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Heterogeneity of R&D in family firms

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  • Min, Byung-seong

Abstract

Drawing on the loss aversion framework, this research posits that the risk behaviors of family business group (FBG) affiliates are more positive than those of family standalones. Empirical results, using the case of Taiwan, confirm that the use of R&D by these affiliates is greater than that by family standalones. Further analysis, however, indicates that this greater positive effect of FBG affiliates than of family standalones is attenuated if the managerial power exercised by controlling shareholders is greater than the power driven by legal ownership. By demonstrating the heterogeneity of risk behaviors within family firms, our research adds value to the existing literature by focusing on the differences between family and nonfamily firms.

Suggested Citation

  • Min, Byung-seong, 2021. "Heterogeneity of R&D in family firms," Journal of Business Research, Elsevier, vol. 129(C), pages 88-95.
    • Handle: RePEc:eee:jbrese:v:129:y:2021:i:c:p:88-95
    DOI: 10.1016/j.jbusres.2021.02.040
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    More about this item

    Keywords

    R&D; Family business group affiliate; Family standalone; Loss aversion; Corporate governance; Emerging market;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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