This study examines the connection between innovative capacity and small family firm performance and how that relation is moderated by collaborative network orientation and family firm ownership. Using regression analyses of survey data, we found support for a link between innovative capacity and performance that was moderated by the collaborative network orientation and the dispersal of ownership of the family firm. Furthermore, our findings indicate that two configurations enhance this link: (a) concentrated ownership combined with high collaborative network orientation and (b) dispersed ownership and low collaborative network orientation.
AldrichH. (1989). Networking among women entrepreneurs. In HagenO.RivchunC.SextonD. (Eds.), Women-owned businesses (pp. 103-132). New York, NY: Praeger.
2.
AmbroseD. M. (1983). Transfer of the family-owned business. Journal of Small Business Management, 21, 49-56.
3.
AndersonR. C.ReebD. M. (2003). Founding-family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58, 1801-1328.
4.
AndresC. (2008). Large shareholders and firm performance: An empirical examination of founding-family ownership. Journal of Corporate Finance, 14, 431-445.
5.
BakerD.CullenJ. (1993), Administrative reorganization and configurational context: The contingent effects of age, size, and change in size. Academy of Management Journal, 36, 1251-1277.
6.
BarneyJ. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.
7.
BarneyJ. B. (1995). Looking inside for competitive advantage. Academy of Management Executive, 9, 49-61.
8.
BascoR.RodríguezM. J. P. (2009). Studying the family enterprise holistically: Evidence for integrated family and business systems. Family Business Review, 22, 82-95.
9.
BennedsenM.NielsonK. M.Pérez-GonzálezF.WolfenzonD. (2007). Inside the family firm: The role of families in succession decisions and performance. Quarterly Journal of Economics, 122, 647-691.
10.
BettisR.HittM. A. (1995). The new competitive landscape. Strategic Management Journal, 22, 439-569.
11.
BirleyS. (1986). Succession in the family firm: The inheritor’s view. Journal of Small Business Management, 24, 36-43.
12.
BlockJ. H. (2012). R&D investments and family firms: An agency perspective. Journal of Business Venturing, 27, 248-275.
13.
BrushC. G. (1992). Research on women business owners: Past trends, a new perspective and future directions. Entrepreneurship Theory and Practice, 16, 5-30.
14.
ButtnerH. (2001). Examining female entrepreneurs’ management style: An application of a relational frame. Journal of Business Ethics, 29, 253-270.
15.
Cabrera-SuárezK.Saá-PérezP. D.García-AlmeidaD. (2001). The succession process from a resource and knowledge-based view of the family firm. Family Business Review, 14, 37-47.
16.
CarneyM. (2005). Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship Theory and Practice, 29, 249-265.
17.
ChenH. L.HsuW. T. (2009). Family ownership, board independence, and R&D investment. Family Business Review, 22, 347-362.
18.
CovinT. J. (1994). Perceptions of family-owned firms: The impact of gender and education level. Journal of Small Business Management, 32, 29-39.
19.
CronqvistH.NilssonM. (2003). Agency costs of controlling minority shareholders. Journal of Financial and Quantitative Analysis, 38, 695-719.
20.
DavisP.HarvestonP. (1999). In the founder’s shadow: Conflict in the family firm. Family Business Review, 12, 311-323.
21.
DawsonJ. F.RichterA. W. (2006). Probing three-way interactions in moderated multiple regression: Development and application of a slope difference test. Journal of Applied Psychology, 91, 917-926.
22.
DelmarF.DavidssonP. (2000). Where do they come from? Prevalence and characteristics of nascent entrepreneurs. Entrepreneurship and Regional Development, 12, 1-23.
23.
DessG.LumpkinG. T.CovinJ. (1997). Entrepreneurial strategy making and firm performance: Tests of contingency and configurational models. Strategic Management Journal, 18, 677-695.
24.
DierickxI.CoolK. (1989). Asset stock accumulation and sustainability of competitive advantage. In FossN. (Ed.), Resources, firms, and strategies: A reader in the resource-based perspective (pp. 161-172). New York, NY: Oxford University Press.
25.
DooleyR.FryxellG.JudgeW. (2000). Belaboring the not-so-obvious: Consensus, commitment, and strategy implementation speed and success. Journal of Management, 26, 1237-1257.
26.
EddlestonK. A.KellermannsF. W.SarathyR. (2008). Resource configuration in family firms: Linking resources, strategic planning and technological opportunities to performance. Journal of Management Studies, 45, 26-50.
