Innovations in family firms: a study of owner-managers’ knowledge development

Abstract

PurposeThe purpose of this paper is to identify the relationship between family firms’ innovation output and the continuous knowledge development of owner-managers. Moreover, the study aims to investigate the effect of the level of owner-managers’ educational background on family firms’ innovation.Design/methodology/approachThe data originate from a primary research conducted in Poland. A log-linear analysis was used to verify the hypotheses.FindingsThe findings demonstrate that the positive relationship between the higher levels of education of owner-managers and the innovation output of family firms does not exist. However, the innovativeness of family firms is determined by the continuous development of owner-managers’ knowledge. Family firms whose owner-managers continuously expand their knowledge introduce significantly more product and marketing innovations. This relationship appears independent of firm’s size, type of business activity and owner-managers’ educational level.Practical implicationsUnderstanding how the continuous development of owner-managers’ knowledge influence the firm’s innovation output is potentially valuable for managers of family firms. The findings offer also practical suggestions for policymakers on how to support structures that aim to enhance innovation in family enterprises.Originality/valueThis study contributes to the family business literature by presenting quantitative findings describing links between family firms’ innovation outputs and continuous knowledge development of owner-managers. Thus, the study broadens knowledge on factors determining innovation of family firms and influencing family business heterogeneity.