Is innovativeness always beneficial in family SMEs? The moderating role of generational stage
by Jonathan Bauweraerts; Olivier Colot
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 48, No. 2, 2023

Abstract: Many studies suggest that innovativeness is positively related to performance in small- and medium-sized family enterprises (family SMEs); however, empirical and theoretical controversies surround this problematic. This study proposes and tests an integrative framework connecting two explanations for these inconsistencies: the innovativeness-performance relationship is curvilinear, and the performance implications of innovativeness are contingent upon the firm's generational stage. Drawing on the socio-emotional wealth theory, the results from a dataset of 204 Belgian family SMEs show an inverted U-shaped relationship between innovativeness and performance. Furthermore, the generational stage of the firm negatively moderates this curvilinear relationship.

Online publication date: Wed, 18-Jan-2023

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