Abstract
We draw from resource orchestration and socioemotional wealth (SEW) arguments to examine radical innovation in multifamily firms. We theorize that the weak coordination mechanism associated with multifamily ownership has a negative effect on the positive SEW-radical innovation relationship. Additionally, we argue that low generational involvement – the number of family generations involved simultaneously in the family firm's top management team – mitigates the negative moderating effect of multifamily ownership. Low generational involvement is a mobilizing mechanism that ensures that the family firm uses its SEW to produce radical innovation. We use a sample of Spanish firms to test our expectations. Our results show that firms realize the positive effect of SEW on radical innovation in concert with the leadership governance mechanism of multifamily ownership and low generational involvement. These results are important in that evidence suggests that radical innovation plays a strong role in family firms' long-term survival, success, and renewal. We conclude our paper with a discussion of the study's theoretical contributions and opportunities for future research.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callSimilar Papers
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
