Principles for innovation management in family firms

Abstract

Purpose Family firms (FF) reveal a considerable heterogeneity in their innovation behavior. Due to the successful long-term preservation of their innovation capacity via special resources and routines, multi-generational FF are of special interest in terms of learning from good practices. Against this background, the purpose of this paper is to ascertain principles for successful innovation behavior in long-term successful FF and to contribute to bridging the theory-practice gap. Design/method/approach Results are generated by analyzing innovation and innovation processes in five cases of long-term successful FF. On the basis of these good practice cases, the “rules of the game” of innovating are re-constructed using fine and system analyses based on narrative interviews with the FF CEOs. Findings Intense reflection on the innovation characteristics of the five good practice cases along with a critical examination of the literature on innovation in FF were used to derive practical suggestions for FF in the form of 11 principles for FF taking a proactive interest in innovation. Practical implications The 11 generated principles of successfully innovative FF were validated by FF CEOs who confirmed the practical relevance of these principles as valuable guidelines for successful innovation. Owners and managers may reflect on these principles against the background of the innovation behavior of their firms and adapt them to their contextual conditions. Originality/value These principles serve as tangible suggestions for developing adequate innovation management strategies for individual FF. Furthermore, two FF CEOs were invited to comment on the viability of principles based on their comprehensive practical experience.

Environmental commitment and innovation as catalysts for export performance in family firms

“…Dwelling on the subject of socio-emotional wealth and its restrictive influence on family firms' innovation activity, Calabro et al ( 2019) indicate that family business owners consider big innovation projects as threats to capital and family control. Equally, Frank et al (2019) correspond that family firms' sense of independence hinders their openness to external collaboration and innovation opportunities, which consequently slows down new product and process development. Yet, Calabro et al ( 2019) also suggest that conflict within the family and different risk-taking approaches tend to engender agency costs that would eventually limit availability of resources for commitment to innovation projects.…”

The hidden role of owners' spouses in family firm innovativeness: a dynamic managerial capabilities perspective

“…Recent conceptual study (Calabrò et al , 2019) has demonstrated the significance of innovativeness for family firms, and the relationship between family firms and innovativeness has been addressed by only a few studies (Frank et al , 2019). This research therefore enhances our knowledge in the domain of family firm innovation.…”

Unraveling the Role of Shared Vision and Trust in Constructive Conflict Management of Family Firms. An Empirical Study From a Mixed Methods Approach

“…However, there is evidence that some trust-breaching practices, such as asymmetry in the accountability of incentive norms impair the innovation of family firms (De Massis et al, 2016). A study about innovative successful practices of family enterprises identified trust and constructive conflict as mutually reinforced processes in the innovation process (Frank et al, 2019).…”

“…Trust in the family firm's collective abilities also increases innovation (Holt and Daspit, 2015 ). Indeed, trust relationships with the external stakeholders also contribute to innovation by promoting honest feedback in evaluating innovation projects (Frank et al, 2019 ).…”