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The Role of Behavioral Strategic Controls in Family Firm Innovation

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  • Lin-Ching Hsu
  • Hae-Ching Chang

Abstract

This study investigates the role of behavioral strategic controls in the relationships between ownership, generational involvement and innovation in family firms. Drawing on social capital theory, we examine how family ownership and generational involvement influence the use of behavioral strategic controls, and how behavioral strategic controls in turn affect family firm innovation. We use multiple regression analysis to test our hypotheses in a sample of 124 managers from Taiwanese family firms. The results show that family ownership is significantly related to the use of behavioral strategic controls that, in turn, have a significantly positive effect on family firm innovation. However, the results also show that multi-generational involvement in a business is not significantly related to the use of behavioral strategic controls.

Suggested Citation

  • Lin-Ching Hsu & Hae-Ching Chang, 2011. "The Role of Behavioral Strategic Controls in Family Firm Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 18(7), pages 709-727, October.
    • Handle: RePEc:taf:indinn:v:18:y:2011:i:7:p:709-727
    DOI: 10.1080/13662716.2011.604474
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    Cited by:

    1. Dou, Junsheng & Jacoby, Gady & Li, Jialong & Su, Youyi & Wu, Zhenyu, 2019. "Family involvement and family firm internationalization: The moderating effects of board experience and geographical distance," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 59(C), pages 250-261.
    2. Matthias Filser & Alexander Brem & Johanna Gast & Sascha Kraus & Andrea Calabrò, 2016. "Innovation In Family Firms — Examining The Inventory And Mapping The Path," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-39, August.
    3. Dieleman, Marleen, 2019. "Reaping what you sow: The family firm innovation trajectory," Journal of Family Business Strategy, Elsevier, vol. 10(4).
    4. Christina Matz Carnes & R. Duane Ireland, 2013. "Familiness and Innovation: Resource Bundling as the Missing Link," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1399-1419, November.
    5. Arndt Werner & Christian Schröder & Simone Chlosta, 2018. "Driving factors of innovation in family and non-family SMEs," Small Business Economics, Springer, vol. 50(1), pages 201-218, January.
    6. Hatak, Isabella & Kautonen, Teemu & Fink, Matthias & Kansikas, Juha, 2016. "Innovativeness and family-firm performance: The moderating effect of family commitment," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 120-131.
    7. 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.
    8. Hauck, Jana & Prügl, Reinhard, 2015. "Innovation activities during intra-family leadership succession in family firms: An empirical study from a socioemotional wealth perspective," Journal of Family Business Strategy, Elsevier, vol. 6(2), pages 104-118.
    9. Bauweraerts, Jonathan & Arzubiaga, Unai & Diaz-Moriana, Vanessa, 2022. "Going greener, performing better? The case of private family firms," Research in International Business and Finance, Elsevier, vol. 63(C).
    10. Mercedes Rubio-Andrés & Jorge Linuesa-Langreo & Santiago Gutiérrez-Broncano & Miguel Ángel Sastre-Castillo, 2024. "How to improve market performance through competitive strategy and innovation in entrepreneurial SMEs," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1677-1706, September.
    11. Rau, Sabine B. & Werner, Arndt & Schell, Sabrina, 2019. "Psychological ownership as a driving factor of innovation in older family firms," Journal of Family Business Strategy, Elsevier, vol. 10(4).
    12. Welsh, Dianne H.B. & Kaciak, Eugene & Shamah, Rania, 2018. "Determinants of women entrepreneurs' firm performance in a hostile environment," Journal of Business Research, Elsevier, vol. 88(C), pages 481-491.
    13. Jiong Wu & Lei Zhu & Yuheng Hu, 2024. "How does common ownership affect corporate innovation after succession in Chinese family firms? A perspective on value cocreation," Review of Managerial Science, Springer, vol. 18(12), pages 3515-3544, December.
    14. Ya-Fang Wang & Yen-Fang Kuo, 2020. "Exploring the Family Effect on Innovative Capacity and Earnings Management," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 13(2), pages 39-61, September.
    15. Anna Maria Bornhausen & Torsten Wulf, 2024. "Digital innovation in family firms: The roles of non-family managers and transgenerational control intentions," Small Business Economics, Springer, vol. 62(4), pages 1429-1448, April.
    16. Wang, Kun Tracy & Shailer, Greg, 2017. "Family ownership and financial performance relations in emerging markets," International Review of Economics & Finance, Elsevier, vol. 51(C), pages 82-98.

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