Cross-Functional Management in Family Firms – A Stewardship Theory Perspective

Abstract

Prior research shows that cross-functional management impacts firm performance. Using stewardship theory, we hypothesize that family firms have a high proclivity to pursue cross-functional management. We test our hypothesis in the context of patent management and find that family firms pursue higher degrees of cross-functional patent management relative to non-family firms. However, the effect only exists when the family acts as both owner and manager.

Keywords: family firms, cross functional management, patent management, intellectual property, innovation, stewardship theory

JEL Classification: G32, M13, O32