IDEAS home Printed from https://ideas.repec.org/a/gam/jbusin/v4y2024i2p14-224d1410908.html
   My bibliography  Save this article

Growth and Performance: Business Model Innovation in Family Firms

Author

Listed:
  • Angel-Luis Meroño-Cerdan

    (Department of Management and Finance, Faculty of Economic and Business, University of Murcia, 30100 Murcia, Spain)

  • Francisco-Jose Molina-Castillo

    (Department of Management and Finance, Faculty of Economic and Business, University of Murcia, 30100 Murcia, Spain)

  • Carolina Lopez-Nicolas

    (Department of Management and Finance, Faculty of Economic and Business, University of Murcia, 30100 Murcia, Spain)

  • Jesus Ruiz-Nicolas

    (Department of Management and Finance, Faculty of Economic and Business, University of Murcia, 30100 Murcia, Spain)

Abstract

A business model, defined as the underlying logic of a company, is not permanent over time. Instead, companies need to introduce innovations in the business model to be competitive in the market. This is even more critical for family firms which are continuously looking for a way to obtain sustainable growth, together with satisfactory performance. The objective of this research is to analyze the impact that business model innovation activities have in the short/long-term growth and performance of family firms. This study was obtained from panel data made up of 112 valid responses from family firms involved in business model innovation. A composite model approach has been used for data analysis. The significant components of BMI that lead to greater growth and performance are identified, the distinction between long-term and short-term effects of BMI on those outcomes is made, and BMI is proven as an authoritative source of competitive advantage and growth in family firms. Those aspects are valuable insights for researchers and managers with regards to which innovation propositions help sustain growth and performance over time.

