Researchers have argued that family firm innovation is paradoxical in nature, in that family firms often display less innovation than their nonfamily counterparts, yet they are able to be more innovative. The aim of this article is to unpack this paradox by exploring how differences in family firms’ ability (discretion and resources) and willingness (economic and noneconomic) affect their innovation activities. We adopt a qualitative, interpretive methodology based on four case studies of Saudi family firms operating in the indigenous date industry. Our findings emphasize the importance of having all four sources of ability and willingness in order for innovation to occur and how, when the new generation enters the business, the family firm’s innovation posture changes to either ‘lagging’ or ‘reviving’. By exploring innovation in the date sector in Saudi Arabia, we contribute to the ability–willingness paradox by distinguishing between the different sources of ability and willingness and add to an emerging narrative that acknowledges the integration of past knowledge with new innovative practices as an important and unique mechanism by which family firms can harness innovation.

PurposeThere is a significant gap in understanding with regards to the role of cultural context in family business research. This paper aims to address this by exploring the critical and pervasive influence of culture in shaping the entrepreneurial behaviours of family businesses based in Saudi Arabia.Design/methodology/approachThe authors adopt a qualitative interpretive case study approach, which draws upon interviews with the incumbents and successors of ten Saudi Arabian family firms.FindingsThe authors’ empirical evidence reveals the importance of family ties and culture on the entrepreneurial behaviour of family firms in general, and the influence of “Islamic capital” on the intergenerational transfer of family legacy in particular.Originality/valueThe authors provide critical insights on how Islamic capital motivates Saudi family firms to maintain harmony, avoid disputes and create a legacy for future generations by engaging in entrepreneurial behaviours.

Indeed, such entities represent a unique context whereby familial ties (Eddleston, Chrisman, Steier, & Chua, 2010), family goals and values (Kotlar & De Massis, 2013), differing family business governance approaches (Schulze, Lubatkin, Dino, & Buchholtz, 2001), and family dynamics influencing business succession (Helin & Jabri, 2016) intersect. Among contextual influences on family business is the religious beliefs of the founder, the family, and the wider national culture (Kavas, Jarzabkowski, & Nigam, 2020). Religious influences not only shape societies, but also can have a profound impact on organizational decisions, operations, and ethical behavior (Tracey, 2012). As recent reviews have demonstrated (Vazquez, 2018

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