The Contact-Hitting R&D Strategy of Family Firms in the Japanese Pharmaceutical Industry. (September 2019)

• Record Type: Journal Article
• Authors: Asaba, Shigeru; Wada, Tetsuo
• Is Part Of: Family business review. Volume 32:Number 3(2019)
• Page Start: 277
• Page End: 295
• Publication Date: 2019-09
• Subjects: innovation productivity -- signature moves -- contact-hitting R&D strategy -- frequency distribution over innovation value; Family-owned business enterprises -- United States -- Periodicals; Home labor -- United States -- Periodicals; Small business -- United States -- Periodicals; New business enterprises -- United States -- Periodicals; 658.045
• DOI: 10.1177/0894486519852449
• Languages: English
• ISSNs: 0894-4865

Abstract

This article addresses the following question: How do family firms investing less in research and development (R&D) than nonfamily firms compete in R&D intensive industries? Using Japanese pharmaceutical industry data, we found that family firms produce more patents per R&D than nonfamily firms but are not biased toward low-value innovations. Further analyses of the distribution over innovation value suggested that family firms adopt a "contact-hitting R&D strategy, " avoiding radical innovations and pursuing incremental innovations compatible with their signature moves: innovation through tradition and narrow and internal search and resulting in may low-value innovations and a few mid or high-value innovations.