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Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management

Author

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  • Rubén Martínez-Alonso

    (Faculty of Economics and Business, Universidad de Almería, 04120 Almería, Spain)

  • María J. Martínez-Romero

    (Faculty of Economics and Business, Universidad de Almería, 04120 Almería, Spain)

  • Alfonso A. Rojo-Ramírez

    (Faculty of Economics and Business, Universidad de Almería, 04120 Almería, Spain)

Abstract

The aim of this research is to explore the effect that innovation, as a potential source of sustained competitive advantage and firm growth, has on the achievement of sustainable economic performance. In particular, this paper empirically examines the influence of four innovation forms (intramural R&D, extramural R&D, product innovation, and process innovation) on firms’ sustainable economic performance, considering the moderating effect of family involvement in management. To test the hypotheses, random-effects regression analyses are applied to a longitudinal sample of 598 Spanish private manufacturing firms throughout the 2006–2015 period. The results show a negative effect of intramural and extramural R&D on sustainable economic performance and a positive effect of process innovation on sustainable economic performance. Moreover, a reinforced relationship between process innovation and sustainable economic performance is also revealed when family involvement in management acts as a moderator. The findings make several contributions to research and practice.

Suggested Citation

  • Rubén Martínez-Alonso & María J. Martínez-Romero & Alfonso A. Rojo-Ramírez, 2019. "Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management," Sustainability, MDPI, vol. 11(21), pages 1-22, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:6132-:d:283175
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