Explanatory and predictive drivers of entrepreneurial orientation and innovation capacity: Evidence from family enterprises

Abstract

This paper aims to identify potential explanatory variables of the entrepreneurial orientation and innovation capacity (EO-IC) of family enterprises (FEs) through a comparative study of family businesses in Spain and Latin America. The innovation literature reports a paradigm shift whereby the dynamic boost provided by corporate governance and productivity is playing an increasing role as a driver of EO-IC and sustainable competitive advantage. This issue acquires particular relevance in the ase of family firms, where entrepreneurial and innovation capacities are characteristically hampered by socio-emotional and risk-aversion factors. We construct a panel of data on 182 large family enterprises (1,820 observations) domiciled in Argentina, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Spain, drawing on the Thomson Onebanker and ORBIS databases for the period 2008-2018. The results reveal the emergence of new explanatory variables for the structure of the family-firm EO-IC framework, some related to productivity; others more basically to corporate governance. They also show that, in Latin America, the use of business efficiency (productivity) factors in the planning and potentiation of EO-IC by family firms is hampered by the institutional (legal, regulatory, labour and educational) environment, where traditional factors such as firm size and ownership concentration are more relevant. In the Spanish case, however, the evidence points to a transition from traditional inputs towards business efficiency and productivity-related factors.

The socioemotional wealth of leaders in family firm succession and corporate governance processes: a systematic literature review

“…The literature on innovation reports a change in paradigm in which the dynamic impulse provided by corporate governance and productivity is increasingly important for sustainable competitive advantage (Mart ınez-Bobillo et al, 2021). In turn, Hernandez-Perlines et al (2021b) underline how the influence of innovation capacities on performance is greater in second-generation than first-generation family firms.…”

“…The literature on innovation reports a change in paradigm in which the dynamic impulse provided by corporate governance and productivity is increasingly important for sustainable competitive advantage (Martínez-Bobillo et al ., 2021). In turn, Hernandez-Perlines et al .…”

Capítulo 22. Impulsar la innovación y el emprendimiento como mejora continua en pequeñas empresas industriales en Monclova, Coahuila.

“…Se encuentra verdadera, ya que los líderes de las pequeñas empresas industriales aseveran que una compañía que busca estar innovando, tiende a buscar mejorar día con día. Por su parte, Martínez et al (2021) en los hallazgos encontrados en su investigación "Explanatory and predictive drivers of entrepreneurial orientation and innovation capacity: Evidence from family enterprises" comparte que la innovación ayuda y beneficia a las empresas en la diferenciación.…”

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“…El marketing estratégico, se convierte en un diferencial de las empresas exitosas, sea de empresas grandes y consolidadas, o de una empresa que comenzó como una orientación emprendedora, cuando se vinculan procesos de innovación, creando esta capacidad que permite a las empresas ser dinámicas, y logrando ser percibidas de una forma distinta por el consumidor final (Martínez et al, 2021). La cultura organizacional que vincula la capacidad de innovación y el reconocimiento del nivel del mercado, deben ser medidos de manera continua, especialmente en las empresas de familia, ya que el nivel del mercado es una variable que impulsa y direcciona la innovación en la organización; por tanto, ambas variables crecen o decrecen en paralelo, manteniendo una correlación que impacta directamente en la productividad de la empresa y la cultura organizacional (Solarte et al, 2020).…”