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  • Scholes_et_al_2020_JFBS_FAMILY_MANAGEMENT_AND_FAMILY_GUARDIANSHIP-_GOVERNANCE_EFFECTS_ON_FAMILY_FIRM_INNOVATION_STRATEGY (1)

    Rights statement: This is the author’s version of a work that was accepted for publication in Journal of Family Business Strategy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Family Business Strategy, 12, 4, 2021, DOI: 10.1016/j.jfbs.2020.100389

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Family management and family guardianship: governance effects on family firm innovation strategy

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
Article number100389
<mark>Journal publication date</mark>31/12/2021
<mark>Journal</mark>Journal of Family Business Strategy
Issue number4
Volume12
Number of pages11
Publication StatusPublished
Early online date9/04/21
<mark>Original language</mark>English

Abstract

Drawing on agency and stewardship theories, we examine how two dimensions of family governance influence family firm innovation strategy. Specifically, we differentiate between the effects of Family Management (family CEO, family managerial involvement, and next-generation involvement in the business) and Family Guardianship (trustees and family council) and study their effects on explorative and exploitative modes of innovation strategy. Our analysis of unique survey data from 328 UK private family firms shows that specific dimensions of Family Management (next-generation involvement) and Family Guardianship (the existence of a family council) are significantly positively associated with exploration. Exploitation, however, is positively associated with next-generation involvement only. These findings answer calls to theorize and empirically examine the heterogeneity of family firms’ innovation modes. These findings further respond to calls to better understand the relationship between governance and behavior, advancing scholarly debate at the intersection of agency and stewardship, family governance, and innovation.

Bibliographic note

This is the author’s version of a work that was accepted for publication in Journal of Family Business Strategy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Family Business Strategy, 12, 4, 2021, DOI: 10.1016/j.jfbs.2020.100389