Does Knowing "Who Knows What" Matter for Family Firm Innovation? Insights From Transactive Memory System Theory. (June 2021)

• Record Type: Journal Article
• Authors: Madison, Kristen; Daspit, Joshua J.; Marett, Emily Garrigues
• Is Part Of: Family business review. Volume 34:Number 2(2021)
• Page Start: 168
• Page End: 192
• Publication Date: 2021-06
• Subjects: transactive memory systems -- cognitive psychology -- family firm innovation -- nonfamily employees -- knowledge resources -- communication -- dispersion modeling -- triadic data; 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: 10.1177/0894486520912879
• Languages: English
• ISSNs: 0894-4865

Abstract

We extend transactive memory systems theory from psychology to examine the cognitive interdependence of family and nonfamily employees and its effects on family firm innovation. Using triadic data and dispersion modeling, we find that innovation is enhanced when family and nonfamily employees communicate and when they have a shared understanding of "who knows what"; however, we find unexpectedly that the communication effects differ for family and nonfamily employees, hindering the development of shared knowledge perceptions needed for enhanced innovation. We demonstrate the value in applying psychology-based research to family firm investigations and in investigating microfoundations of family firm innovation.