Abstract
The objective of this research study involves analyzing the capacities of family firms to absorb relevant information about the external environment and to incorporate this into their innovation-focused activities before then consequently analyzing the repercussions for innovation performance. This furthermore seeks to grasp whether, and to what extent, the generational diversity in the firm’s management represents a valuable resource. In order to obtain these objectives, we opted for a quantitative study with the data collected by a questionnaire sent out by email to the managers of Brazilian firms, specifically those with their headquarters in the state of Rio Grande do Sul and registered with the Rio Grande do Sul Industrial Federation. The results of this study provide recognition of ACAP as an important predictor of FF innovation performance. In particular, the findings suggest that the potential absorptive capacity (PACAP) generates a positive and significant effect on the realized absorptive capacity (RACAP). We may also report the positive and significant effect of PACAP on the incremental innovation performance and, similarly, for the RACAP influence on the radical innovation performance. Contrary to that expected, however, the results point to generational diversity in the management of the FF which is not a significant moderator between ACAP and innovation performance.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Andersen, J. (2015). The absorptive capacity of family firms. Journal of Family Business Management, 5(1), 73–89.
Astrachan, J. H., & Kolenko, T. A. (1994). A neglected factor explaining family business success: Human resource practices. Family Business Review, 7, 251–262.
Barkema, H. G., & Shvyrkov, O. (2007). Does top management team diversity promote or hamper foreign expansion? Strategic Management Journal, 28, 663–680.
Becker, J., Klein, K., & Wetzels, M. (2012). Hierarchical latent variable models in PLS-SEM: Guidelines for using reflective-formative type models. Long Range Planning, 45, 359–394.
Block, J. H. (2012). R&D investments in family and founder firms: An agency perspective. Journal of Business Venturing, 27(2), 248–265.
Burcharth, A. L. L. d. A., Lettl, C., & Ulhøi, J. P. (2015). Extending organizational antecedents of absorptive capacity: Organizational characteristics that encourage experimentation. Technological Forecasting and Social Change, 90, 269–284.
Camisón, C., & Forés, B. (2010). Knowledge absorptive capacity: New insights for its conceptualization and measurement. Journal of Business Research, 63(7), 707–715.
Carnes, C. M., & Ireland, R. D. (2013). Familiness and innovation: Resource bundling as the missing link. Entrepreneurship: Theory and Practice, 37(6), 1399–1419.
Carney, M. (2005). Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship: Theory and Practice, 29(3), 249–265.
Cennamo, C., Berrone, P., Cruz, C., & Gomez-Mejia, L. R. (2012). Socioemotional wealth and proactive stakeholder engagement: Why family-controlled firms care more about their stakeholders. Entrepreneurship: Theory and Practice, 36(6), 1153–1173.
Chen, C., & Huang, J. (2009). Strategic human resource practices and innovation performance – The mediating role of knowledge management capacity. Journal of Business Research, 62, 104–114.
Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43, 354–363.
Chirico, F., & Salvato, C. (2016). Knowledge internalization and product development in family firms: When relational and affective factors matter. Entrepreneurship: Theory and Practice, 40, 201–229.
Chirico, F., Sirmon, D. G., Sciascia, S., & Mazzola, P. (2011). Resource orchestration in family firms: Investigating how entrepreneurial orientation, generational involvement, and participative strategy affect performance. Strategic Entrepreneurship Journal, 5(4), 307–326.
Choi, Y. R., Zahra, S. A., Yoshikawa, T., & Han, B. H. (2015). Family ownership and R&D investment: The role of growth opportunities and business group membership. Journal of Business Research, 68, 1053–1061.
Chrisman, J. J., Chua, J. H., & Steier, L. P. (2005). Sources and consequences of distinctive familiness: An introduction. Entrepreneurship: Theory and Practice, 29(3), 237–247.
Chrisman, J., & Patel, P. (2011). Variations in R&D investments of family and non-family firms: Behavioral agency and myopic loss aversion perspectives. Academy of Management Journal, 55(4), 976–997.
