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The role of human capital on family firm innovativeness: the strategic leadership role of family board members

Author

Listed:
  • Andrea Calabrò

    (IPAG Entrepreneurship and Family Business Center, IPAG Business School)

  • Mariateresa Torchia

    (International University of Monaco, INSEEC U Research Center, 14 Rue Hubert Clerissi)

  • Daniela Gimenez Jimenez

    (TUM School of Management, Technische Universität München)

  • Sascha Kraus

    (Durham University Business School, Durham University)

Abstract

Drawing on the resource-based view of the firm, this study investigates the relationship between human capital (employees’ experience, knowledge and technical skills, managerial talent) and innovativeness (propensity to innovate) in a sample of 478 family firms taken from a cross-country dataset (STEP Project). Furthermore, we consider the moderating effect of the proportion of family members sitting on the board of directors (family board ratio). The main findings highlight that there is a positive relationship between human capital and family firm innovativeness. Moreover, family board ratio positively moderates the relationship between human capital and innovativeness in such a way that when the family board ratio is high, the relationship between human capital and innovativeness is stronger. This result is weaker when multiple family generations are actively involved in the firm. In summary, family members sitting on the board of directors focus more attention on people and for this reason, play an important strategic leadership role in valorizing human capital that fosters more innovativeness.

Suggested Citation

  • Andrea Calabrò & Mariateresa Torchia & Daniela Gimenez Jimenez & Sascha Kraus, 0. "The role of human capital on family firm innovativeness: the strategic leadership role of family board members," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-27.
    • Handle: RePEc:spr:intemj:v::y::i::d:10.1007_s11365-020-00657-y
    DOI: 10.1007/s11365-020-00657-y
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