Feranita, Feranita and Ruiz Palomo, Daniel and Diegues Soto, Julio (2015) The Role of Family Involvement and Management Control Systems in Promoting Innovativeness in Family Firms. In: International Family Enterprise Research Academy (IFERA) 2015 Annual Conference, 2015-06-30. (Submitted)
Full text not available from this repository.Abstract
Drawing on the literature from both family business (FB) and management control systems (MCS), we investigate in this paper the role of family involvement in management and MCS in promoting technological product innovation in family business. We take on a different view in explaining the different rate of technological innovativeness in family firms compared to non-family firms, taking into account the unique family business characteristics and traits. Using a Spanish manufacturing sector database, with a total sample of 1,951 firms, we examine the use of MCS and technological innovativeness, controlling for firm age and size. Our preliminary findings show support on the positive effect of family involvement in management towards technological innovation in family firms and the significance of MCS in promoting innovativeness in family firms. Thus, we open the blackbox of family business and provide a research framework relating mechanisms leading to technological innovativeness in family firms.