IDEAS home Printed from https://ideas.repec.org/a/spr/rvmgts/v14y2020i4d10.1007_s11846-018-0309-9.html
   My bibliography  Save this article

Individual innovation behavior and firm-level exploration and exploitation: how family firms make the most of their managers

Author

Listed:
  • Andreas Strobl

    (Innsbruck University School of Management)

  • Kurt Matzler

    (Free University of Bozen-Bolzano)

  • Bright Adu Nketia

    (Innsbruck University School of Management)

  • Viktoria Veider

    (Innsbruck University School of Management)

Abstract

This study investigates the influence of top managers’ individual innovation behavior on firm-level innovation activities, specifically on exploration and exploitation. The influence of individual actions depends on managerial discretion, which is dependent on the ownership context of a business. Thus, this study explores how family ownership moderates the relationships between a top manager’s individual innovation behavior and firm-level exploration and exploitation. Based on a sample of 195 firms, of which 120 are family firms, our findings depict highly significant relationships between managers’ individual innovation behavior and firm-level exploration and exploitation innovation. Furthermore, we find differences regarding these relationships between family firms and their non-family counterparts. We contribute to literature showing that family firms provide a unique context for leveraging a top manager’s individual innovation behavior into firm-level exploration activities.

Suggested Citation

  • Andreas Strobl & Kurt Matzler & Bright Adu Nketia & Viktoria Veider, 2020. "Individual innovation behavior and firm-level exploration and exploitation: how family firms make the most of their managers," Review of Managerial Science, Springer, vol. 14(4), pages 809-844, August.
    • Handle: RePEc:spr:rvmgts:v:14:y:2020:i:4:d:10.1007_s11846-018-0309-9
    DOI: 10.1007/s11846-018-0309-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11846-018-0309-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11846-018-0309-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Franz Kellermanns & Kimberly Eddleston & Ravi Sarathy & Fran Murphy, 2012. "Innovativeness in family firms: a family influence perspective," Small Business Economics, Springer, vol. 38(1), pages 85-101, January.
    2. David G. Sirmon & Jean–Luc Arregle & Michael A. Hitt & Justin W. Webb, 2008. "The Role of Family Influence in Firms’ Strategic Responses to Threat of Imitation," Entrepreneurship Theory and Practice, , vol. 32(6), pages 979-998, November.
    3. Martin Quinn & Martin R. W. Hiebl & Ken Moores & Justin B. Craig, 2018. "Future research on management accounting and control in family firms: suggestions linked to architecture, governance, entrepreneurship and stewardship," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(4), pages 529-546, February.
    4. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2015. "Do Private Equity Owned Firms Have Better Management Practices?," American Economic Review, American Economic Association, vol. 105(5), pages 442-446, May.
    5. Michael Carney, 2005. "Corporate Governance and Competitive Advantage in Family–Controlled Firms," Entrepreneurship Theory and Practice, , vol. 29(3), pages 249-265, May.
    6. Vincent L. Barker , III & George C. Mueller, 2002. "CEO Characteristics and Firm R&D Spending," Management Science, INFORMS, vol. 48(6), pages 782-801, June.
    7. Kaplan, Sarah & Tripsas, Mary, 2008. "Thinking about technology: Applying a cognitive lens to technical change," Research Policy, Elsevier, vol. 37(5), pages 790-805, June.
    8. Michael D. Ensley & Allison W. Pearson, 2005. "An Exploratory Comparison of the Behavioral Dynamics of Top Management Teams in Family and Nonfamily New Ventures: Cohesion, Conflict, Potency, and Consensus," Entrepreneurship Theory and Practice, , vol. 29(3), pages 267-284, May.
    9. Veider, Viktoria & Matzler, Kurt, 2016. "The ability and willingness of family-controlled firms to arrive at organizational ambidexterity," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 105-116.
    10. Martin R. W. Hiebl & Birgit Feldbauer-Durstmüller & Christine Duller & Herbert Neubauer, 2012. "Institutionalisation Of Management Accounting In Family Businesses — Empirical Evidence From Austria And Germany," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 405-436.
