Abstract

Innovation investment is an important factor for family firms to keep sustainable competitive advantage. This paper aimstoexplorehow differentiated non-family business members’ succession styles affect the level of innovation investment in family firms and the moderating role of family authority. The results of this study illustrated that radical non-family business members lower the innovation investment in family firms compared to progressive non-family business members. The relationship between non-family business members’ succession styles and their innovation investment in family firms is moderated by family authority. The weakening effect of radical successors’ innovation investment is more significant in firms with high family member authority and non-family founding member authority. Further, research shows that the negative effect of radical successors on innovation investment in family firms decreases significantly after 3 years, and that its weakening effect is more pronounced in larger firms and in firms that have been founded for a longer time.

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