Doing More with Less: Innovation Input and Output in Family Firms

摘要: Family firms are often portrayed as an important yet conservative form of organization that is reluctant to invest in innovation; however, simultaneously, evidence has shown family flourishing and fact constitute many the world’s most innovative firms. Our study contributes disentangling this puzzling effect. We argue firms—owing family’s high level control over firm, wealth concentration, importance nonfinancial goals—invest less innovation but have increased conversion rate input into output and, ultimately, a higher than nonfamily Empirical from meta-analysis based on 108 primary studies 42 countries supports our hypotheses. further empirically show observed effects even stronger when CEO firm later-generation member. However, firm’s founder, contrary initial expectations, lower other firm–innovation input–output relationships depend country-level factors; namely, minority shareholder protection education workforce country.