Family Ownership and the Export Performance of SMEs: The Mediating Role of Innovation Capabilities

Abstract

This study examines the relationship between family ownership and export performance, and innovation capabilities as a mediation variable. We conceptualize our study to “familiarity” as the family system interaction in business activity. However, the principle of internationalization in SMEs has a consequences, including an increase in innovative behavior. To fill this gap, this study offers innovation capabilities to SMEs. Using 172 SMEs in Malang Regency, Indonesia, this study found that there is a positive relationship between family ownership and innovation capabilities with export performance. We also find that this relationship is mediated by innovation capabilities. In the end, we conducted a discussion and concluded the findings.