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Family CEO duality and research and development intensity in public family enterprises: Temporality as a model boundary

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  • Lin, Hsing-Er
  • Yu, Andy
  • Stambaugh, Jeff
  • Tsao, Chiung-Wen
  • Wang, Rebecca Jen-Hui
  • Hsu, I-Chieh

Abstract

Surprisingly, despite the continuing interest in family firm innovation, few studies have articulated the critical role of family CEO duality (i.e., when the family CEO serves as the chairman of the board of directors). Drawing on the restricted socioemotional wealth perspective, we posit that family CEO duality is negatively associated with a family firm's research and development (R&D) intensity. We further propose that such a relationship is affected by two temporal conditions: firm age and CEO succession. We tested our model with a longitudinal dataset (2008–2016) comprising 528 public family firms and found a negative relationship between duality and R&D intensity. Additionally, firm age mitigates such a negative relationship. Specifically, duality in a younger family enterprise lessens R&D investment more so than in an older firm. However, the act of CEO succession has the opposite effect, with the negative relationship between duality and R&D investment intensity becoming stronger post-CEO succession than pre-CEO succession.

Suggested Citation

  • Lin, Hsing-Er & Yu, Andy & Stambaugh, Jeff & Tsao, Chiung-Wen & Wang, Rebecca Jen-Hui & Hsu, I-Chieh, 2023. "Family CEO duality and research and development intensity in public family enterprises: Temporality as a model boundary," Journal of Business Research, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:jbrese:v:158:y:2023:i:c:s0148296322010372
    DOI: 10.1016/j.jbusres.2022.113572
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