Chrisman, J. J., Steier, L. P., & Chua, J. H. (2008). Toward a theoretical basis for understanding the dynamics of strategic performance in family firms. Entrepreneurship: Theory and Practice, 32(6), 935–947.
Classen, N., Van Gils, A., Bammens, Y., & Carree, M. (2012). Accessing resources from innovation partners: The search breadth of family SMEs. Journal of Small Business Management, 50(2), 191–215.
Clercq, D., & Belausteguigoitia, I. (2015). Intergenerational strategy involvement and family firms’ innovation pursuits: The critical roles of conflict management and social capital. Journal of Family Business Strategy, 6(3), 178–189.
Cohen, J. (1977). Statistical power analysis for the behavioral sciences (Revised Ed.). New York: Academic Press.
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning: The two faces of R&D. Economic Journal, 99, 569–596.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive-capacity – A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.
Cruz, C., & Nordqvist, M. (2012). Entrepreneurial orientation in family firms: A generational perspective. Small Business Economics, 38(1), 33–49.
DeVellis, R. F. (2012). Scale development: Theory and applications (3rd ed.). Thousand Oaks, CA: Sage.
Dolz, C., Iborra, M., & Safón, V. (2015). Empresa familiar, equipos directivos, diversidad y ambidiestría en las PYMES. RAE-Revista de Administração de Empresas, 55(6), 673–687.
Duran, P., Kammerlander, N., Van Essen, M., & Zellweger, T. (2016). Doing more with less: Innovation input and output in family firms. Academy of Management Journal, 59(4), 1224–1264.
Ebers, M., & Maurer, I. (2014). Connections count: How relational embeddedness and relational empowerment foster absorptive capacity. Research Policy, 43, 318–332.
European Family Businesses. (2014). Families in business for the long term. Retrieved from http://europeanfamilybusinesses.eu
Faul, F., Erdfelder, E., Lang, A.-G., & Buchner, A. (2007). G*Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39, 175–191.
Federação das Indústrias do estado do Rio Grande do Sul – FIERGS. (2015). Cadastro das Indústrias, Fornecedores and Serviços do Rio Grande do Sul [CD]. Porto Alegre: Unidade de Estudos Técnicos, Sistema FIERGS.
Ferreira, J., Fernandes, C., Alves, H., & Raposo, M. (2015). Drivers of innovation strategies: Testing the Tidd and Bessant (2009) model. Journal of Business Research, 68(7), 1395–1403.
Ferreira, J., Raposo, M., & Fernandes, C. (2013). Does innovativeness of knowledge-intensive business services differ from other industries? The Service Industries Journal, 33(7–8), 734–748.
Filser, M., Brem, A., Gast, J., Kraus, S., & Calabrò, A. (2016). Innovation in family firms: Examining the inventory and mapping the path. International Journal of Innovation Management, 20(6), 1–39.
Flatten, T. C., Engelen, A., Zahra, S. A., & Brettel, M. (2011). A measure of absorptive capacity: Scale development and validation. European Management Journal, 29(2), 98–116.
Forés, B., & Camisón, C. (2015). Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size? Journal of Business Research, 69(2), 831–848.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Fosfuri, A., & Tribó, J. (2008). Exploring the antecedents of potential absorptive capacity and its impact on innovation performance. Omega, 36(2), 173–187.
Freeman, C. (1988). Japan: A new national system of innovation? In G. Dosi, C. Freeman, R. Nelson, G. Silverberg, & L. Soete (Eds.), Technical change and economic theory. London: Pinter Publishers.
Garver, M. S., & Mentzer, J. T. (1999). Logistics research methods: Employing structural equation modeling to test for construct validity. Journal of Business Logistics, 20, 33–57.
Gersick, K., Davis, J. A., Hampton, M. M., & Lansberg, I. (2006). De geração para geração: ciclos de vida das empresas familiares. Rio de Janeiro: Elsevier.
Gómez-Mejía, L. R., Campbell, J. T., Martin, G., Hoskisson, R. E., Makri, M., & Sirmon, D. G. (2014). Socioemotional wealth as a mixed gamble: Revisiting family firm R&D investments with the behavioral agency model. Entrepreneurship: Theory and Practice, 38(6), 1351–1374.
