Transition from Economic Centric Managerial Roles to Knowledge-based Managerial Roles: Family Firms Sustainability through Business Model Innovation and Knowledge Creation

Abstract

Knowledge is key to firm growth. Managers perform knowledge-based managerial roles that foster firm growth. Surprisingly, little attention has been paid to examine the role of knowledge-based managerial roles in business model innovation (BMI). To fill this gap, the purpose of this study is to examine the impact of knowledge-based managerial roles (interpersonal, informational and decisional) in facilitating BMI within the context of family-owned businesses (FOBs) in Pakistan. This research employed a quantitative research design with a deductive-research approach, and the survey method is used to collect data from FOBs of Pakistan. Data collected were analysed through SPSS 23.0 and Smart PLS 3.0. Structural equation modeling (SEM) is used to test the different relationships proposed between selected variables. Results of study exhibit that knowledge-based managerial roles (IPR, IFR and DCR) have positive and significant associations with both BMI and knowledge-creation process. Further, the knowledge-creation process acts as a partial significant mediator between all three types of Mintzberg managerial roles and BMI. The study presents a novel contribution for government and policymakers to realize the importance of FOBs and create opportunities for their survival and growth that will boost up the economic growth of the country.