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Growth and Performance: Business Model Innovation in Family Firms

Author

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  • 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
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    References listed on IDEAS

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