Innovation in Family Business: Current Trends and Future Research Directions
Antonio Padilla Meléndez (
[email protected]) Julio Diéguez Soto (
[email protected]) Aurora Garrido Moreno (
[email protected]) Universidad de Málaga
Innovation in Family Business: Current Trends and Future Research Directions
Antonio Padilla Meléndez (
[email protected]) Julio Diéguez Soto (
[email protected]) Aurora Garrido Moreno (
[email protected]) Universidad de Málaga
Types of firms
Agency Agency Effect on Problem Problem performance(*) I II
Group I Lone founder
No
No
+
Co-preneurial FB
Low
Low
+
Dispersed Non-Professional FB
Low
Low
+
Low
High
?
Dispersed Professional FB
High
Low
?
Dispersed Non-Family Business
High
Low
?
Concentrated Non-Family Business
High
High
-
Concentrated Professional FBs
High
High
-
Group II Solely Family Run FB Group III
Group IV
Table 4 Results of difference of Means Tests excluding lone founder from the analysis (2007) Variables /Tests
Family owned –non family owned firms
ConcentratedDispersed FBs
Family CEO firms and nonfamily owned firms
Family and nonfamily CEO firms
LF LF LF LF LF LF LF LF included excluded included excluded included excluded included excluded
3 4
Log AGE Log SIZE DEBT ROA1
5 6 7
1 2
≠
=
≠
≠
≠
=
≠
≠
≠
≠
≠
≠
≠
=
≠
≠
≠ ??
= =
≠ =
?? ??
≠ ≠
≠ =
?? ≠
= ??
ROA2
≠
=
=
??
≠
=
≠
??
ROA3 ROE
≠ ≠
= =
= =
= =
≠ ≠
= =
≠ ≠
≠ ??
(*) ≠ means significant differences at 1%***, 5%** or 10% *level; = means there are not significant differences; ?? means we have some doubts about whether exist or not differences. (*) The summary statistics for year 2006 are not shown because they are very similar.
Table 5 Difference of Means Tests between lone founder firms and Family owned firms (2007) Lone Founder Sig Family owned Sig(t Conclusi (Mannon (N=865) Firms (N=923) student) Whitney) Mean
Standard Deviation
1 Log AGE 2.49 0.67 2 Log SIZE 7.79 1.66 3 DEBT 0.70 0.21 4 ROA1 0.05 0.05 5 ROA2 0.07 0.07 6 ROA3 0.11 0.08 7 ROE 0.19 0.20 (*) ≠ means significant differences.
Mean
Standard Deviation
2.85 8.88 0.65 0.04 0.06 0.10 0.13
0.61 1.90 0.21 0.04 0.06 0.07 0.16
0.000 0.000 0.000 0.000 0.002 0.003 0.000
0.000 0.000 0.000 0.001 0.004 0.028 0.000
≠ ≠ ≠ ≠ ≠ ≠ ≠
(*) The summary statistics for year 2006 are not shown because they are very similar
Table 6 Descriptive Statistics (2007) Type/Variables
Total
%
Log AGE
Log SIZE
DEBT
ROA1
ROA2
ROA3
ROE1
Lone Founder
931
26.41
2.47
7.73
0.71
0.06
0.07
0.11
0.19
Co-preneurial FB
145
4.11
2.67
8.11
0.69
0.05
0.06
0.10
0.15
Solely Family Run FB
675
19.15
2.84
8.84
0,66
0.05
0.07
0.10
0.14
Dispersed nonprofessional FB
29
0.82
3.17
10.13
0.58
0.07
0.09
0.12
0.15
Concentrated Professional FB
108
3.06
2.96
9.57
0.66
0.04
0.05
0.08
0.10
Dispersed professional FB
2
0.06
2.90
9.70
0.59
0.07
0.08
0.20
0.17
1,635
46.38
2.82
9.83
0.66
0.05
0.06
0.10
0.13
Total 3,525 100.00 2.73 9.01 0.68 0.05 0,06 (*) The summary statistics for year 2006 are not shown because they are very similar.
0.10
0.15
Non family-firms
Table 8 Performance and control variables: varimax rotated components Varimax rotated components 2007 Varimax rotated components 2006
Variables log AGE log SIZE DEBT ROA1 ROA3
1 2 -0.087 0.432 -0.059 0.978 -0.171 -0.001 0.827 -0.018 0.835 -0.118
3 -0.523 -0.051 0.944 -0.127 -0.153
1 -0.087 0.052 -0.244 0.852 0.863
2 0.432 0.980 0.020 0.011 -0.079
3 -0.523 -0.028 0.924 -0.026 -0.110
Research motivation (Why?)
Innovation in Family Business: Current Trends and Future Research Directions
Research motivation (Why?) § Innovation important for Family Business (FB). Very
scarce attention to that topic in the FB literature.
§ Many calls have been made for further research in
this area.
Not conclusive evidence/theory about it relationships. §
§ Aims of this paper: § To identify, summarize and organize the main research streams in the literature about innovation and FB. § To propose future integrated research lines. Innovation in Family Business: Current Trends and Future Research Directions
Theoretical Background. Concepts § Innovation: Doing things differently / new process or/and new outcome. § Innovativeness: Firm’s tendency to engage in and support new ideas, novelty, experimentation, and creative processes that may result in new products, services, or technological processes” (Lumpkin & Dess, 1996). § Family Business: A firm where is probed the family involvement through ownership, governance or management.
Innovation in Family Business: Current Trends and Future Research Directions
Methodology (How?) Extensive literature review (til December 2011) with three parts: 1. Data collection 2. Data analysis 3. Synthesis
Innovation in Family Business: Current Trends and Future Research Directions
Results Three different dimensions were found: 1. Family Involvement affecting innovation 2. Entrepreneurial Orientation in Family Business 3. Factors affecting innovation in Family Business
Innovation in Family Business: Current Trends and Future Research Directions
Contributions § There main research lines in the literature: 1. Family involvement 2. EO 3. Factors affecting innovation
§ Four main future research lines have being proposed: 1. FB specific characteristics influencing innovation 2. Linkages between innovation in FBs and variables such firm performance and growth 3. Measuring innovation properly 4. Development of green innovations
Innovation in Family Business: Current Trends and Future Research Directions
Limitations 1. Some relevant papers may exist and they have not been included in the analysis. 2. The definition of FB remains unclear, consequently the conclusions reached might be affected by the limitation regarding this concept.
Innovation in Family Business: Current Trends and Future Research Directions