The impact of family ownership on innovation: evidence from the German machine tool industry

The impact of family ownership on innovation: evidence from the German machine tool industry There has been much debate concerning the innovative output of family-owned and non-family-owned companies. The purpose of this study was to show that the impact of family ownership differs depending on important governance conditions. Drawing on secondary data from the German machine tool industry from 2000 to 2010, we show that it is not family ownership per se that drives or impedes innovation in terms of the number of patents granted to a firm. Increases in the degree of family ownership and the generation of the family reduce the innovative output, whereas dedicated family business institutions nurture it. We discuss the implications of our findings for research and management. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

The impact of family ownership on innovation: evidence from the German machine tool industry

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Publisher
Springer US
Copyright
Copyright © 2016 by Springer Science+Business Media New York
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-016-9775-0
Publisher site
See Article on Publisher Site

Abstract

There has been much debate concerning the innovative output of family-owned and non-family-owned companies. The purpose of this study was to show that the impact of family ownership differs depending on important governance conditions. Drawing on secondary data from the German machine tool industry from 2000 to 2010, we show that it is not family ownership per se that drives or impedes innovation in terms of the number of patents granted to a firm. Increases in the degree of family ownership and the generation of the family reduce the innovative output, whereas dedicated family business institutions nurture it. We discuss the implications of our findings for research and management.

Journal

Small Business EconomicsSpringer Journals

Published: Jul 15, 2016

References

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