The impact of family ownership, management, and governance on innovation

Journal of Product Innovation Management

Volumn 32, Issue 3, 2015, Pages 319-333

  Matzler, Kurt ^a   Veider, Viktoria ^a   Hautz, Julia ^a   Stadler, Christian ^a  

^a INNSBRUCK UNIVERSITY SCHOOL OF MANAGEMENT   (Austria)

Author keywords

[No Author keywords available]

Indexed keywords

MANAGEMENT;

DATA SET; FAMILY FIRMS; FIRM HETEROGENEITY; INNOVATION ACTIVITY; INPUT AND OUTPUTS; RISK AVERSE; THREE DIMENSIONS;

STATISTICAL TESTS;

EID: 84926409954     PISSN: 07376782     EISSN: 15405885     Source Type: Journal    
DOI: 10.1111/jpim.12202     Document Type: Article

References (100)

1. Adams, R., J. Bessant, and R. Phelps. 2006. Innovation management measurement: A review. International Journal of Management Reviews 8 (1): 21-47.
2. Anderson, R. C., A. Duru, and D. M. Reeb. 2012. Investment policy in family controlled firms. Journal of Banking & Finance 36 (6): 1744-58.
3. Anderson, R. C., and D. M. Reeb. 2003. Founding-family ownership, corporate diversification, and firm leverage. The Journal of Law and Economics 46 (2): 653-84.
4. Anderson, R. C., and D. M. Reeb. 2004. Board composition: Balancing family influence in S&P 500 firms. Administrative Science Quarterly 49 (2): 209-37.
5. Astrachan, J. H., and P. Jaskiewicz. 2008. Emotional returns and emotional costs in privately held family businesses: Advancing traditional business valuation. Family Business Review 21 (2): 139-49.
6. Barker, V. L., and G. C. Mueller. 2002. CEO characteristics and firm R&D spending. Management Science 48 (6): 782-801.
7. Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of Management 17 (1): 99-120.
8. Baum, C. F., M. E. Schaffer, and S. Stillman. 2007. Enhanced routines for instrumental variables/GMM estimation and testing. Stata Journal 7 (4): 465-506.
9. Baysinger, B. D., R. D. Kosnik, and T. A. Turk. 1991. Effects of board and ownership structure on corporate R&D strategy. Academy of Management Journal 34 (1): 205-14.
10. Beck, L., W. Janssens, M. Debruyne, and T. Lommelen. 2011. A study of the relationship between generation, market orientation, and innovation in family firms. Family Business Review 24 (3): 252-72.
11. Bergfeld, M. M. H., and F. M. Weber. 2011. Dynasties of innovation: Highly performing German family firms and the owners' role for innovation. International Journal of Entrepreneurship and Innovation Management 13 (1): 80-94.
12. Birley, S. 2001. Owner-manager attitudes to family and business issues: A 16 country study. Entrepreneurship Theory and Practice 26 (2): 63-76.
13. Block, J. 2009. Long-term orientation of family firms: An investigation of R&D investments, downsizing practices, and executive pay. Wiesbaden, Germany: Gabler.
14. Block, J. H. 2012. R&D investments in family and founder firms: An agency perspective. Journal of Business Venturing 27 (2): 248-65.
15. Bolli, T., and M. Wörter. 2013. Technological diversification and innovation performance. KOF Working Papers 336. Zurich: KOF.
16. Braun, M., and A. Sharma. 2007. Should the CEO also be chair of the board? An empirical examination of family-controlled public firms. Family Business Review 20 (2): 111-26.
17. Cabrera-Suárez, K., P. de Saá-Pérez, and D. García-Almeida. 2001. The succession process from a resource- and knowledge-based view of the family firm. Family Business Review 14 (1): 37-48.
18. Carney, M. 2005. Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship Theory and Practice 29 (3): 249-65.
19. Chen, H.-L., and W.-T. Hsu. 2009. Family ownership, board independence, and R&D investment. Family Business Review 22 (4): 347-62.
20. Chin, C.-L., Y.-J. Chen, G. Kleinman, and P. Lee. 2009. Corporate ownership structure and innovation: Evidence from Taiwan's electronics industry. Journal of Accounting, Auditing & Finance 24 (1): 145-75.
21. Chrisman, J. J., and P. C. Patel. 2012. Variations in R&D investments of family and non-family firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal 55 (4): 976-97.
22. Chrisman, J. J., J. H. Chua, and R. A. Litz. 2004. Comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice 28 (4): 335-54.