Suggested Citation

  • Angel-Luis Meroño-Cerdan & Francisco-Jose Molina-Castillo & Carolina Lopez-Nicolas & Jesus Ruiz-Nicolas, 2024. "Growth and Performance: Business Model Innovation in Family Firms," Businesses, MDPI, vol. 4(2), pages 1-14, June.
    • Handle: RePEc:gam:jbusin:v:4:y:2024:i:2:p:14-224:d:1410908
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-7116/4/2/14/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-7116/4/2/14/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patricio Duran & Nadine Kammerlander & Marc van Essen & Thomas Zellweger, 2016. "Doing More with Less : Innovation Input and Output in Family Firms," Post-Print hal-02312103, HAL.
    2. Patricio Duran & Nadine Kammerlander & Marc van Essen & Thomas Zellweger, 2016. "Doing More with Less : Innovation Input and Output in Family Firms," Post-Print hal-02276703, HAL.
    3. Oscar Domenichelli & Giulia Bettin, 2021. "Generational Socioemotional Wealth and Debt Maturity: Evidence from Private Family Firms of GIPSI Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(12), pages 1-67, December.
    4. Michael M. Gielnik & Hannes Zacher & Antje Schmitt, 2017. "How Small Business Managers’ Age and Focus on Opportunities Affect Business Growth: A Mediated Moderation Growth Model," Journal of Small Business Management, Taylor & Francis Journals, vol. 55(3), pages 460-483, July.
    5. Tse, Alan C. B. & Sin, Leo Y. M. & Yau, Oliver H. M. & Lee, Jenny S. Y. & Chow, Raymond, 2003. "Market orientation and business performance in a Chinese business environment," Journal of Business Research, Elsevier, vol. 56(3), pages 227-239, March.
    6. Daniel Pittino & Francesca Visintin, 2009. "INNOVATION AND STRATEGIC TYPES OF FAMILY SMEs: A TEST AND EXTENSION OF MILES AND SNOW'S CONFIGURATIONAL MODEL," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 257-295.
    7. Ana M. Moreno & José C. Casillas, 2007. "High-growth SMEs versus non-high-growth SMEs: a discriminant analysis," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(1), pages 69-88, January.
    8. Christopher F Baum & Hans Lööf & Pardis Nabavi, 2019. "Innovation strategies, external knowledge and productivity growth," Industry and Innovation, Taylor & Francis Journals, vol. 26(3), pages 348-367, March.
    9. Molina-Castillo, Francisco-Jose & Lopez-Nicolas, Carolina & Soto-Acosta, Pedro, 2012. "Interaction effects of media and message on perceived complexity, risk and trust of innovative products," European Management Journal, Elsevier, vol. 30(6), pages 577-587.
    10. Brettel, Malte & Strese, Steffen & Flatten, Tessa C., 2012. "Improving the performance of business models with relationship marketing efforts – An entrepreneurial perspective," European Management Journal, Elsevier, vol. 30(2), pages 85-98.
    11. Joern Block & Christopher Hansen & Holger Steinmetz, 2023. "Are Family Firms Doing More Innovation Output With Less Innovation Input? A Replication and Extension," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1496-1520, July.
    12. Hamelink, Martijn & Opdenakker, Raymond, 2019. "How business model innovation affects firm performance in the energy storage market," Renewable Energy, Elsevier, vol. 131(C), pages 120-127.
    13. Carlos Benavides-Velasco & Cristina Quintana-García & Vanesa Guzmán-Parra, 2013. "Trends in family business research," Small Business Economics, Springer, vol. 40(1), pages 41-57, January.
    14. Thomas Brenner & Antje Schimke, 2015. "Growth Development Paths of Firms—A Study of Smaller Businesses," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(2), pages 539-557, April.
    15. Helen Pushkarskaya & Maria Marshall, 2010. "Family Structure, Policy Shocks, and Family Business Adjustment Choices," Journal of Family and Economic Issues, Springer, vol. 31(4), pages 414-426, December.
    16. Patrick Spieth & Sabrina Schneider, 2016. "Business model innovativeness: designing a formative measure for business model innovation," Journal of Business Economics, Springer, vol. 86(6), pages 671-696, August.
    17. Barringer, Bruce R. & Jones, Foard F. & Neubaum, Donald O., 2005. "A quantitative content analysis of the characteristics of rapid-growth firms and their founders," Journal of Business Venturing, Elsevier, vol. 20(5), pages 663-687, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elena Freisinger & Sven Heidenreich & Christian Landau & Patrick Spieth, 2021. "Business Model Innovation Through the Lens of Time: An Empirical Study of Performance Implications Across Venture Life Cycles," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 339-380, December.
    2. Carmen Barroso-Castro & Marta Domínguez de la Concha Castañeda & Mª de los Ángeles Rodríguez Serrano, 2022. "Listed SMEs and innovation: the role of founding board members," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 901-934, June.
    3. Moreno-Menéndez, Ana M. & Casillas, José C., 2021. "How do family businesses grow? Differences in growth patterns between family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    4. Fries, Alexander & Kammerlander, Nadine & Leitterstorf, Max, 2021. "Leadership Styles and Leadership Behaviors in Family Firms: A Systematic Literature Review," Journal of Family Business Strategy, Elsevier, vol. 12(1).
    5. Abel Duarte Alonso & Seng Kok & Michelle O’Shea, 2018. "Family Businesses and Adaptation: A Dynamic Capabilities Approach," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 683-698, December.
    6. María del Pilar Casado-Belmonte & María de las Mercedes Capobianco-Uriarte & Rubén Martínez-Alonso & María J. Martínez-Romero, 2021. "Delineating the Path of Family Firm Innovation: Mapping the Scientific Structure," Review of Managerial Science, Springer, vol. 15(8), pages 2455-2499, November.
    7. Sabela Siaba & Berta Rivera, 2024. "The evolution of the field of family business research over a decade (2012–2022)," Small Business Economics, Springer, vol. 63(3), pages 1089-1115, October.
    8. Baday Yıldız, Ezgi & Dabić, Marina & Stojčić, Nebojša & Dindaroğlu, Yeşim & Temel, Serdal, 2021. "Scrutinizing innovation performance of family firms in efficiency-driven environment," Journal of Business Research, Elsevier, vol. 129(C), pages 260-270.
    9. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    10. Tommaso Pucci & Mara Brumana & Tommaso Minola & Lorenzo Zanni, 2020. "Social capital and innovation in a life science cluster: the role of proximity and family involvement," The Journal of Technology Transfer, Springer, vol. 45(1), pages 205-227, February.
    11. Chih-Yang Tseng, 2020. "Family firms and long-term orientation of SG&A expenditures," Review of Quantitative Finance and Accounting, Springer, vol. 55(4), pages 1181-1206, November.
    12. Mike W. Peng & Wei Sun & Cristina Vlas & Alessandro Minichilli & Guido Corbetta, 2018. "An Institution-Based View of Large Family Firms: A Recap and Overview," Entrepreneurship Theory and Practice, , vol. 42(2), pages 187-205, March.
    13. Zhang, Yameng & Sharma, Piyush & Xu, Yekun & Zhan, Wu, 2021. "Challenges in internationalization of R&D teams: Impact of foreign technocrats in top management teams on firm innovations," Journal of Business Research, Elsevier, vol. 128(C), pages 728-741.
    14. Francesco Aiello & Paola Cardamone & Lidia Mannarino & Valeria Pupo, 2021. "Green patenting and corporate social responsibility: Does family involvement in business matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1386-1396, July.
    15. Anja Ströbele & Patrick Brecht & Lisa Kurz & Carsten H. Hahn, 2023. "Conceptualization of a Cooperative Company Builder for Systematic Transfer of University Research and Innovation in the German Mittelstand," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 9(4), pages 401-428, October.
    16. Montserrat Manzaneque & Alfonso A. Rojo-Ramírez & Julio Diéguez-Soto & Maria J. Martínez-Romero, 2020. "How negative aspiration performance gaps affect innovation efficiency," Small Business Economics, Springer, vol. 54(1), pages 209-233, January.
    17. Davila, Jessenia & Duran, Patricio & Gómez-Mejía, Luis & Sanchez-Bueno, Maria J., 2023. "Socioemotional wealth and family firm performance: A meta-analytic integration," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    18. Gottschalck, Nicole & Guenther, Christina & Kellermanns, Franz, 2020. "For whom are family-owned firms good employers? An exploratory study of the turnover intentions of blue- and white-collar workers in family-owned and non-family-owned firms," Journal of Family Business Strategy, Elsevier, vol. 11(3).
    19. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    20. Azzeddine Allioui & Badr Habba & Taib Berrada El Azizi, 2024. "Harmony Unleashed: Crafting a Sustainable Future through Entrepreneurial Mastery in Moroccan Family Firms," Scientia Moralitas Journal, Scientia Moralitas, Research Institute, vol. 9(1), pages 33-47, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jbusin:v:4:y:2024:i:2:p:14-224:d:1410908. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.