Technological Innovation Inputs, Outputs, and Performance

Abstract

The aim of this research is to study the moderating role of family management in the relationships between the intensity of research and development and the occurrence of continuous technological innovation and between the existence of technological innovation outcomes and long-term firm performance. The results show that family management reduces efficiency in the conversion of research and development expenses into technological innovation outcomes over time. Our findings also suggest that the influence of family management significantly contributes to improving the effect of the achievement of technological innovation on long-term performance.

Semantic test of a technology management model in family business

“…Some short-term inefficiencies detected in the literature can be corroborated. The case under analysis confirms strong direct influence and control from the family, clearly signaled in both network analyses, endorsing findings in the literature about the family managers unwillingness to cede control (Diéguez-Soto et al, 2016). Particular TMM functions such as surveillance and enabling welcome STI partnerships and external knowledge, which is an indicator of the firm reliance on partners to identify new technologies and make their development a reality, as indicated by Alberti andPizzurno (2013), De Massis et al (2013) and Classen et al (2012).…”

“…From a family firm research perspective, which emphasizes the family's strong influence on the firm's decision-making process (De Massis, Frattini, & Lichtenthaler, 2013;Diéguez-Soto, Manzaneque, & Rojo-Ramírez, 2016), management innovation starts with the family owners. As a socially bounded organization, all flow of activities, integration of innovative work and emotional impulse to innovate go through the family (Dougherty, 2008).…”

“…Thus, the role of mediator in the identification of useful resources, the establishment of effective socialization (business meetings), knowledge sharing (absorption) and collaboration for the transfer and circulation of ideas and knowledge goes to the family (Temel, Mention, & Torkkeli, 2013), who becomes either a facilitator or a barrier between the firm's social capital and the innovation outcome. Table 1 below summarizes relevant family firms' behaviors as identified by some scholars (De Massis et al, 2013;Diéguez-Soto et al, 2016). As indicated, family firms would have different patterns depending on short vs long term vision.…”

“…A variety of organizational and strategic behaviors in family businesses have been identified, though our knowledge about the relation between family business behavior and innovation remains limited (De Massis, Frattini & Lichtenthaler, 2013;Diéguez-Soto, Manzaneque & Rojo-Ramírez, 2016). Continued research in this topic becomes therefore necessary, which improved understanding would help us identify determinants for family firm development.…”

Disentangling antecedents and performance effects of family SME innovation: A knowledge-based perspective

“…Prior research has shown that family firms may compete successfully in technologically rich environments and, more importantly, that the family and its knowledge are a fundamental resource for this success (Eddleston et al 2008;Basco 2014;Diéguez-Soto et al 2016;Llach et al 2012). However, research to date has neglected to provide a deeper understanding of how family-specific resources Baffect their propensity toward technological innovation and, more generally, their business behavior in technological innovation^ (De Massis et al 2013, p. 21).…”