23. Chua, J. H., J. J. Chrisman, and P. Sharma. 1999. Defining the family-owned firm by behavior. Entrepreneurship Theory and Practice 23 (4): 19-39.
24. Chua, J. H., J. J. Chrisman, and L. P. Steier. 2003. Extending the theoretical horizons of family business research. Entrepreneurship Theory and Practice 27 (4): 331-38.
25. Classen, N., A. Van Gils, Y. Bammens, and M. Carree. 2012. Accessing resources from innovation partners: The search breadth of family SMEs. Journal of Small Business Management 50 (2): 191-215.
26. Classen, N., M. Carree, A. Van Gils, and B. Peters. 2014. Innovation in family and non-family SMEs: An exploratory analysis. Small Business Economics 42 (3): 595-609.
27. Corbetta, G., and C. A. Salvato. 2004. The board of directors in family firms: One size fits all? Family Business Review 17 (2): 119-34.
28. Cragg, J. G., and S. G. Donald. 1993. Testing identifiability and specification in instrumental variables models. Econometric Theory 9: 222-40.
29. Craig, J., and C. Dibrell. 2006. The natural environment, innovation, and firm performance: A comparative study. Family Business Review 19 (4): 275-88.
30. Czarnitzki, D., and K. Kraft. 2009. Capital control, debt financing and innovative activity. Journal of Economic Behavior & Organization 71 (2): 372-83.
31. David, P., J. P. O'Brien, and T. Yoshikawa. 2008. The implications of debt heterogeneity for R&D investment and firm performance. Academy of Management Journal 51 (1): 165-81.
32. De Massis, A., F. Frattini, and U. Lichtenthaler. 2012. Research on technological innovation in family firms: Present debates and future directions. Family Business Review 26 (1): 10-31.
33. De Massis, A., F. Frattini, E. Pizzurno, and L. Cassia. 2013. Product innovation in family vs. non-family firms: An exploratory analysis. Journal of Small Business Management, doi:10.1111/jsbm.12068.
34. De Massis, A., J. Kotlar, J. H. Chua, and J. J. Chrisman. 2014. Ability and willingness as sufficiency conditions for family-oriented particularistic behavior: Implications for theory and empirical studies. Journal of Small Business Management 52 (2): 344-64.
35. Deutsche Börse, A. G. 2010a. The CDAX index. Available at http://daxindices.com/EN/index.aspx?pageID=25&ISIN=DE0008469800
36. Deutsche Börse, A. G. 2010b. Market structure. Available at http://deutsche-boerse.com/dbag/dispatch/en/kir/gdb-navigation/trading/10-trading-platforms/850-market-structure
37. Donckels, R., and J. Lambrecht. 1999. The re-emergence of family-based enterprises in east central Europe: What can be learned from family business research in the Western world? Family Business Review 12 (2): 171-88.
38. Dyer, W. G., Jr. 2006. Examining the "family effect" on firm performance. Family Business Review 19 (4): 253-73.
39. Etzioni, A. 1961. A comparative analysis of complex organizations. New York: Free Press.
40. Fama, E. F., and M. Jensen. 1983. Separation of ownership and control. The Journal of Law and Economics 26 (2): 301-25.
41. Filbeck, G., and S. Lee. 2000. Financial management techniques in family businesses. Family Business Review 13 (3): 201-16.
42. Gersick, K. E. 1997. Generation to generation. Life cycles of the family business. Boston, MA: Harvard Business School Press.
43. Gómez-Mejía, L. R., K. Haynes-Takács, M. Núñez-Nickel, K. J. L. Jacobson, and J. Moyano-Fuentes. 2007. Socioemotional wealth and business risk in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly 52 (1): 106-37.
44. Gómez-Mejía, L. R., M. Nuñez-Nickel, and I. Gutierrez. 2001. The role of family ties in agency contracts. Academy of Management Journal 44 (1): 81-95.
45. Gómez-Mejía, L. R., M. Makri, and M. L. Kintana. 2010. Diversification decisions in family-controlled firms. Journal of Management Studies 47 (2): 223-52.
46. Greene, W. H. 2008. Econometric analysis. Upper Saddle River, NJ: Prentice Hall.
47. Griliches, Z. 1998. R&D and productivity: The econometric evidence. Chicago: The University of Chicago Press.
48. Habbershon, T. G., and M. L. Williams. 1999. A resource-based framework for assessing the strategic advantages of family firms. Family Business Review 12 (1): 1-25.
49. Hagedoorn, J., and M. Cloodt. 2003. Measuring innovative performance: Is there an advantage in using multiple indicators? Research Policy 32 (8): 1365-79.
