Analysis of Innovation Activities of Slovak Small and Medium-Sized Family Businesses

Abstract

Family businesses began to emerge in Slovakia after the change of social establishment in 1989, and since then they represent a significant group of business entities with a significant contribution to the economy, and have significant growth potential. Innovations have become a driving force for the future opportunities of these companies. Based on empirical research, this paper aims to identify the innovation activities of small and medium-sized family businesses in Slovakia and to determine their impact on the company’s economic results. We can state that out of small and medium-sized family businesses included in the survey, 76.5% have implemented innovations in the last five years. We use statistical tests to verify the research hypotheses. We can state that there is a statistically significant relationship between the size of the company and the number of types of introduced innovations, as well as between the generation running the company and the number of types of introduced innovations. Second-generation family businesses can, therefore, be considered more innovative than first-generation family businesses. We investigate the impact of the COVID-19 coronavirus pandemic on innovation activities in these companies. It is interesting that in 30.6% of family businesses the COVID-19 coronavirus pandemic positively affected their innovation activities.

The Influence of Female Directors and Institutional Pressures on Corporate Social Responsibility in Family Firms in Latin America

“…In this respect, investment in CSR allows the firm to accumulate reserves of goodwill that provide insurance against misadventure, bolster market confidence in the firm and enhance its image, all of which contribute to maintaining a continuing, stable flow of earnings, since even in adverse situations these factors will make stakeholders more likely to give the company the benefit of the doubt. This protection is especially attractive for family firms, whose owners often concentrate all their capital within the organisation (Górriz and Fumás 1996;Pérez-Pérez et al 2019;Urbaníková et al 2020). The adoption of CSR-oriented policies, thus, provides a means of ensuring the continuity of the family legacy and of strengthening and protecting the family's SEW.…”

Family Firms and Innovation from Founder to Successor

“…However, in their studies about Slovakian family firms, Urbaníková et al (2020) highlight that second-generation family firms changed the companies' approach to innovation and introduced more types of innovations than first-generation family firms. Woodfield and Husted (2017) argue that new generations can enrich the body of knowledge held by a family business by bringing in new explicit knowledge gained through education and work experience.…”

“…Sci. 2021, 11, 54 2 of 19 opportunity to increase a family firm's innovativeness (Urbaníková et al 2020;Rondi et al 2019;Hauck and Prügl 2015;Litz and Kleysen 2001). However, few studies have explored how innovation in family firms changes over time and which factors may influence its evolution across generations.…”

Open Innovation in the Visegrád Four Countries: A Literature Review

“…Another possible cooperation partners are schools and universities. 9.2% of family businesses surveyed by Urbaníková et al (2020) in Slovakia plan to cooperate with secondary schools, and 22.5% of companies plan to cooperate with universities. However, 74.5% of companies do not plan to cooperate with schools.…”

“…Czech companies in the manufacturing sector that cooperate with universities display positive influence on their performance (Stejskal et al, 2016). On the other hand, only 22.5% of family companies in Slovakia surveyed by Urbaníková et al (2020) plan to cooperate with universities. This opinion seems to be mutual as the willingness of Slovak universities to cooperate with businesses is not high because public funds are more stable and easier to obtain (Klasová et al, 2019).…”