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Paradoxes and Innovation in Family Firms: The Role of Paradoxical Thinking

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  • Amy E. Ingram
  • Marianne W. Lewis
  • Sid Barton
  • William B. Gartner

Abstract

Scholars stress that family firms are inherently paradoxical, and that tensions, such as tradition versus change, family liquidity versus business growth, and founder control versus successor autonomy, can both inhibit and foster innovation. Further, theorists propose that firms led by paradoxical thinkers are more likely to manage these tensions and fuel innovative behavior. Leveraging family business and organizational paradox literatures, this multi–stage exploratory study develops measures of paradoxical tensions and paradoxical thinking in family firms, and tests these propositions. Findings indicate that paradoxical tensions may stymie innovative behavior, but that leaders’ paradoxical thinking is positively related to innovative behavior.

Suggested Citation

  • Amy E. Ingram & Marianne W. Lewis & Sid Barton & William B. Gartner, 2016. "Paradoxes and Innovation in Family Firms: The Role of Paradoxical Thinking," Entrepreneurship Theory and Practice, , vol. 40(1), pages 161-176, January.
    • Handle: RePEc:sae:entthe:v:40:y:2016:i:1:p:161-176
    DOI: 10.1111/etap.12113
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    References listed on IDEAS

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    Cited by:

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    3. Cunha, Miguel Pina e & Rego, Arménio & Clegg, Stewart & Jarvis, Walter P., 2021. "Stewardship as process: A paradox perspective," European Management Journal, Elsevier, vol. 39(2), pages 247-259.
    4. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Kumar, Ajay & Gupta, Shivam & Sengupta, Pooja, 2023. "Rethinking of firm innovation capability: Examining the moderating role of leadership ability on a new business model," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    5. Miguel Angel Acedo-Ramirez & Juan Carlos Ayala Calvo & Ernesto Navarrete-Martinez, 2017. "Determinants of Capital Structure: Family Businesses versus Non-Family Firms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 67(2), pages 80-103, April.
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    7. María J. Martínez-Romero & Julio Diéguez-Soto & Pieter Vandekerkhof, 2023. "Enlightening the influence of family TMT involvement on firm growth and degrowth rates," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 581-610, September.
    8. Röd, Irina, 2016. "Disentangling the family firm’s innovation process: A systematic review," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 185-201.
    9. Irmak Erdogan & Emanuela Rondi & Alfredo De Massis, 2020. "Managing the Tradition and Innovation Paradox in Family Firms: A Family Imprinting Perspective," Entrepreneurship Theory and Practice, , vol. 44(1), pages 20-54, January.
    10. Randolph, Robert V. & Alexander, Benjamin N. & Debicki, Bart J. & Zajkowski, Robert, 2019. "Untangling non-economic objectives in family & non-family SMEs: A goal systems approach," Journal of Business Research, Elsevier, vol. 98(C), pages 317-327.
    11. Unai Arzubiaga & Manel Plana-Farran & Agnès Ros-Morente & Albert Joana & Sílvia Solé, 2021. "Mindfulness and Next-Generation Members of Family Firms: A Source for Sustainability," Sustainability, MDPI, vol. 13(10), pages 1-13, May.
    12. Basco, Rodrigo & Hair, Joseph F. & Ringle, Christian M. & Sarstedt, Marko, 2022. "Advancing family business research through modeling nonlinear relationships: Comparing PLS-SEM and multiple regression," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    13. Margarete Schellong & Nils D. Kraiczy & Lucia Malär & Andreas Hack, 2019. "Family Firm Brands, Perceptions of Doing Good, and Consumer Happiness," Entrepreneurship Theory and Practice, , vol. 43(5), pages 921-946, September.
    14. Zybura, Jan & Zybura, Nora & Ahrens, Jan-Philipp & Woywode, Michael, 2021. "Innovation in the post-succession phase of family firms: Family CEO successors and leadership constellations as resources," Journal of Family Business Strategy, Elsevier, vol. 12(2).
    15. 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.
    16. 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.
    17. Julia K. de Groote & Werner Conrad & Andreas Hack, 2021. "How can family businesses survive disruptive industry changes? Insights from the traditional mail order industry," Review of Managerial Science, Springer, vol. 15(8), pages 2239-2273, November.
    18. Samuel Amponsah Odei & Jan Stejskal, 2018. "The Influence of Knowledge Sources on Firm-Level Innovation: The Case of Slovak and Hungarian Manufacturing Firms," Central European Business Review, Prague University of Economics and Business, vol. 2018(2), pages 61-74.

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