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
Accepted author manuscript, 696 KB, PDF document
Available under license: CC BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License
Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Family management and family guardianship
T2 - governance effects on family firm innovation strategy
AU - Scholes, L
AU - Hughes, M
AU - Wright, M
AU - De Massis, Alfredo
AU - Kotlar, Josip
N1 - 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
PY - 2021/12/31
Y1 - 2021/12/31
N2 - 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.
AB - 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.
KW - Family firm
KW - Family governance
KW - Innovation
KW - Next generation
KW - Family council
KW - Trustees
KW - Exploitation
KW - Innovation strategy
U2 - 10.1016/j.jfbs.2020.100389
DO - 10.1016/j.jfbs.2020.100389
M3 - Journal article
VL - 12
JO - Journal of Family Business Strategy
JF - Journal of Family Business Strategy
SN - 1877-8585
IS - 4
M1 - 100389
ER -