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Individual innovation behavior and firm-level exploration and exploitation: how family firms make the most of their managers

Author

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  • Andreas Strobl

    (Innsbruck University School of Management)

  • Kurt Matzler

    (Free University of Bozen-Bolzano)

  • Bright Adu Nketia

    (Innsbruck University School of Management)

  • Viktoria Veider

    (Innsbruck University School of Management)

Abstract

This study investigates the influence of top managers’ individual innovation behavior on firm-level innovation activities, specifically on exploration and exploitation. The influence of individual actions depends on managerial discretion, which is dependent on the ownership context of a business. Thus, this study explores how family ownership moderates the relationships between a top manager’s individual innovation behavior and firm-level exploration and exploitation. Based on a sample of 195 firms, of which 120 are family firms, our findings depict highly significant relationships between managers’ individual innovation behavior and firm-level exploration and exploitation innovation. Furthermore, we find differences regarding these relationships between family firms and their non-family counterparts. We contribute to literature showing that family firms provide a unique context for leveraging a top manager’s individual innovation behavior into firm-level exploration activities.

Suggested Citation

  • Andreas Strobl & Kurt Matzler & Bright Adu Nketia & Viktoria Veider, 2020. "Individual innovation behavior and firm-level exploration and exploitation: how family firms make the most of their managers," Review of Managerial Science, Springer, vol. 14(4), pages 809-844, August.
    • Handle: RePEc:spr:rvmgts:v:14:y:2020:i:4:d:10.1007_s11846-018-0309-9
    DOI: 10.1007/s11846-018-0309-9
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