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
Date Written: March 25, 2014
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: Suggested Citation