDI trends in emerging markets: Turkey vs CSEE and the Middle East