Gómez-Mejía, L. R., Takács Haynes, K., Núñez-Nickel, M., Jacobson, K. J. L., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52, 106–137.
Habbershon, T. G., & Williams, M. L. (1999). A resource-based framework for assessing the strategic advantages of family firms. Family Business Review, 12, 1–25.
Habbershon, T. G., Williams, M. L., & Macmillan, I. C. (2003). A unified systems theory of family firm performance. Journal of Business Venturing, 18(4), 451–465.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks, CA: Sage.
Hair, J. F., Tatham, R. L., Anderson, R. E., & Black, W. (2005). Análise multivariada de dados (5a ed.). Porto Alegre: Bookman.
Hernández-Perlines, F., Moreno-Garcia, J., & Yáñez-Araque, B. (2016). Using fuzzy-set qualitative comparative analysis to develop an absorptive capacity-based view of training. Journal of Business Research, 69, 1510–1515.
Huber, G. P., & Power, D. J. (1985). Retrospective reports of strategic managers: Guidelines for increasing their accuracy. Strategic Management Journal, 6, 171–180.
Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2005). Managing potential and realized absorptive capacity: How do organizational antecedents matter. Academy of Management Journal, 48(6), 999–1015.
Jones, O. (2006). Developing absorptive capacity in mature organizations: The change agent’s role. Management Learning, 37(3), 355–376.
Kaufmann, A., & Tödtling, F. (2001). Science-industry interaction in the process of innovation: The importance of boundary-crossing between systems. Research Policy, 30, 791–804.
Kellermanns, F. W., & Eddleston, K. A. (2004). Feuding families: When conflict does a family firm good. Entrepreneurship Theory and Practice, 28(3), 209–228.
Kellermanns, F. W., & Eddleston, K. A. (2006). Corporate entrepreneurship in family firms: A family perspective. Entrepreneurship Theory and Practice, 30(6), 809–830.
Kellermanns, F. W., Eddleston, K. A., Barnett, T., & Pearson, A. (2008). An exploratory study of family member characteristics and involvement: Effects on entrepreneurial behavior in the family firm. Family Business Review, 21(1), 1–14.
Kellermanns, F. W., Eddleston, K. A., Sarathy, R., & Murphy, F. (2012). Innovativeness in family firms: A family influence perspective. Small Business Economics, 38(1), 85–101.
Kellermanns, F. W., Eddleston, K. A., & Zellweger, T. (2012). Extending the socioemotional wealth perspective: A look at the dark side. Entrepreneurship: Theory and Practice, 36(6), 1175–1182.
Kim, Y., & Gao, F. Y. (2013). Does family involvement increase business performance? Family-longevity goals’ moderating role in Chinese family firms. Journal of Business Research, 66(2), 265–274.
König, A., Kammerlander, N., & Enders, A. (2013). The family innovator’s dilemma: How family influence affects the adoption of discontinuous technologies by incumbent firms. Academy of Management Review, 38(3), 418–441.
Kostopoulos, K., Papalexandris, A., Papachroni, M., & Ioannou, G. (2011). Absorptive capacity, innovation, and financial performance. Journal of Business Research, 64, 1335–1343.
Kraiczy, N., Hack, A., & Kellermanns, F. (2014). New product portfolio performance in family firms. Journal of Business Research, 67(6), 1065–1073.
Lane, P. J., Koka, B., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31(4), 833–863.
Le Breton-Miller, I., & Miller, D. (2011). Commentary: Family firms and the advantage of multi-temporality. Entrepreneurship: Theory and Practice, 35(6), 1171–1177.
Leal-Rodríguez, A. L., Roldán, J. L., Ariza-Montes, J. A., & Leal-Millán, A. (2014). From potential absorptive capacity to innovation outcomes in project teams: The conditional mediating role of the realized absorptive capacity in a relational learning context. International Journal of Project Management, 32, 894–907.
Leone, N. (2005). Sucessão na empresa familiar: preparando as mudanças para garantir sobrevivência no mercado globalizado. São Paulo: Atlas.
