Open innovation in family firms: empirical evidence about internal and external knowledge flows

Abstract

Purpose The purpose of this paper is to shed light on how family firms execute open innovation strategies by managing internal and external knowledge flows (KF) to provide a deeper understanding of family firms’ ability to innovate through traditions and create value across generations. Design/methodology/approach Empirical evidence was collected using an online survey of a sample of 208 Apulian entrepreneurs, who were members of the association of young entrepreneurs of Confindustria in the Apulia region (southern Italy). Findings The study derives a model that explains the most relevant factors behind the innovation processes developed by young entrepreneurs in family firms: network membership benefits; KF; track record of innovation; and the entrepreneurial attitude of employees. Research limitations/implications By integrating insights from different research streams, namely, innovation management, open innovation and family firms, the study provides a novel contribution to the open innovation process in family firms. Practical implications The study offers interpretative lenses for entrepreneurs and managers to understand the most suitable knowledge transfer process for encouraging open innovation in family firms, taking into consideration young entrepreneurs’ traditions and interpersonal skills, the KF in local ecosystems and network benefits as the main variables supporting the innovation process. Originality/value This study creates a link between open innovation and family firm research by providing an empirically grounded model illustrating how the innovation process is realized in family firms.

The family’s effect on knowledge sharing in family firms

“…Within the family business literature, most of the research has explored the outcomes associated with KS. These studies have found that the extent to which family and non-family employees share knowledge within family firms is positively related to the organization's technological capabilities (Zahra et al, 2007), entrepreneurial orientation (Barroso Martı ´nez et al, 2016;Pittino et al, 2018), innovation (Arzubiaga et al, 2019;Calabro `et al, 2019;Casprini et al, 2017;Del Vecchio et al, 2019;Price et al, 2013), internationalization (Fang et al, 2018) and performance (Jaskiewicz et al, 2013).…”

Opportunity recognition and knowledge transfer in the champagne industry: A conceptual analysis

“…This argument implies that “embeddedness” (Granovetter, 1985) resulting from network relationships can facilitate trust and thus create the preconditions for successful community knowledge transfer. Open innovation in family firms played a critical role in the innovation process (Del Vecchio et al, 2019). For example, the Association des Champagnes Biologiques (Association of Organic Champagnes), representing organic winegrowers and houses, aims to collect and create a shared knowledge base among its members, promoting the exchange of scientific and technical knowledge to facilitate conversion to organic standards.…”

Impact of product innovativeness on technology switching in global market

“…In practice, firms are increasingly striving to extend their innovative capacities through strategic partnerships with lead users who can utilize open innovation effectively, leveraging their value-creating knowledge and innovation capabilities (Franke et al , 2006; Santoro et al , 2018). Such users can function as an external research hub for the firm, providing valuable market information (Del Vecchio et al , 2019; Vrontis and Rossi, 2016).…”