Innovation in Family Firms: Critical Review of Theoretical and Empirical Literature

Abstract

This chapter complements the analysis of the idiosyncratic features of family firms developed in Chap. 2 by leveraging innovation literature, in an effort to provide a comprehensive, integrative review of existing research on the topic. This chapter introduces the role and characteristics of technological innovation within contemporary firms, as well as the links among technological innovation, value creation, competitive advantage, and firm survival. Starting from this framework, it maps the most critical decision-making elements associated with the management of technological innovation by family firms. The comparison of several, often divergent viewpoints from different streams of literature produces a systematic account of theories and empirical findings pertaining to the management of innovation in family firms.