    11. Zahra, Shaker A. & Neubaum, Donald O. & Larraneta, Barbara, 2007. "Knowledge sharing and technological capabilities: The moderating role of family involvement," Journal of Business Research, Elsevier, vol. 60(10), pages 1070-1079, October.
    12. Patricio Duran & Nadine Kammerlander & Marc van Essen & Thomas Zellweger, 2016. "Doing More with Less : Innovation Input and Output in Family Firms," Post-Print hal-02312103, HAL.
    13. Patricio Duran & Nadine Kammerlander & Marc van Essen & Thomas Zellweger, 2016. "Doing More with Less : Innovation Input and Output in Family Firms," Post-Print hal-02276703, HAL.
    14. Thomas Zellweger & Philipp Sieger, 2012. "Entrepreneurial orientation in long-lived family firms," Small Business Economics, Springer, vol. 38(1), pages 67-84, January.
    15. Michael Lubatkin & Zeki Simsek & Yan Ling & John F. Veiga, 2006. "Ambidexterity and Performance in Small-to Medium-Sized Firms : The Pivotal Role of Top Management Team Behavioral Integration," Post-Print hal-02311781, HAL.
    16. Martin R.W. Hiebl, 2012. "Risk aversion in family firms: what do we really know?," Journal of Risk Finance, Emerald Group Publishing, vol. 14(1), pages 49-70, December.
    17. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    18. Mourad Dakhli & Dirk De Clercq, 2004. "Human capital, social capital, and innovation: a multi-country study," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(2), pages 107-128, March.
    19. Srivastava, Abhishek & Lee, Hun, 2005. "Predicting order and timing of new product moves: the role of top management in corporate entrepreneurship," Journal of Business Venturing, Elsevier, vol. 20(4), pages 459-481, July.
    20. Rajagopal, 2014. "Organizations and Innovation," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 3, pages 58-86, Palgrave Macmillan.
    21. Lee Fleming, 2001. "Recombinant Uncertainty in Technological Search," Management Science, INFORMS, vol. 47(1), pages 117-132, January.
    22. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    23. Tanja Steiger & Christine Duller & Martin R. W. Hiebl, 2015. "No Consensus in Sight: An Analysis of Ten Years of Family Business Definitions in Empirical Research Studies," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 25-62.
    24. James H. Davis & Mathew R. Allen & H. David Hayes, 2010. "Is Blood Thicker Than Water? A Study of Stewardship Perceptions in Family Business," Entrepreneurship Theory and Practice, , vol. 34(6), pages 1093-1116, November.
    25. Webster, Frederick Jr., 1988. "The rediscovery of the marketing concept," Business Horizons, Elsevier, vol. 31(3), pages 29-39.
    26. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    27. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.
    28. Astrachan, Claudia Binz & Patel, Vijay K. & Wanzenried, Gabrielle, 2014. "A comparative study of CB-SEM and PLS-SEM for theory development in family firm research," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 116-128.
    29. Baron, Robert A. & Tang, Jintong, 2011. "The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism," Journal of Business Venturing, Elsevier, vol. 26(1), pages 49-60, January.
    30. Shaker A. Zahra & James C. Hayton & Donald O. Neubaum & Clay Dibrell & Justin Craig, 2008. "Culture of Family Commitment and Strategic Flexibility: The Moderating Effect of Stewardship," Entrepreneurship Theory and Practice, , vol. 32(6), pages 1035-1054, November.
    31. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    32. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    33. Isabelle Le Breton–Miller & Danny Miller, 2006. "Why Do Some Family Businesses Out–Compete? Governance, Long–Term Orientations, and Sustainable Capability," Entrepreneurship Theory and Practice, , vol. 30(6), pages 731-746, November.
    34. Kraiczy, Nils D. & Hack, Andreas & Kellermanns, Franz W., 2014. "New product portfolio performance in family firms," Journal of Business Research, Elsevier, vol. 67(6), pages 1065-1073.
    35. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    36. Alexander S. Alexiev & Justin J. P. Jansen & Frans A. J. Van den Bosch & Henk W. Volberda, 2010. "Top Management Team Advice Seeking and Exploratory Innovation: The Moderating Role of TMT Heterogeneity," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1343-1364, November.
