Broad Search, Deep Search, and the Absorptive Capacity Performance of Family and Nonfamily Firm R&D

Abstract

This study investigates how family and nonfamily firms learn. Specifically, it asks whether family influence fosters or hinders the transformation of the potential absorptive capacity augmented by research and development (R&D) into the realized absorptive capacity embodied by innovation outcomes. The conceptual model posits that family influence will enhance the absorptive capacity performance of R&D regarding exploitative innovations that tend to result from deep external search yet diminish the absorptive capacity performance of R&D regarding exploratory innovations that tend to result from broad external search. Regression analyses using a sample of 346 Dutch manufacturing small and medium-sized enterprises largely support the hypothesized model.

The Role of Family Character in Cooperation Agreements

“…While business cooperation is widely dealt with in literature, its relationship with family character has been much less studied (Franco & Haase, 2012;Feranita et al, 2017;Brinkerink, 2018). Some authors show that certain characteristics of FBs may favor the development of cooperation agreements with third parties.…”

“…Business cooperation is a widely discussed topic in the literature; however, few studies have focused on the specific case of the family businesses (FBs) and, moreover, there is no clear consensus on the relationship between cooperation and family character (Niemelä, 2004;Roessl, 2005;Pittino & Visintin, 2011;Classen, Van Gils, Bammens, & Carree, 2012;Franco & Haase, 2012;Pittino, Visintin, Bau', & Mazzurana, 2013;Alberti, Ferrario, Papa, & Pizzurno, 2014;Feranita, Kotlar, & De Massis, 2017). Given the importance of FBs around the world, and because their peculiarities make their strategic behavior different from that of other companies (Benito-Hernández, Priede-Bergamini, & López-Cózar-Navarro, 2014;De Massis, Frattini, Pizzurno, & Cassia, 2015;Padilla-Meléndez, Dieguez-Soto, & Garrido-Moreno, 2015), it seems relevant to develop an analysis in this research line (Feranita et al, 2017;Brinkerink, 2018).…”

TMT diversity and innovation ambidexterity in family firms

“…At the same time, the different learning modes of exploration and exploitation require different attitudes toward searching for innovation. Explorative learning especially is related to external search, as new input will increase the likelihood of creating truly new combination (Brinkerink, 2018). The decision to include external partners in the innovation process depends on the behavioral characteristics of the organization's main decision makers (Classen et al, 2012).…”

“…Specifically, the search scopehow widely a firm explores external knowledge and resources for their innovation activitiesdefined as open innovation (OI) breadth (Laursen and Salter, 2006) has a positive impact on innovation (Katila and Ahuja, 2002). The role of innovation alliances in explaining family firm innovation has hardly been considered so far, as existing research tends to focus on innovation input or output, neglecting the importance of innovation activities in understanding family firms' innovation processes (Brinkerink, 2018;Feranita et al, 2017).…”

Family Business Research: Roads Travelled and the Search for Unworn Paths

“…Barbera, Stamm, and DeWitt (2018) discuss the importance of entrepreneurial legacies enacted through family storytelling, which can promote, sustain, or disrupt transgenerational entrepreneurship efforts within family businesses. Brinkerink (2018) develops and tests a model of family and nonfamily firm learning, arguing that family influence will augment the absorptive capacity performance of R&D for exploitative innovation while dampening the absorptive capacity performance of R&D for exploratory innovation. Finally, in a study of 169 Italian entrepreneurs, Pittino, Visintin, and Lauto (2018) develop six propositions on the entrepreneurial paths for next-generation family members.…”