Family ownership: does it matter for funding and success of corporate innovations?

Artikel

Using the Mannheim innovation panel, we investigate whether family firms have higher financial need and how this affects both innovation input and innovation outcomes such as firm or market novelties, or process innovation. Applying the CDM framework, we find that family firms are more likely to have a latent financial need for innovation, which means that they have innovation ideas which they have not implemented yet. We find that family firms have a significantly lower marginal innovation productivity in particular for innovations with radical character, i.e., market novelties. We conclude from this evidence that family firms have a comparative disadvantage in innovation projects that imply high risk and require high innovation capability.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Small Business Economics ; ISSN: 1573-0913 ; Volume: 48 ; Year: 2017 ; Issue: 4 ; Pages: 931-951 ; Berlin: Springer

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Theory ; Firm Behavior: Empirical Analysis ; Capital Budgeting; Fixed Investment and Inventory Studies; Capacity ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Management of Technological Innovation and R&D ; Entrepreneurship
• Subject: Innovation capability ; Funding gaps ; Financing restrictions ; Family firms ; CDM

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schäfer, Dorothea ; Stephan, Andreas ; Mosquera, Jenniffer Solórzano
• Event: Veröffentlichung
• (who): Springer ; ZBW - Leibniz Information Centre for Economics
• (where): Berlin
• (when): 2017

Further information

• DOI: doi:10.1007/s11187-016-9813-y
• Handle: http://hdl.handle.net/10419/249770
• Last update: 10.03.2025, 11:41 AM CET