Process innovation in family firms: Family involvement in management, R&D collaboration with suppliers, and technology protection

Abstract

Drawing on insights from the upper echelon theory, this article aims to examine the impact of family involvement in management on process innovation within family firms, considering the mediating role of R&D collaboration with suppliers and the moderating role of technology protection. Conducting a panel data analysis on 5,332 firm-year observations of Spanish manufacturing family firms for the period 2007–2016, we find that the negative relationship between family involvement in management and process innovation is mediated by R&D collaboration with suppliers. Furthermore, we find that the negative effect of family involvement in management on R&D collaboration with suppliers and ultimately on process innovation is mitigated by technology protection and even becomes positive for high levels of technology protection.