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Family involvement, environmental turbulence, and R&D investment: evidence from Listed Chinese SMEs

Author

Listed:
  • Jie Yang

    (The University of Texas at Tyler)

  • Jieqiong Ma

    (Hofstra University)

  • Hongxin Zhao

    (Saint Louis University)

  • Jim Cater

    (The University of Texas at Tyler)

  • Mark Arnold

    (Saint Louis University)

Abstract

This study draws on the insights of institutional theory and the environmental contingency perspective to explore family firm leaders’ approaches toward R&D investment in China. Our sample consisted of 577 manufacturing firms listed on the small and medium enterprises (SMEs) board of the Shenzhen Stock Exchange over a period of three years (2013–2015), representing a total of 1731 observations. Our findings show that family firms tend to invest less in R&D than their counterparts among non-family firms. Interestingly, this negative impact on R&D investment grows stronger under conditions of high technological turbulence and high government policy turbulence, but not under conditions of high market turbulence.

Suggested Citation

  • Jie Yang & Jieqiong Ma & Hongxin Zhao & Jim Cater & Mark Arnold, 2019. "Family involvement, environmental turbulence, and R&D investment: evidence from Listed Chinese SMEs," Small Business Economics, Springer, vol. 53(4), pages 1017-1032, December.
    • Handle: RePEc:kap:sbusec:v:53:y:2019:i:4:d:10.1007_s11187-018-0113-6
    DOI: 10.1007/s11187-018-0113-6
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    4. Yuming Zhang & Chao Xing & David Tripe, 2020. "Redistribution of China’s Green Credit Policy among Environment-Friendly Manufacturing Firms of Various Sizes: Do Banks Value Small and Medium-Sized Enterprises?," IJERPH, MDPI, vol. 18(1), pages 1-28, December.
    5. Joern Block & Christopher Hansen & Holger Steinmetz, 2023. "Are Family Firms Doing More Innovation Output With Less Innovation Input? A Replication and Extension," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1496-1520, July.
    6. Jiang, Zihao & Shi, Jiarong, 2023. "Government intervention and technological innovation in the wind power industry in China: The role of industrial environmental turbulence," Applied Energy, Elsevier, vol. 344(C).
    7. Muddassar Sarfraz & Syed Ghulam Meran Shah & Larisa Ivascu & Muhammad Asim Ali Qureshi, 2022. "Explicating the impact of hierarchical CEO succession on small‐medium enterprises' performance and cash holdings," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2600-2614, April.
    8. Li, Qing & Hu, Dezhuang & Li, Tang, 2022. "The innovation of family firms in China: New evidence from the China employer-employee survey," China Economic Review, Elsevier, vol. 72(C).
    9. Mengna Xu & Minglin Wang & Yiyang Han, 2023. "Family management, family succession, and R&D investment: An empirical study," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 293-319, March.
    10. Francesco Aiello & Lidia Mannarino & Valeria Pupo, 2023. "Family Firm Heterogeneity And Patenting. Revising The Role Of Size And Age," Working Papers 202301, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.

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