Sample Research Paper on Family Business Entrepreneurship and Innovation


The use of factors like technology push and demand-pull is an approach used by Migliori
et al. (2020: 1) to measure the innovation investment propensity of a firm that engages in a
family business. Analysis into the family business entrepreneurship and innovation explains that
factors like the uncertain nature of customers, competitive and market dynamics, and prediction
of payoffs represented the knowledgeable and financial resources to promote successful
innovation. Thus, the policy-making agenda for individual firms remains focused on
comprehending factors inhibiting and promoting innovativeness among family firms. Focus on
the family firm is also significant as it shows the different determinants useful for both non-
family and family firms in integrating efficient innovations and entrepreneurship.
Migliori et al. (2020: 1) note, however, that a negative co-relation between technological
innovation and its integration in the family firm may arise from various factors. The use of the
agency theory in the case, for instance, highlights preferences for internal resources of finance
through increased funding safeguarding with focus on non-economic goals like the protection of
the business for other generations. The approach, thus, promotes financial constraints for the
organisations. The investigative tools technology-pushed and demand-pulled innovation,
however, measure the influencing factors showing a firm’s direction concerning technological
innovation. Family business entrepreneurship, thus, can benefit from increased innovation by
using measurement tools like technology-pushed and demand-pulled innovation measures. The
approach helps to develop a more in-depth interpretation of the firms’ innovation behaviors
through its innovative factors while comparing them to other non-family firms highlight
comparison and differences.

Family Business Entrepreneurship and Innovation


Literature Review

Family Management and its Effect on Innovation

Migliori et al. (2020: 1) explains that despite existing data surrounding factors like family
management and their effect on a firm’s innovation, exertion practices, and studies remains
minimal. The author uses the elements of technological push and demand-pull to develop a
moderation of the relationship, especially among private firms. Rondi et al. (2018: 6) notes that
family firms in Europe, for example, represent some enhanced organisations that adopt either
traditional attachment or risk-taking propensity regarding innovation. Despite embracing long-
term orientation concerning change from the families, the tendencies to avert risks and factors
like the use of increased resources for innovation may lead to less development and innovation
realized from such organisations (Rondi et al. 2018: 6). On the other hand, the same firms can
prove more effective in promoting innovation outputs that may sometimes overpass those from
non-family businesses.
Feranita et al. (2017: 3) insist on the use of collaborative innovation among family firms since
the approach uses knowledge from other cases, including past experiences and assistance with
resource constraints focused on boosting the firms’ innovation potential. Since many family
firms remain unwilling to lose shares or control while maintaining long-term orientation,
collaborative innovation not only offers a competitive edge but also overcomes innovation
barriers like the lack of innovation resources. Family conglomerates represent a practical
example of innovation in the family business through engagement in an array of industries for
accessing resources while retaining family control (Feranita et al. 2017: 4). The use of

Family Business Entrepreneurship and Innovation


collaborative innovation for the sharing of technology, information, resources, and knowledge
with other parties through joint ventures, licensing, partnerships, and alliances, thus, can help in
acquiring innovation even from outside sources.

Bridging The Gap Between Innovation Management and Family Firms

Migliori et al. (2020: 3) notes that family management, most times, has adverse effects on
factors like technological innovations. Intentions like the maintenance of substantial power or the
pursuit of non-financial goals represent factors promoting risk aversion and financial constraints
among family firms. The introduction of new perspectives and approaches focused on innovation
management to such firms. Thus, it offers better comprehension of factors inhibiting and driving
innovation among family organisations. As Feninger et al. (2019: 7) note, family involvement
through management represents an essential source for change. Family managers, for instance,
can remain necessary in influencing the firm’s innovation activities and strategies. Strategic
acceptance and management of risks like increasing innovation inputs through the use of
available family dynamics, thus, promote innovation from increased firm dependency on
Internationalisation processes, as Braga et al. (2017: 236) note, can also promote
innovation among family firms. Organisations looking to exploit untapped markets can use the
concepts as motivation to encourage innovation in seeking economic growth. The diversification
of risks from particular markets with aims of gaining profit, thus, can offer family firms reason to
integrate innovation in their practices. Following competitors’ footsteps, customers, diversifying
for reducing risk and looking for efficient production gains like low labour costs, thus, make

Family Business Entrepreneurship and Innovation


innovation a necessity for family firms. Urbinati et al. (2017: 217) uses the social capital theory,
for instance, to explain that the nature of social interactions among family members combined
with emotional commitment produces strong influences behind underlying mechanisms. The
mechanisms involve technological and information innovation techniques adopted and diffused
in the organisation. Adoption of effective, innovative practices, thus, can help to combat
challenges of little to no innovation developed among family firms.
Feninger et al. (2019: 7) notes that the level of family involvement in the management
process affects innovation willingness in both positive and negative ways. Founder-led
organisations, for instance, record higher levels of innovation even when compared to non-
family firms. However, later generations involved in the same family firms shoe lesser focus on
innovation. Lack of diversification of wealth, for instance, promotes caution in input innovation
that breeds negative relationships between innovation levels and the family firm.

Adaptation and Learning Process

The integration of technology-push and demand-pull perspectives in innovation
management can help with proper analysis of innovation behaviours developed by various family
firms (Milgiori et al. 2020: 3). Demand-pull factors, for instance, represent both consumer and
market needs and a firm’s ability and willingness to meet such demands. The elements may
include demand heterogeneity, various geographic markets, and new potential markets. A family
firm, thus, can learn more concerning available markets or demands of its customers to integrate
innovation by following the direction of demand. The technology push perspectives, on the other
hand, focus on introducing new technology through commercialisation focused on driving

Family Business Entrepreneurship and Innovation


innovation (Milgiori et al. 2020: 3). The approach can offer chances to venture into untapped
markets or focus on modifying the firm’s operating systems to meet with current market
standards for competitive advantage.
Constant re-configurations and re-assessments, especially among family firms in building
processes and adopting chances are necessary in successful innovation through rapid changing
times (Feninger et al. 2019: 15).

Family Business Entrepreneurship and Innovation


Aiello, F., Cardamone, P., Mannarino, L. and Pupo, V., 2019. Firm Ownership And Green
Patents. Does Family Involvement In Business Matter? (No. 201904).
Braga, V., Correia, A., Braga, A. and Lemos, S., 2017. The innovation and internationalisation
processes of family businesses. Review of International Business and Strategy.
Feninger, M., Kammerlander, N. and De Massis, A., 2019. Family business innovation: A
circular process model. In Family Firms and Institutional Contexts. Edward Elgar Publishing.
Feranita, F., Kotlar, J. and De Massis, A., 2017. Collaborative innovation in family firms: Past
research, current debates and agenda for future research. Journal of Family Business
Strategy, 8(3), pp.137-156.
Migliori, S., de Massis, A., Maturo, F., and Paolone, F., 2020. How does family management
affect innovation investment propensity? The key role of innovation impulses. Journal of
Business Research, pp. 1-14.

Family Business Entrepreneurship and Innovation


Purkayastha, S., Veliyath, R. and George, R., 2019. The roles of family ownership and family
management in the governance of agency conflicts. Journal of Business Research, 98, pp.50-64.
Rondi, E., De Massis, A. and Kotlar, J., 2018. Unlocking innovation potential: A typology of
family business innovation postures and the critical role of the family system. Journal of Family
Business Strategy, pp. 1-43.
Urbinati, A., Franzò, S., De Massis, A. and Frattini, F., 2017. Innovation in family firms: a
review of prior studies and a framework for future research. In Revolution of innovation
management (pp. 213-246). Palgrave Macmillan, London.