Combining Internal and External R&D: The Effects on Innovation Performance in Family and Nonfamily Firms. (September 2020)

• Record Type: Journal Article
• Authors: Muñoz-Bullón, Fernando; Sanchez-Bueno, Maria J.; De Massis, Alfredo
• Is Part Of: Entrepreneurship theory and practice. Volume 44:Number 5(2020)
• Page Start: 996
• Page End: 1031
• Publication Date: 2020-09
• Subjects: external R&D -- family firm -- innovation performance -- internal R&D -- open innovation -- absorptive capacity; Small business -- Periodicals; New business enterprises -- Periodicals; Entrepreneurship -- Periodicals; 658.421
• DOI: 10.1177/1042258719879674
• Languages: English
• ISSNs: 1042-2587

Abstract

We examine the effect of combining internal and external R&D loci on innovation performance in family firms (FF) and nonfamily firms (non-FFs). Our longitudinal analysis of 27, 438 firm-year observations of Spanish manufacturing firms from 1990 to 2016 shows that FFs can better exploit the benefits of simultaneously engaging in internal and external R&D activities, leading to a positive effect on innovation performance. Moreover, the relationship between combined internal and external R&D and innovation performance in FFs is contingent upon firm economic performance. By pointing to the importance of taking into account the combination of internal and external R&D loci to foster innovation in FFs, we challenge current family business innovation research.