Family Management and Firm Performance: The Interaction Effect of Technological Innovation Efficiency

Abstract

Understanding the relationship between family management and firm performance has emerged as one of the most prominent issues for both scholars and professionals in the family firm research field. This chapter aims to shed light on this theme by analyzing how family members in top management teams (TMT) impact on firm performance. Moreover, this chapter adds the effect of an interaction factor that has become essential for the improvement of firms’ competitiveness: technological innovation efficiency. By conducting a panel data analysis on 1154 observations of private manufacturing firms over the period 2010–2015, the findings reveal a negative impact of family members in TMT on firm performance. The empirical analysis also reveals that technological innovation efficiency weakens the negative effect of family presence in TMT on firm performance.