Family Firms’ Exploratory Innovation in Relaxation and Urgency Environments: Evidence from Chinese Manufacturing Firms

Yushu Zhang, Fangcheng Tang, Caiting Dong () and Fushang Cui
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Yushu Zhang: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100044, China
Fangcheng Tang: School of Economics and Management, Beihang University, Beijing 100091, China
Caiting Dong: School of Business Administration, Chongqing Technology and Business University, Chongqing 400067, China
Fushang Cui: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100044, China

Sustainability, 2025, vol. 17, issue 10, 1-18

Abstract: The innovation behavior of family firms has long been a focal point in both academic research and practical applications. Based on the socioemotional wealth theory, this study aims to empirically analyze the differences in exploratory innovation between family and non-family firms while exploring how internal and external environmental factors, namely overperformance duration and industrial competition, moderate this relationship. We conducted an empirical analysis using data from manufacturing firms listed on China’s A-share market from 2009 to 2018. The results indicate that family firms exhibited a lower propensity for exploratory innovation compared to that of non-family firms. Furthermore, the negative relationship between family firms and exploratory innovation was more pronounced in relaxed internal environments characterized by overperformance duration, while this negative relationship was alleviated in urgent external environments marked by intense industrial competition. This study contributes a fresh perspective to the literature on family firm innovation and provides valuable insights for policymakers and family firm managers seeking to enhance innovation competitiveness.

Keywords: family firms; exploratory innovation; overperformance duration; industrial competition (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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