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Disentangling the effect of family involvement on innovativeness and risk taking: The role of decentralization

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  • Madanoglu, Melih
  • Altinay, Levent
  • Wang, Xuan (Lorna)

Abstract

This study investigates the effect of family involvement on family firms' entrepreneurial behavior through decentralization. Borrowing from agency theory and using a sample of 145 entrepreneurs, this study contributes to entrepreneurship literature by providing a fine-grained explanation about how a decision-making mechanism such as decentralization influences the relationship between family involvement and innovativeness, and risk taking of family firms. Furthermore, this study demonstrates the importance of considering heterogeneity of family firms and the focal role of decentralization in spurring up firm-level entrepreneurship.

Suggested Citation

  • Madanoglu, Melih & Altinay, Levent & Wang, Xuan (Lorna), 2016. "Disentangling the effect of family involvement on innovativeness and risk taking: The role of decentralization," Journal of Business Research, Elsevier, vol. 69(5), pages 1796-1800.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:5:p:1796-1800
    DOI: 10.1016/j.jbusres.2015.10.058
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    References listed on IDEAS

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    Cited by:

    1. José Moleiro Martins & Muhammad Farrukh Shahzad & Shuo Xu, 2023. "Factors influencing entrepreneurial intention to initiate new ventures: evidence from university students," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-27, December.
    2. Li, Qing & Hu, Dezhuang & Li, Tang, 2022. "The innovation of family firms in China: New evidence from the China employer-employee survey," China Economic Review, Elsevier, vol. 72(C).
    3. Sherlock, Chelsea & Dibrell, Clay & Memili, Esra, 2023. "The impact of family commitment on firm innovativeness: The mediating role of resource stocks," Journal of Family Business Strategy, Elsevier, vol. 14(3).
    4. Jie Yang & Jieqiong Ma & Hongxin Zhao & Jim Cater & Mark Arnold, 2019. "Family involvement, environmental turbulence, and R&D investment: evidence from Listed Chinese SMEs," Small Business Economics, Springer, vol. 53(4), pages 1017-1032, December.
    5. Gema García-Piqueres & Ana-M. Serrano-Bedia & Marta Pérez-Pérez, 2019. "Knowledge Management Practices and Innovation Outcomes: The Moderating Role of Risk-Taking and Proactiveness," Administrative Sciences, MDPI, vol. 9(4), pages 1-22, September.
    6. Nurulhasanah Abdul Rahman, 2020. "Entrepreneurial Orientation, Innovation and SME Performance: A Study of SMEs in Malaysia using PLS-SEM," GATR Journals gjbssr558, Global Academy of Training and Research (GATR) Enterprise.
    7. Pittino, Daniel & Barroso Martínez, Ascensión & Chirico, Francesco & Sanguino Galván, Ramón, 2018. "Psychological ownership, knowledge sharing and entrepreneurial orientation in family firms: The moderating role of governance heterogeneity," Journal of Business Research, Elsevier, vol. 84(C), pages 312-326.
    8. Anna Maria Bornhausen & Torsten Wulf, 2024. "Digital innovation in family firms: The roles of non-family managers and transgenerational control intentions," Small Business Economics, Springer, vol. 62(4), pages 1429-1448, April.
    9. D’Allura, Giorgia Maria, 2019. "The leading role of the top management team in understanding family firms: Past research and future directions," Journal of Family Business Strategy, Elsevier, vol. 10(2), pages 87-104.
    10. Cox, Kevin C. & Lortie, Jason & Marshall, David R. & Kidwell, Roland E., 2022. "Beyond the balance Sheet: The effects of family influence on social performance," Journal of Business Research, Elsevier, vol. 143(C), pages 318-330.

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