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Combining Internal and External R&D: The Effects on Innovation Performance in Family and Nonfamily Firms

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  • Fernando Muñoz-Bullón
  • Maria J. Sanchez-Bueno
  • Alfredo De Massis

Abstract

We examine the effect of combining internal and external R&D loci on innovation performance in family firms (FF) and nonfamily firms (non-FFs). Our longitudinal analysis of 27,438 firm-year observations of Spanish manufacturing firms from 1990 to 2016 shows that FFs can better exploit the benefits of simultaneously engaging in internal and external R&D activities, leading to a positive effect on innovation performance. Moreover, the relationship between combined internal and external R&D and innovation performance in FFs is contingent upon firm economic performance. By pointing to the importance of taking into account the combination of internal and external R&D loci to foster innovation in FFs, we challenge current family business innovation research.

Suggested Citation

  • Fernando Muñoz-Bullón & Maria J. Sanchez-Bueno & Alfredo De Massis, 2020. "Combining Internal and External R&D: The Effects on Innovation Performance in Family and Nonfamily Firms," Entrepreneurship Theory and Practice, , vol. 44(5), pages 996-1031, September.
    • Handle: RePEc:sae:entthe:v:44:y:2020:i:5:p:996-1031
    DOI: 10.1177/1042258719879674
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    3. Tang, Junhua & Osmer, Eric & Zheng, Yao, 2022. "Do married couples make better family firm leaders: Evidence from China," Journal of Economics and Business, Elsevier, vol. 118(C).
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    5. 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).
    6. Haddoud, Mohamed Yacine & Kock, Ned & Onjewu, Adah-Kole Emmanuel & Jafari-Sadeghi, Vahid & Jones, Paul, 2023. "Technology, innovation and SMEs' export intensity: Evidence from Morocco," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    7. Cristina Bettinelli & Marco Mismetti & Alfredo De Massis & Barbara Del Bosco, 2022. "A Review of Conflict and Cohesion in Social Relationships in Family Firms," Entrepreneurship Theory and Practice, , vol. 46(3), pages 539-577, May.
    8. Yong Qin & Zeshui Xu & Xinxin Wang & Marinko Škare, 2021. "Are family firms in the eyes of economic policy?," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1233-1259, September.
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