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How Does Family Succession Impact Family Firms' Innovation?
Ballal, Juili Milind,Bapat, Varadraj Asian Society for Innovation and Policy 2019 Asian Journal of Innovation and Policy Vol.8 No.2
Family business is the oldest and the most prevalent type of entity in the world. In India, 85% of the enterprises are owned and/or managed by families, contributing to two-third of GDP. Thus the survival of family firms, which also generates 79% of private sector employment, is of paramount importance. Effective succession planning and innovation to gain competitive edge are the two key ways to ensure family firm survival. In this paper, the interplay between family succession and innovation is qualitatively studied using case study approach. Successors and Predecessors are interviewed to gain insights in the areas of succession planning and innovation. It is observed that family succession has a positive relationship with innovation, i.e. the presence of founding family members in the ownership and/or management of the enterprise has a positive influence on innovation tendency of the family firms. The findings contribute to the family business literature on succession planning and innovation, and their inter-relationship.
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How Does Family Succession Impact Family Firms’ Innovation?
Juili Milind Ballal,Varadraj Bapat 아시아기술혁신학회 2019 Asian Journal of Innovation and Policy Vol.8 No.2
Family business is the oldest and the most prevalent type of entity in the world. In India, 85% of the enterprises are owned and/or managed by families, contributing to two-third of GDP. Thus the survival of family firms, which also generates 79% of private sector employment, is of paramount importance. Effective succession planning and innovation to gain competitive edge are the two key ways to ensure family firm survival. In this paper, the interplay between family succession and innovation is qualitatively studied using case study approach. Successors and Predecessors are interviewed to gain insights in the areas of succession planning and innovation. It is observed that family succession has a positive relationship with innovation, i.e. the presence of founding family members in the ownership and/or management of the enterprise has a positive influence on innovation tendency of the family firms. The findings contribute to the family business literature on succession planning and innovation, and their inter-relationship.
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