When the paradox of openness meets the paradox of ability-willingness: family ownership and open innovation partnerships

Feng Dong (), Minhui Tang (), Xiao Wang () and Jiawen Chen ()
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Feng Dong: Guangdong University of Foreign Studies
Minhui Tang: Jinan University
Xiao Wang: Jinan University
Jiawen Chen: Guangzhou University

Small Business Economics, 2025, vol. 65, issue 1, No 19, 535-559

Abstract: Abstract Although it is of great significance to investigate the paradox of openness in family firms, there remains a lack of research on how it differs when family firms engage in open innovation with different types of partners. By distinguishing open innovation with market- and science-based partners, this paper investigates the direct impact of family ownership on these two types of partnerships and the moderating role of intellectual property rights (IPR) protection and political ties. Based on the ability-willingness paradox framework, we hypothesize that family ownership has an inverted U-shaped impact on market-based partnerships while positively impacting science-based partnerships. In addition, the turning point of the relationship between family ownership and market-based partnerships shifts to the right with greater IPR protection or stronger political ties. The positive impact of family ownership on science-based partnerships is strengthened by IPR protection and political ties. These hypotheses are tested using a sample of 649 manufacturing family firms in China. We clarify why and how both the openness and ability-willingness paradox change when family firms collaborate with different open innovation partners and under varying institutional contexts.

Keywords: Open innovation; Family ownership; Intellectual property right protection; Political ties (search for similar items in EconPapers)
JEL-codes: G32 L14 O34 O36 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11187-025-01002-9

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