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

Scholes, L and Hughes, M and Wright, M and De Massis, Alfredo and Kotlar, Josip (2021) Family management and family guardianship:governance effects on family firm innovation strategy. Journal of Family Business Strategy. ISSN 1877-8585

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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.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Family Business Strategy
Additional Information:
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, 2021, DOI: 10.1016/j.jfbs.2020.100389
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
ID Code:
149002
Deposited By:
Deposited On:
12 Nov 2020 13:10
Refereed?:
Yes
Published?:
Published
Last Modified:
09 Jun 2021 05:42