Abstract
Research reveals inconsistent findings related to the effect of family ownership on firm innovation. Drawing upon a socioemotional wealth framework, this study sheds light on how family ownership affects firm innovation when considering inter-organization cooperation as a strategic option. We hypothesize that inter- organization cooperation moderates the negative relationship between family ownership and firm innovation and that the moderating effect depends upon the type of cooperative partner and type of cooperative activity. Results support the notion that the negative impact of family ownership on firm innovation can be mitigated by a firm’s inter-organization cooperation and that both the type of cooperative partner and type of activity both demonstrate moderating effects. Contributions and future research directions are also discussed.
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