ABSTRACT
Purpose:
The purpose of this study is to analyze the capacity of family firms to absorb relevant information from their surrounding environments, and incorporate it in their innovative activities. The study also seeks to improve our understanding if, and in what ways, the generational diversity in firm's management is an important resource.
Originality/gap/relevance/implications:
In spite of the relevance of this matter, few scholars have explored the relationship between absorptive capacity (Acap) and family firms. On the other hand, the economic importance of these firms is reported, for example, in Leone (2005) and Machado, Grzybovski, Teixeira and Silva (2013), authors reporting that approximately 90% of Brazilian firms are controlled by families, being the fastest-growing business segment.
Key methodological aspects:
The sample consists of 241 family firms. The SmartPLS software is used for structural equation modeling.
Summary of key results:
The results show that Acap is an important predictor for the innovation performance of family firms. Contrary to expectation, the involvement of several generations in the management of the family firms is not a significant moderator between ACAP and innovation performance.
Key considerations/conclusions:
This study fills an important gap in the research on family firms, once, by taking into consideration the generational diversity in the management of these firms, its results deepen our understanding of the essential features of a family business, and analyze the innovation in an intergenerational perspective.
KEYWORDS
Absorptive capacity; Family firms; Generational diversity; Innovation performance; Dynamic capacity
Source: Elaborated by the authors.
Source: Elaborated by the authors.