Seventeenth International Conference on Interdisciplinary Social Sciences

Abstract

The research interest on the dynamics of family firms (FFs) on innovation and performance has grown in the last decade. There are strong theoretical reasons stating that FFs are paradoxically more or less successful to handle the innovation in comparison with non-FFs. Even though FFs are seen as traditional organizations constrained with generational transition, emotional ties, and non-financial goals, they are amongst the most innovative firms in the world and have long-term orientation as their biggest stimulus to innovation. Family involvement in organization directly affects the development of resources unique to FF that leads to innovation and competitive advantage, but heterogeneity of FFs ability to achieve innovation is still poorly understood. This exploratory study focuses on the dynamics of family involvement in the organization with a qualitative approach of single case study as a part of an ongoing PhD. This case study, held with a representative strong innovator FF from an emerging context, reveals the heterogeneity of family involvement with positive factors such as dynamic decision-making process, gradual involvement of generations, and trust in professionals; also negative factors such as family being in constant leadership position, and aim for total ownership. In particular, conservatism, risk-aversion, and propensity for parsimony are no longer valid for FFs. Family’s high level of know-how through experience, holistic knowledge and distributed ability, long-term commitment to operating structures and stakeholders, entrepreneurial spirit, and design awareness are the essence of success for an innovative FF, in other words heterodoxies.