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Overcoming the ability-willingness paradox in small family firms’ collaborations

Author

Listed:
  • Christina Guenther

    (WHU-Otto Beisheim School of Management)

  • Maksim Belitski

    (University of Reading
    ICD Business School)

  • Nada Rejeb

    (ICD Business School)

Abstract

Family firms’ collaborative innovation is characterized by the so-called ability-willingness paradox i.e. they are less willing to engage in collaborations despite being more able to manage them for innovation purposes. In this paper, we introduce collaboration partner type and spatial proximity as two important boundary conditions of this paradox. We examine the differences in collaboration for innovation across different spatial proximities and partner types for small family and non-family firms. We use a large sample of 6272 small firms in the United Kingdom (UK) during 2002–2016 to show that this paradox is indeed not a universal phenomenon. Small family firms overcome their lower willingness when collaborating with customers within regional proximity and, based on their unique characteristics and superior ability to govern these collaborations, they are able to generate an innovation premium compared to small non-family firms.

Suggested Citation

  • Christina Guenther & Maksim Belitski & Nada Rejeb, 2023. "Overcoming the ability-willingness paradox in small family firms’ collaborations," Small Business Economics, Springer, vol. 60(4), pages 1409-1429, April.
    • Handle: RePEc:kap:sbusec:v:60:y:2023:i:4:d:10.1007_s11187-022-00669-8
    DOI: 10.1007/s11187-022-00669-8
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    More about this item

    Keywords

    Small family firm; Customers; Innovation; Ability-willingness paradox; Collaboration; Region;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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