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Is innovativeness always beneficial in family SMEs? The moderating role of generational stage

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  • Jonathan Bauweraerts
  • Olivier Colot

Abstract

Many studies suggest that innovativeness is positively related to performance in small- and medium-sized family enterprises (family SMEs); however, empirical and theoretical controversies surround this problematic. This study proposes and tests an integrative framework connecting two explanations for these inconsistencies: the innovativeness-performance relationship is curvilinear, and the performance implications of innovativeness are contingent upon the firm's generational stage. Drawing on the socio-emotional wealth theory, the results from a dataset of 204 Belgian family SMEs show an inverted U-shaped relationship between innovativeness and performance. Furthermore, the generational stage of the firm negatively moderates this curvilinear relationship.

Suggested Citation

  • Jonathan Bauweraerts & Olivier Colot, 2023. "Is innovativeness always beneficial in family SMEs? The moderating role of generational stage," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 48(2), pages 101-127.
    • Handle: RePEc:ids:ijesbu:v:48:y:2023:i:2:p:101-127
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