Innovation as a mixed gamble in family firms: the moderating effect of inter-organizational cooperation

Taewoo Kim (), Jennifer C. Sexton () and Laura E. Marler ()
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Taewoo Kim: University of Louisiana Monroe
Jennifer C. Sexton: Mississippi State University
Laura E. Marler: Mississippi State University

Small Business Economics, 2023, vol. 60, issue 4, No 5, 1389-1408

Abstract: Abstract Despite scholarly attention on family firm innovation, sources of heterogeneity in family firm innovation remain veiled. Drawing upon the mixed gamble perspective, this study introduces and examines a contingency that affects the level of family-owned firms’ innovativeness: inter-organizational cooperation. Based on the idea that inter-organizational cooperation affects family-owned firms’ mixed gamble on innovation, we hypothesize that inter-organizational cooperation mitigates the negative relationship between family ownership and firm’s innovativeness and that the moderating effect varies contingent on the types of cooperative partner and activity. The hypotheses are examined in a sample of 1211 small and medium enterprises in South Korea. The results offer insight into variation in family firm innovation. Our results show that inter-organizational cooperation, especially with non-commercial organizations, is associated with higher levels of innovation. Findings support the idea that family business owners cooperate with external partners as a way to mitigate potential SEW losses often associated with strategic risk. By using a sample of Korean SMEs, we respond to calls in family business research to examine contexts beyond Western countries. Additional contributions, limitations, and future research directions are also discussed.

Keywords: Family ownership; Innovation; Inter-organizational cooperation; Mixed gamble perspective (search for similar items in EconPapers)
JEL-codes: D8 L14 L21 M14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11187-022-00668-9

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