50. Hall, B. H., A. B. Jaffe, and M. Trajtenberg. 2000. Market value and patent citations: A first look. NBER Working Paper No. 7741. Cambridge, MA: National Bureau of Economic Research.
51. Hall, B. H., A. Jaffe, and M. Trajtenberg. 2005. Market value and patent citations. The Rand Journal of Economics 36 (1): 16-38.
52. Hausman, J. A. 1987. Specification tests in econometrics. Econometrica: Journal of the Econometric Society 46 (6): 1251-71.
53. Hautz, J., M. C. J. Mayer, and C. Stadler. 2013. Ownership identity and concentration:Astudy of their joint impact on corporate diversification. British Journal of Management 24: 102-26.
54. Heckman, J. 1979. Sample selection bias as a specification error. Econometrica: Journal of the Econometric Society 47: 153-61.
55. Hillman, A. J., and T. Dalziel. 2003. Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management Review 28 (3): 383-96.
56. Jaffe, A., M. Trajtenberg, and R. Henderson. 1993. Geographic localization of knowledge spillovers as evidenced by patent citations. The Quarterly Journal of Economics 108 (3): 577-98.
57. Jaffe, A. B., and M. Trajtenberg. 2005. Patents, citations, and innovations: A window on the knowledge economy. Boston, MA: MIT Press.
58. Jaskiewicz, P.V., M. Gonzáles, S. Menéndez, and D. Schiereck. 2005. Long-run IPO performance analysis of German and Spanish family-owned businesses. Family Business Review 18 (3): 179-202.
59. Jensen, M. C., and W. H. Meckling. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3 (4): 305-60.
60. Johannisson, B., and M. Huse. 2000. Recruiting outside board members in the small family business: An ideological challenge. Entrepreneurship and Regional Development 12 (4): 353-78.
61. Kellermanns, F., K. Eddleston, R. Sarathy, and F. Murphy. 2012. Innovativeness in family firms: A family influence perspective. Small Business Economics 38 (1): 85-101.
62. Kleibergen, F., and R. Paap. 2006. Generalized reduced rank tests using the singular value decomposition. Journal of Econometrics 133 (1): 97-126.
63. Klein, S. B. 2000. Family businesses in Germany: Significance and structure. Family Business Review 13 (3): 157-82.
64. Kor, Y. Y. 2006. Direct interaction effects of top management team and board compositions on R&D investment strategy. Strategic Management Journal 27 (11): 1081-99.
65. Kotlar, J., A. De Massis, F. Frattini, M. Bianchi, and H. Fang. 2013. Technology acquisition in family and non-family firms: A longitudinal analysis of Spanish manufacturing firms. Journal of Product Innovation Management 37 (6): 1263-88.
66. König, A., N. Kammerlander, and A. Enders. 2013. The family innovator's dilemma: How family influence affects the adoption of discontinous technologies by incumbent firms. Academy of Management Review 38 (3): 418-41.
67. La Porta, R., F. Lopez-de-Silanes, and A. Shleifer. 1999. Corporate ownership around the world. Journal of Finance 54 (2): 471-517.
68. Le Breton-Miller, I., and D. Miller. 2006. Why do some family businesses out-compete? Governance, long-term orientations, and sustainable capability. Entrepreneurship Theory and Practice 30 (6): 731-46.
69. Le Breton-Miller, I., D. Miller, and R. H. Lester. 2011. Stewardship or agency? A social embeddedness reconciliation. Organization Science 22 (3): 704-21.
70. Lee, P. M., and H. M. O'Neill. 2003. Ownership structures and R&D investments of US and Japanese firms: Agency and stewardship perspectives. Academy of Management Journal 46 (2): 212-25.
71. Leten, B., R. Belderbos, and B. Van Looy. 2007. Technological diversification, coherence, and performance of firms. Journal of Product Innovation Management 24 (6): 567-79.
72. Liang, Q., X. Li, X. Yang, D. Lin, and D. Zheng. 2013. How does family involvement affect innovation in China? Asia Pacific Journal of Management 30 (3): 677-95.
73. Llach, J., and M. Nordqvist. 2010. Innovation in family and non-family businesses: A resource perspective. International Journal of Entrepreneurial Venturing 2 (3): 381-99.
74. López-Gracia, J., and S. Sánchez-Andújar. 2007. Financial structure of the family business: Evidence from a group of small Spanish firms. Family Business Review 20 (4): 269-87.
