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The Impact of Family Ownership, Management and Governance on Innovation

Matzler, K.; Veider V.; Hautz, J; Stadler, C.: The impact of family ownership, management and governance on innovation, In: Journal of Product Innovation Management Special Issue on "Management Research on Governance, Ownership and Innovation: Opening up the Agenda to Family Firms", Forthcoming

34 Pages Posted: 26 Mar 2014  

Kurt Matzler

University of Innsbruck

Viktoria Veider

University of Innsbruck

Julia Hautz

University of Innsbruck

Christian Stadler

University of Warwick - Warwick Business School

Date Written: March 25, 2014

Abstract

Previous research suggests that the distinctive nature of family firms, including both specific advantages and disadvantages related to their particular agency situation, influences innovation activities. Most studies, however, view family firms as homogeneous entities and thus neglect the heterogeneity of family firms when comparing them to non-family firms. One important factor of this firm heterogeneity is family influence in terms of ownership, management, and governance. A dataset of large German publicly traded firms between 2000 and 2009 is used to test how these three dimensions of family influence predict innovation input and output. The results show that family participation in management and governance has a negative impact on innovation input and a positive influence on innovation output. This suggests that family members are risk averse and reluctant to invest in innovation, but at the same time do so more effectively.

Keywords: Innovation input, innovation output, family influence, ownership, management, governance, R&D intensity, patents, citations

Suggested Citation

Matzler, Kurt and Veider, Viktoria and Hautz, Julia and Stadler, Christian, The Impact of Family Ownership, Management and Governance on Innovation (March 25, 2014). Matzler, K.; Veider V.; Hautz, J; Stadler, C.: The impact of family ownership, management and governance on innovation, In: Journal of Product Innovation Management Special Issue on "Management Research on Governance, Ownership and Innovation: Opening up the Agenda to Family Firms", Forthcoming . Available at SSRN: https://ssrn.com/abstract=2414351

Kurt Matzler

University of Innsbruck ( email )

Universitätsstraße 15
Innsbruck, Innsbruck 6020
Austria

Viktoria Veider

University of Innsbruck ( email )

Universitätsstraße 15
Innsbruck, Innsbruck 6020
Austria

Julia Hautz (Contact Author)

University of Innsbruck ( email )

Universitätsstraße 15
Innsbruck, Innsbruck 6020
Austria

Christian Stadler

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

HOME PAGE: http://www.wbs.ac.uk/about/person/christian-stadler/

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