The Role of Behavioral Strategic Controls in Family Firm Innovation

Lin-Ching Hsu and Hae-Ching Chang

Industry and Innovation, 2011, vol. 18, issue 7, 709-727

Abstract: This study investigates the role of behavioral strategic controls in the relationships between ownership, generational involvement and innovation in family firms. Drawing on social capital theory, we examine how family ownership and generational involvement influence the use of behavioral strategic controls, and how behavioral strategic controls in turn affect family firm innovation. We use multiple regression analysis to test our hypotheses in a sample of 124 managers from Taiwanese family firms. The results show that family ownership is significantly related to the use of behavioral strategic controls that, in turn, have a significantly positive effect on family firm innovation. However, the results also show that multi-generational involvement in a business is not significantly related to the use of behavioral strategic controls.

Date: 2011
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Citations: View citations in EconPapers (16)

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DOI: 10.1080/13662716.2011.604474

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