Innovation Dynamics in Family Firms

Abstract

This chapter explores the significance of incremental innovation in family-owned businesses, examining their engagement, the factors shaping their innovation behavior, and the practical implications for stakeholders. Content analysis delves into various facets of entrepreneurial activities within these businesses, offering insights into their innovation processes and challenges. The findings highlight the pivotal role of existing and new knowledge in driving incremental innovation. Despite challenges such as risk aversion and succession planning, family firms leverage their unique resources to maintain a competitive edge. This chapter contributes to understanding how family-owned businesses engage in incremental innovation and its implications for long-term success and sustainability. Future research could explore wealth creation dynamics and the influence of organizational culture on innovation within these firms.