Innovation heterogeneity in family firms: Evidence from the date industry in Saudi Arabia

Abstract

Researchers have argued that family firm innovation is paradoxical in nature, in that family firms often display less innovation than their nonfamily counterparts, yet they are able to be more innovative. The aim of this article is to unpack this paradox by exploring how differences in family firms’ ability (discretion and resources) and willingness (economic and noneconomic) affect their innovation activities. We adopt a qualitative, interpretive methodology based on four case studies of Saudi family firms operating in the indigenous date industry. Our findings emphasize the importance of having all four sources of ability and willingness in order for innovation to occur and how, when the new generation enters the business, the family firm’s innovation posture changes to either ‘lagging’ or ‘reviving’. By exploring innovation in the date sector in Saudi Arabia, we contribute to the ability–willingness paradox by distinguishing between the different sources of ability and willingness and add to an emerging narrative that acknowledges the integration of past knowledge with new innovative practices as an important and unique mechanism by which family firms can harness innovation.