27.
EddlestonK. A.OtondoR. FKellermannsF. W. (2008). Conflict, participative decision-making, and generational ownership dispersion: A multilevel analysis. Journal of Small Business Management, 46, 456-484.
28.
EllingtonE.JonesR.DeaneR. (1996). TQM adoption practices in family-owned business. Family Business Review, 9, 5-14.
29.
FlamholtzE.RandleY. (2007). Growing pains: Transitioning from an entrepreneurship to a professionally managed firm. Hoboken, NJ: Jossey-Bass.
30.
GersickK.DavisA.HamptonM.LansbergI. (1997). Generation to generation: Life cycles of the family business. Boston, MA: Harvard Business School Press.
31.
Gómez-MejíaL.HaynesK. T.Núñez-NickelM.JacobsonK. J. L.Moyano-FuentesJ. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52, 106-137.
32.
GreenhalghC.LonglandM. (2005). Running to stand still? The value of R&D, patents, and trade marks in innovating manufacturing firms. International Journal of the Economics of Business, 12, 307-328.
33.
GudmundsonD.TowerC.HartmanF. (2003). Innovation in small businesses: Culture and ownership structure do matter. Journal of Developmental Entrepreneurship, 8, 1-17.
34.
HabbershonT. G.WilliamsM.MacMillanI. C. (2003). A unified systems perspective of family firm performance. Journal of Business Venturing, 18, 451-465.
35.
HairJ. F.Jr.BlackW. C.BabinB. J.AndersonR. E.TathamR. L. (2006). Multivariate data analysis (6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
HoldernessC.SheehanD. (1988). The role of majority shareholders in publicly held corporations. Journal of Financial Economics, 20, 317-346.
38.
IrelandR. D.WebbJ. (2007). Strategic entrepreneurship: Creating competitive advantage through streams of innovation. Business Horizons, 50, 49-59.
39.
KellermannsF. W.EddlestonK. A. (2004). Feuding families: When conflict does a family firm good. Entrepreneurship Theory and Practice, 28, 209-228.
40.
KellermannsF. W.EddlestonK. A. (2007). A family perspective on when conflict benefits family firm performance. Journal of Business Research, 60, 1048-1057.
41.
KetchenD. J.Jr.IrelandR. D.SnowC. C. (2007). Strategic entrepreneurship, collaborative innovation, and wealth creation. Strategic Entrepreneurship Journal, 1, 371-385.
42.
KetchenD. J.Jr.ThomasJ.SnowC. (1993). Organizational configurations and performance: A comparison of theoretical approaches. Academy of Management Journal, 36, 1278-1313.
43.
KocT.CeylanC. (2007). Factors impacting the innovative capacity in large-scale companies. Technovation, 27, 105-114.
44.
LambrechtJ.LievensJ. (2008). Pruning the family tree: An unexplored path to family business continuity and family harmony. Family Business Review, 21, 295-313.
45.
Leonard-BartonD. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13(8), 111-125.
46.
LingY.KellermannsF. W. (2010). The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies, 47, 322-344.
47.
LittleT. D.CunninghamW. A.ShaharG.WidamanK. F. (2002). To parcel or not to parcel: Exploring the question, weighing the merits. Structure Equation Modeling, 9, 151-173.
48.
LumpkinG. T.BrighamK. H.MossT. (2010). Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses. Entrepreneurship and Regional Development, 22, 241-264.
49.
LumpkinG. T.MartinW.VaughnM. (2008). Family orientation: Individual-level influences on family outcomes. Family Business Review, 21, 127-138.
50.
MacyB. A.MooreC. (2004, August). Assessing organizational design characteristics and outcomes: HPWS’s and traditional organizations. Paper presented at the annual meeting of the Academy of Management, New Orleans, LA.
51.
MarchJ. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2, 71-87.
52.
MarshallJ. P.SorensonR. L.BrighamK. H.WielingE.ReifmanA.WamplerR. S. (2006). The paradox for the family firm CEO: Owner age relationship to succession-related processes and plans. Journal of Business Venturing, 21, 348-368.
53.
MauryB. (2006). Family ownership and firm performance: Empirical evidence from Western European corporations. Journal of Corporate Finance, 12, 321-341.
54.