    37. Mary J. Benner, 2010. "Securities Analysts and Incumbent Response to Radical Technological Change: Evidence from Digital Photography and Internet Telephony," Organization Science, INFORMS, vol. 21(1), pages 42-62, February.
    38. Andreas Kallmuenzer & Andreas Strobl & Mike Peters, 2018. "Tweaking the entrepreneurial orientation–performance relationship in family firms: the effect of control mechanisms and family-related goals," Review of Managerial Science, Springer, vol. 12(4), pages 855-883, October.
    39. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    40. Duane Ireland, R. & Webb, Justin W., 2007. "Strategic entrepreneurship: Creating competitive advantage through streams of innovation," Business Horizons, Elsevier, vol. 50(1), pages 49-59.
    41. Plöckinger, Martin & Aschauer, Ewald & Hiebl, Martin R.W. & Rohatschek, Roman, 2016. "The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 55-75.
    42. Robert A. Burgelman, 1983. "Corporate Entrepreneurship and Strategic Management: Insights from a Process Study," Management Science, INFORMS, vol. 29(12), pages 1349-1364, December.
    43. Frank T. Rothaermel & Andrew M. Hess, 2007. "Building Dynamic Capabilities: Innovation Driven by Individual-, Firm-, and Network-Level Effects," Organization Science, INFORMS, vol. 18(6), pages 898-921, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christine Weigel & Klaus Derfuss & Martin R. W. Hiebl, 2023. "Financial managers and organizational ambidexterity in the German Mittelstand: the moderating role of strategy involvement," Review of Managerial Science, Springer, vol. 17(2), pages 569-605, February.
    2. Haddoud, Mohamed Yacine & Onjewu, Adah-Kole Emmanuel & Nowiński, Witold, 2021. "Environmental commitment and innovation as catalysts for export performance in family firms," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Matthias Guffler & Alexandra Bertschi-Michel & Andreas Hack & Franz W. Kellermanns, 2023. "Family firm ambidexterity: the influence of paradoxical tensions and the Entrepreneurial Family’s cohesion," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1945-1977, December.
    4. Unai Arzubiaga & Alfredo De Massis & Amaia Maseda & Txomin Iturralde, 2023. "The influence of family firm image on access to financial resources in family SMEs: a signaling theory perspective," Review of Managerial Science, Springer, vol. 17(1), pages 233-258, January.
    5. Mei-Hui Peng & Bireswar Dutta, 2023. "The Mediating Effects of Innovativeness and System Usability on Students’ Personality Differences: Recommendations for E-Learning Platforms in the Post-Pandemic Era," Sustainability, MDPI, vol. 15(7), pages 1-20, March.
    6. María del Pilar Casado-Belmonte & María de las Mercedes Capobianco-Uriarte & Rubén Martínez-Alonso & María J. Martínez-Romero, 2021. "Delineating the Path of Family Firm Innovation: Mapping the Scientific Structure," Review of Managerial Science, Springer, vol. 15(8), pages 2455-2499, November.
    7. Juliana R. Baltazar & Cristina I. Fernandes & Veland Ramadani & Mathew Hughes, 2023. "Family business succession and innovation: a systematic literature review," Review of Managerial Science, Springer, vol. 17(8), pages 2897-2920, November.
    8. Hanan S. AlEssa & Christopher M. Durugbo, 2022. "Systematic review of innovative work behavior concepts and contributions," Management Review Quarterly, Springer, vol. 72(4), pages 1171-1208, December.
    9. Ronen Harel & Dafna Schwartz & Dan Kaufmann, 2021. "The relationship between innovation promotion processes and small business success: the role of managers’ dominance," Review of Managerial Science, Springer, vol. 15(7), pages 1937-1960, October.
    10. Kazancoglu, Yigit & Sezer, Muruvvet Deniz & Ozkan-Ozen, Yesim Deniz & Mangla, Sachin Kumar & Kumar, Ajay, 2021. "Industry 4.0 impacts on responsible environmental and societal management in the family business," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Unai Arzubiaga & Amaia Maseda & Txomin Iturralde, 2019. "Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management," Review of Managerial Science, Springer, vol. 13(1), pages 1-31, February.
