Family firm innovation strategy: contradictions and tradition

Abstract

PurposeWhen studying innovation in family firms, several contradictions appear, as the family and the firm represent different social systems that follow different rules and expectations. This paper aims to argue that a deeper understanding and effective management of those paradoxes is crucial for the family firm’s innovation performance.Design/methodology/approachUsing theory-building principles, this paper has an abductive character; new research propositions are offered to provide insights into the apparently paradoxical aspects of successfully managing a family firm’s innovation strategy.FindingsThree contradictions are presented and discussed: first, the family can be a hazard and source for the firm; second, family members acting as shareholder and investor; and third, established practice and innovation issues may compete against each other in the quest to sustainably rejuvenate the organization. Inferences are drawn from these apparent contradictions concerning family firm management, providing a basis to form propositions that effectively support innovation.Originality/valueThis paper provides a paradoxical perspective on the innovation phenomenon in family firms and offers practical implications to help leaders better shape their organization’s innovation strategy.