Managers' emotion-regulation capabilities and family firm innovativeness: a dynamic managerial capability view

Abstract

PurposeWhile previous studies have proved the significance of family firm innovativeness (FFI), the question of how the emotion-regulation capabilities of family business managers affect FFI still remains open. This paper aims to examine the impact of the emotion-regulation capabilities of family business managers on FFI moderated by the family involvement in business management.Design/methodology/approachThe present study is based on a quantitative research design. Data were collected with the help of a telephone survey. Overall, 192 family firms were surveyed, and the results were analysed using structural equation modelling (SEM).FindingsThe findings indicate that managers' emotion-regulation capabilities (independent variable) positively impact FFI (dependent variable). The research results also indicate that having more family members involved in the business (moderating variable) can lead to better innovation outcomes, assuming these family managers have sufficient emotion-regulating capabilities.Research limitations/implicationsThe research context could be broadened by differentiating between the industries in which family firms operate. This could aid a better understanding of the challenges, opportunities and market trends in different sectors. Future research might also include more diverse countries with deep family business traditions, strengthening the robustness of the findings across more varied contexts.Originality/valueUsing a multi-level perspective, this study contributes to the dynamic managerial capabilities and family business literature by showing that, in an environment where familial relationships can affect working relationships, the ability of managers to control their emotions and others' emotions can be a critical managerial resource that impacts FFI.