Inbound open innovation strategies and product innovation: A study of family versus non-family businesses

The analysis of inbound open innovation (IOI) offers a promising avenue for family businesses (FBs) to reconcile the preservation of family values with technological advancement. This study advances the debate on whether FBs outperform non-FBs in leveraging IOI for product innovation. Drawing on data from 522 Spanish manufacturing firms (2008–2017), we examine how FBs’ unique characteristics and socioemotional goals shape their ability and willingness to innovate. To clarify differences in product innovation between FBs and non-FBs, we distinguished between external acquisition and collaboration partnerships as different types of IOI, alongside familial resources and socioemotional motivations. Our findings show that FB status negatively moderates the relationship between external acquisition and product innovation, but positively moderates the link between collaboration partnerships and product innovation. The results suggest that FBs excel in product innovation when collaborating but lag behind non-FBs when they independently leverage the acquired external technology. Our research broadens the ability-willingness paradox, highlighting the need for both conditions to explain external acquisition and collaboration as drivers of product innovation.