Ling, Y., & Kellermanns, F. (2010). The effects of family firm-specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies, 47(2), 322–344.
Litz, R. A., & Kleysen, R. F. (2001). Your old men shall dream dreams, your young men shall see visions: Toward a theory of family firm innovation with help from the Brubeck family. Family Business Review, 14, 335–351.
Machado, R., Grzybovski, D., Teixeira, E., & Silva, M. (2013). Governança de pequenas empresas familiares brasileiras: Aspectos a considerar no modelo adotado. Revista de Ciências da Administração, 1(1), 198–210.
Mahmoud-Jouini, S. B., & Mignon, S. (2009). Entrepreneuriat familial et stratégies de pérennité: Contribution au concept d’innovation prudentielle. Management international/International Management/Gestión Internacional, 14(1), 25–41.
Marôco, J. (2014). Análise Estatística com o SPSS Statistics. Lisbon: ReportNumber.
Miller, D., Le Breton-Miller, I., & Lester, R. H. (2012). Family firm governance, strategic conformity, and performance: Institutional vs strategic perspectives. Organization Science, 24(1), 189–209.
Miller, D., Wright, M., Le Breton-Miller, I., & Scholes, L. (2015). Resources and innovation in family businesses. California Management Review, 58(1), 20–40.
Murovec, N., & Prodan, I. (2009). Absorptive capacity, its determinants, and influence on innovation output: Cross-cultural validation of the structural model. Technovation, 29, 859–872.
Nieto, M. J., Santamaria, L., & Fernandez, Z. (2015). Understanding the innovation behavior of family firms. Journal of Small Business Management, 53(2), 382–399.
Pérez-González, F. (2006). Inherited control and firm performance. The American Economic Review, 96(5), 1559–1588.
Pittino, D., Visintin, F., Bau, M., & Mazzurna, P. (2013). Collaborative technology strategies and innovation in family firms. International Journal for Entrepreneurship and Innovation Management, 17(1–3), 8–27.
Ringle, C. M., Silva, D., & Bido, D. (2014). Modelagem de Equações Estruturais com utilização do SMARTPLS. Revista Brasileira de Marketing – ReMark, 13(2), 56–73.
Ringle, C. M., Wende, S., & Will, A. (2005). SmartPLS 2.0.M3. Hamburg: SmartPLS. Retrieved from http://www.smartpls.de
Ritala, P., & Hurmelinna-Laukkanen, P. (2013). Incremental and radical innovation in coopetition—The role of absorptive capacity and appropriability. Journal of Product Innovation Management, 30, 154–169.
Salvato, C. (2004). Predictors of entrepreneurship in family firms. Journal of Private Equity, 7(3), 68–76.
Sciascia, S., Mazzola, P., & Chirico, F. (2013). Generational involvement in the top management team of family firms: Exploring nonlinear effects on entrepreneurial orientation. Entrepreneurship Theory and Practice, 37(1), 69–85.
Sharma, P., & Salvato, C. (2011). Commentary: Exploiting and exploring new opportunities over life cycle stages of family firms. Entrepreneurship Theory and Practice, 35, 1199–1205.
Sørensen, J. B., & Stuart, T. E. (2000). Aging, obsolescence and organizational innovation. Administrative Science Quarterly, 45(1), 81–112.
Tidd, J., & Bessant, J. (2015). Gestão da Inovação [F. Nonnenmacher, Trad.] (5a ed.). Porto Alegre: Bookman.
Todorova, G., & Durisin, B. (2007). Absorptive capacity: Valuing a reconceptualization. Academy Management Review, 32(3), 774–786.
Tödtling, F., Lehner, P., & Kaufmann, A. (2009). Do different types of innovation rely on specific kinds of knowledge interactions? Technovation, 29, 59–71.
Tsai, W. (2001). Knowledge transfers in intra-organizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44(5), 996–1004.
Ussman, A. M. (2004). Empresas familiares. Lisbon: Edições Sílabo, Lda.