75. Lubatkin, M. H., W. S. Schulze, Y. Ling, and R. N. Dino. 2005. The effects of parental altruism on the governance of family managed firms. Journal of Organizational Behavior 26 (3): 313-30.
76. Manso, G. 2011. Motivating innovation. Journal of Finance 66 (5): 1823-60.
77. Maury, B. 2006. Family ownership and firm performance: Empirical evidence from western European corporations. Journal of Corporate Finance 12 (2): 321-41.
78. Miller, D., and I. Le Breton-Miller. 2006. Family governance and firm performance: Agency, stewardship, and capabilities. Family Business Review 19 (1): 73-87.
79. Miller, D., I. Le Breton-Miller, R. H. Lester, and A. A. Cannell, Jr. 2007. Are family firms really superior performers? Journal of Corporate Finance 13 (5): 829-58.
80. Mintzberg, H. 1979. Structuring of organizations. New York: Prentice Hall.
81. Morck, R., and B. Yeung. 2003. Agency problems in large family business groups. Entrepreneurship Theory and Practice 27 (4): 367-82.
82. Munari, F., R. Oriani, and M. Sobrero. 2010. The effect of owner identity and external governance systems on R&D investments: A study of western European firms. Research Policy 39 (8): 1093-104.
83. Muñoz-Bullón, F., and M. J. Sanchez-Bueno. 2011. The impact of family involvement on the R&D intensity of publicly traded firms. Family Business Review 24 (1): 62-70.
84. Naldi, L., M. Nordqvist, K. Sjöberg, and J. Wiklund. 2007. Entrepreneurial orientation, risk taking, and performance in family firms. Family Business Review 20 (1): 33-47.
85. Neter, J., W. Wasserman, and M. H. Kutner. 1985. Applied linear statistical models. Homewood, IL: Richard D. Irwin.
86. O'Brien, J. P. 2003. The capital structure implications of pursuing a strategy of innovation. Strategic Management Journal 24 (5): 415-31.
87. OECD. 2009. STAN indicators database vol 2008 release 01 Source OECD STAN Structural Analysis Database.
88. Patel, P. C., and J. J. Chrisman. 2013. Risk abatement as a strategy for R&D investments in family firms. Strategic Management Journal, doi:10.1002/smj.2119.
89. Rosenbusch, N., J. Brinckmann, and A. Bausch. 2011. Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing 26 (4): 441-57.
90. Sargan, J. 1988. Testing for misspecification after estimation using instrumental variables. In Contributions to econometrics, ed. J. D. Sargan and E. Maasoumi, 213-35. Cambridge: Cambridge University Press.
91. Schulze, W. S., M. H. Lubatkin, R. N. Dino, and A. K. Buchholtz. 2001. Agency relationships in family firms: Theory and evidence. Organization Science 12 (2): 99-116.
92. Schulze, W. S., M. H. Lubatkin, R. N. Dino, and N. Richard. 2002. Altruism, agency, and the competitiveness of family firms. Management Decision Economics 23 (4-5): 247-69.
93. Sharma, P. 2004. An overview of the field of family business studies: Current status and directions for the future. Family Business Review 17 (1): 1-36.
94. Sirmon, D. G., and M. A. Hitt. 2003. Managing resources: Linking unique resources, management, and wealth creation in family firms. Entrepreneurship Theory and Practice 27 (4): 339-58.
95. Spithoven, A., D. Frantzen, and B. Clarysse. 2010. Heterogeneous firm-level effects of knowledge exchanges on product innovation: Differences between dynamic and lagging product innovators. Journal of Product Innovation Management 27 (3): 362-81.
96. Stock, J. H., J. H. Wright, and M. Yogo. 2002. A survey of weak instruments and weak identification in generalized method of moments. Journal of Business & Economic Statistics 20 (4): 518-29.
97. Van de Vrande, V., W. Vanhaverbeke, and G. Duysters. 2011. Technology in-sourcing and the creation of pioneering technologies. Journal of Product Innovation Management 28 (6): 974-87.
98. Villalonga, B., and R. Amit. 2006. How do family ownership, control and management affect firm value? Journal of Financial Economics 80 (2): 385-417.
99. Zahra, S. A. 2005. Entrepreneurial risk taking in family firms. Family Business Review 18 (1): 23-40.
100. Zahra, S. A., D. O. Neubaum, and B. Larrañeta. 2007. Knowledge sharing and technological capabilities: The moderating role of family involvement. Journal of Business Research 60 (10): 1070-79.