McConaugbyD. L.MatthewsC. H.FialkoA. S. (2001). Founding family controlled firms: Performance, risk, and value. Journal of Small Business Management, 39, 31-49.
55.
McGrathR. G. (2001). Exploratory learning, innovative capacity and managerial oversight. Academy of Management Journal, 44, 118-131.
MillerD.Le Breton-MillerI. (2005). Management insights from great and struggling family business. Long Range Planning, 38, 517-530.
58.
MillerD.Le Breton-MillerI.LesterR. H. (2010). Family ownership and acquisition behavior in publically-traded companies. Strategic Management Journal, 31, 201-223.
59.
MillerD.Le Breton-MillerI.LesterR. H. (2011). Family and lone founder ownership and strategic behavior: Social context, identity, and institutional logics. Journal of Management Studies, 48, 1-25.
60.
MorckR.YeungB. (2004). Family control and rent-seeking society. Entrepreneurship Theory and Practice, 28, 391-410.
61.
MunariF.OrianiR.SobreroM. (2010). The effects of owner identity and external governance systems on R&D investments: A study of Western European firms. Research Policy, 39, 1093-1104.
62.
NelsonR. R.WinterS. G. (1982). An evolutionary theory of economic change. Cambridge, MA: Belknap.
63.
O’BoyleE.Jr.PollackJ. M.RutherfordM. W. (2012). Exploring the relationship between family involvement and firms’ finance performance: A meta-analysis of main and moderator effects. Journal of Business Venturing, 27, 1-18.
64.
O’BoyleE.Jr.RutherfordM. W.PollackJ. M. (2010). Examining the relation between ethical focus and financial performance in family firms: An exploratory study. Family Business Review, 23, 310-326.
65.
Pérez-GonzálezF. (2006). Inherited control and firm performance. American Economic Review, 96, 1559-1588.
66.
RahimM. A. (1983). A measure of styles of handling interpersonal conflict. Academy of Management Journal, 26, 368-376.
67.
RitterT.GemundenH. G. (2003). Network competence: Its impact on innovation success and its antecedents. Journal of Business Research, 56, 745-755.
68.
RobinsonP. B.SextonE. A. (1994). The effect of education and experience on self-employment success. Journal of Business Venturing, 9, 141-156.
69.
RokeachM. (1973). The nature of human values. New York, NY: Free Press.
70.
SchulzeW.LubatkinM. H.DinoR. (2003). Toward a theory of agency and altruism in family firms. Journal of Business Venturing, 18, 473-490.
71.
SchulzeW.LubatkinM. H.DinoR.BuchholtzA. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12, 99-116.
72.
ShookC. (2003). Looking for insights in all the right places: What executives pay attention to impacts firm performance. Academy of Management Executive, 17, 149-151.
73.
SorensonR. L. (1999). Conflict strategies used by successful family businesses. Family Business Review, 12, 325-339.
74.
SorensonR. L.FolkerC. A.BrighamK. H. (2008). The collaborative network orientation: Achieving business success through collaborative relationships. Entrepreneurship Theory and Practice, 32, 615-634.
75.
SorensonR. L.GoodpasterK. E.HedbergP. R.YuA. (2009). The family point of view, family social capital, and firm performance: An exploratory test. Family Business Review, 22, 239-253.
76.
StewartW. H.Jr.WatsonW. E.CarlandJ. C.CarlandJ. W. (1999). A proclivity for entrepreneurship: A comparison of entrepreneurs, small business owners, and corporate managers. Journal of Business Venturing, 14, 89-114.
77.
ThomkeS. (2003). Experimentation matters: Unlocking the potential of new technologies for innovation. Boston, MA: Harvard Business Press.
78.
WangH.LawK. S.HackettR. D.WangD.ChenZ. X. (2005). Leader-member exchange as a mediator of the relationship between transformational leadership and followers’ performance and organizational citizenship behavior. Academy of Management Journal, 48, 420-432.
79.
WardJ. L. (1997). Growing the family business: Special challenges and best practices. Family Business Review, 10, 323-337.
80.
WestheadP.CowlingM.HoworthC. (2001). The development of family companies: Management and ownership imperatives. Family Business Review, 14, 369-385.
81.
ZahraS. A. (2005). Entrepreneurial risking taking in family firms. Family Business Review, 18, 23-40.
82.
ZahraS. A.HaytonJ. C.SalvatoC. (2004). Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory and Practice, 28, 363-381.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