Van Den Bosch, F. A., Volberda, H. W., & Boer, M. D. (1999). Coevolution of firm absorptive capacity and knowledge environment: Organizational forms and combinative capabilities. Organization Science, 10(5), 551–568.
Vega-Jurado, J., Gutiérrez-Gracia, A., & Fernándes-De-Lucio, I. (2008). Analyzing the determinants of firm’s absorptive capacity: Beyond R&D. R&D Management, 38(4), 392–405.
Vega-Jurado, J., Gutiérrez-Gracia, A., Fernández-De-Lucio, I., & Manjarrés-Henríquez, L. (2008). The effect of external and internal factors on firms’ product innovation. Research Policy, 37(4), 616–632.
Vicentin, F. O. P. (2015). Alianças and a sua contribuição no desenvolvimento da capacidade de absorção and no desempenho inovador das empesas dedicadas à biotecnologia. Doctoral degree thesis, Faculdade de Economia, Administração and Contabilidade de Ribeirão Preto da Universidade de São Paulo, São Paulo, Brasil. Retrieved from http://www.teses.usp.br/teses/disponiveis/96/96132/tde-20072015-144106/pt-br.php
Vinding, A. L. (2006). Absorptive capacity and innovative performance: A human capital approach. Economics of Innovation and New Technology, 15, 507–517.
Vries, M., Carlock, R. S., & Florent-Treacy, E. (2009). A Empresa Familiar no divã: uma perspectiva psicológica. Porto Alegre, Brazil: Bookman.
Wang, C. L., Senaratne, C., & Rafiq, M. (2015). Success traps, dynamic capabilities and firm performance. British Journal of Management, 26, 26–44.
Wetzels, M., Odekerken-Schröder, G., & Oppen, C. V. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1), 177–195.
Winter, S. G. (2000). The satisfying principle in capability learning. Strategic Management Journal, 21, 981–996.
Zahra, S. A. (2003). International expansion of U.S. manufacturing family businesses: The effect of ownership and involvement. Journal of Business Venturing, 18(4), 495–512.
Zahra, S. A. (2005). Entrepreneurial risk-taking in family firms. Family Business Review, 18, 23–40.
Zahra, S. A. (2016). Developing theory-grounded family business research: Some suggestions. Journal of Family Business Strategy, 7, 3–7.
Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2), 185–203.
Zahra, S. A., Hayton, J. C., Neubaum, D. O., Dibrell, C., & Craig, J. (2008). Culture of family commitment and strategic flexibility: The moderating effect of stewardship. Entrepreneurship Theory and Practice, 32, 1035–1054.
Zahra, S. A., Hayton, J. C., & Salvato, C. (2004). Entrepreneurship in family vs. nonfamily firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory and Practice, 28, 363–381.
Zahra, S. A., Neubaum, D. O., & Larrañeta, B. (2007). Knowledge sharing and technological capabilities: The moderating role of family involvement. Journal of Business Research, 60, 1070–1079.
Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management Studies, 43(4), 917–955.
Zellweger, T. M., & Sieger, P. (2012). Entrepreneurial orientation in long-lived family firms. Small Business Economics, 38(1), 67–84.
Acknowledgments
This study was financed in part by the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior-Brasil (CAPES) Finance Code 001, and NECE—Research Unit in Business Sciences funded by the Multiannual Funding Programme of R&D Centres of Fundação para a Ciência e a Tecnologia (FCT), under the project “UID/GES/04630/2013.”
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Ferreira, G.C., Ferreira, J.M. (2020). Generational Diversity as a Moderator for the Relationship Between Absorptive Capacity and Innovation Performance at Family Firms. In: Saiz-Álvarez, J.M., Leitão, J., Palma-Ruiz, J.M. (eds) Entrepreneurship and Family Business Vitality. Studies on Entrepreneurship, Structural Change and Industrial Dynamics. Springer, Cham. https://doi.org/10.1007/978-3-030-15526-1_6
Download citation
DOI: https://doi.org/10.1007/978-3-030-15526-1_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-15525-4
Online ISBN: 978-3-030-15526-1
eBook Packages: Business and ManagementBusiness and Management (R0)