    2. Matthias Guffler & Alexandra Bertschi-Michel & Andreas Hack & Franz W. Kellermanns, 2023. "Family firm ambidexterity: the influence of paradoxical tensions and the Entrepreneurial Family’s cohesion," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1945-1977, December.
    3. Veider, Viktoria & Matzler, Kurt, 2016. "The ability and willingness of family-controlled firms to arrive at organizational ambidexterity," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 105-116.
    4. César Camisón-Zornoza & Beatriz Forés-Julián & Alba Puig-Denia & Sergio Camisón-Haba, 0. "Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-34.
    5. César Camisón-Zornoza & Beatriz Forés-Julián & Alba Puig-Denia & Sergio Camisón-Haba, 2020. "Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1393-1426, December.
    6. Vanessa Weimann & Maike Gerken & Marcel Hülsbeck, 2021. "Old flames never die – the role of binding social ties for corporate entrepreneurship in family firms," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1707-1730, December.
    7. Sanchez-Famoso, Valeriano & Pittino, Daniel & Chirico, Francesco & Maseda, Amaia & Iturralde, Txomin, 2019. "Social capital and innovation in family firms: The moderating roles of family control and generational involvement," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    8. Sherlock, Chelsea & Dibrell, Clay & Memili, Esra, 2023. "The impact of family commitment on firm innovativeness: The mediating role of resource stocks," Journal of Family Business Strategy, Elsevier, vol. 14(3).
    9. Chirico, Francesco & Duane Ireland, R. & Pittino, Daniel & Sanchez-Famoso, Valeriano, 2022. "Radical innovation in (multi)family owned firms," Journal of Business Venturing, Elsevier, vol. 37(3).
    10. Sami Basly & Amira Hammouda, 2020. "Family Businesses and Digital Entrepreneurship Adoption: A Conceptual Model," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(2), pages 326-364, September.
    11. Migliori, Stefania & De Massis, Alfredo & Maturo, Fabrizio & Paolone, Francesco, 2020. "How does family management affect innovation investment propensity? The key role of innovation impulses," Journal of Business Research, Elsevier, vol. 113(C), pages 243-256.
    12. Webb, Justin W. & Ketchen Jr., David J. & Ireland, R. Duane, 2010. "Strategic entrepreneurship within family-controlled firms: Opportunities and challenges," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 67-77, June.
    13. Hu, Min & Dou, Junsheng & You, Xialei, 2023. "Is organizational ambidexterity always beneficial to family-managed SMEs? Evidence from China," Journal of Business Research, Elsevier, vol. 167(C).
    14. Vanessa Diaz-Moriana & Eric Clinton & Nadine Kammerlander & G. T. Lumpkin & Justin B. Craig, 2020. "Innovation Motives in Family Firms: A Transgenerational View," Entrepreneurship Theory and Practice, , vol. 44(2), pages 256-287, March.
    15. Strobl, Andreas & Bauer, Florian & Matzler, Kurt, 2020. "The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    16. Julia K. de Groote & Werner Conrad & Andreas Hack, 2021. "How can family businesses survive disruptive industry changes? Insights from the traditional mail order industry," Review of Managerial Science, Springer, vol. 15(8), pages 2239-2273, November.
    17. Scholes, Louise & Hughes, Mathew & Wright, Mike & De Massis, Alfredo & Kotlar, Josip, 2021. "Family management and family guardianship: Governance effects on family firm innovation strategy," Journal of Family Business Strategy, Elsevier, vol. 12(4).
    18. Anne Heider & Marcel Hülsbeck & Leopold Schlenk-Barnsdorf, 2022. "The role of family firm specific resources in innovation: an integrative literature review and framework," Management Review Quarterly, Springer, vol. 72(2), pages 483-530, June.
    19. Christopher Kurzhals & Lorenz Graf‐Vlachy & Andreas König, 2020. "Strategic leadership and technological innovation: A comprehensive review and research agenda," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 437-464, November.
    20. Sondos G. Abdelgawad & Shaker A. Zahra, 2020. "Family Firms’ Religious Identity and Strategic Renewal," Journal of Business Ethics, Springer, vol. 163(4), pages 775-787, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:rvmgts:v:14:y:2020:i:4:d:10.1007_s11846-018-0309-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.