The Role of Innovation in Small and Medium-Sized Family Firms: A Literature Review

A chi es o Business Resea ch – Vol. 9, No. 5 Publica ion Da e: May 25, 2021 DOI:10.14738/ab .95.10221. Zizla sky, O., & Janicko a, N. (2021). The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew. A chi es o Business Resea ch, 9(5). 102-120. Se ices o Science and Educa ion – Uni ed Kingdom The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew Ond ej Zizla sky Facul y o Business and Managemen , B no Uni e si y o Technology B no, Czech Republic Nikola Janicko a Facul y o Business and Managemen , B no Uni e si y o Technology B no, Czech Republic ABSTRACT This a icle builds on exis ing amily business esea ch conduc ed wo ldwide and embeds he esea ch esul s in he Czech con ex o po ay he Czech Republic as a c i ically impo an con ex o ex ending ou knowledge on impo an amily i ms’ opics. In his a icle, we p esen a sys ema ic e iew and in eg a ion o 69 a icles published in pee - e iewed jou nals by Else ie , Eme ald, Wiley and o he s om 2015 o 2021 in o de o answe wo esea ch ques ions: wha is he ole o inno a ion in SME amily i ms and wha d i es he inno a ion in amily i ms? Speci ically, he con en o he a icle discusses he new de ini ion o amily i m in he Czech Republic; he ela ionship be ween inno a ion and amily i m g ow h; and some con ex ual ac o s ha migh a ec he inno a ions in he Czech SME amily i ms: abili y and willingness pa adox, socioemo ional weal h, and amiliness. The insigh s o his e iew a e used o de elop sugges ions o u u e esea ch in se ing he alue o amily i m whe e inno a ion can play an essen ial ole as one o he co e alue d i e s. Keywo ds: Inno a ion, amily i m, small and medium-sized en e p ises (SMEs), alue d i e , business inno a ion. INTRODUCTION I appea s ha he concep o amily i ms is o opical in e es no only in he Czech Republic bu wo ldwide. Acco ding o global esea ch by he Family Fi m Ins i u e, amily i ms gene a e 70-90% o he wo ld's GDP, p o ide employmen o 60-80%, a e mo e esilien o c ises, a e based on high esponsibili y o hei su oundings, wi h in es men s in hese i ms emain in he egions and o m he basis o hei se ice (Family Fi m Ins i u e, 2018). Simila pe spec i es emana e wi hin he Eu opean Union whe e amily i ms o m he basis o di e en coun ies’ economy and a e he co ne s one o esponsible business owne ship and long- e m business in es men . In ecen yea s, he in e es o he Eu opean ins i u ions in his ype o business has g own (Bo e o e al., 2015; Eu opean Family Business Ba ome e , 2018). Mos Eu opean amily i ms a e Small and Medium-sized En e p ises (SMEs), bu mul ina ional co po a ions a e no he excep ion. Nine ou o en businesses belong o he SME ca ego y and make up nea ly 70 % o jobs (EP, 2015). Con ibu ions made om business i ms a e conside ed impo an o g ow h in a eas such as compe i i eness and employmen . 103 Zizla sky, O., & Janicko a, N. (2021). The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew. A chi es o Business Resea ch, 9(5). 102-120. URL: h p://dx.doi.o g/10.14738/ab .95.10221 SMEs in he Czech Republic, o example, o m a subs an ial pa o he coun y’s domes ic economy. Acco ding o he Minis y o Indus y and T ade, he sha e o SMEs in he o al numbe o ac i e business en i ies in he Czech Republic in 2017 was 99.8%. The numbe o inno a i e SMEs is also inc easing in e ms o expendi u e and he use o subsidies (Minis y o Indus y and T ade, 2018). A close in es iga ion e eals ha app oxima ely 87% o hese p i a e companies in he Czech Republic a e amily i ms. This sugges s ha amily i ms play a much mo e impo an ole in he coun y’s economy han p e iously hough (Eu opean Family Business, 2018). Family i ms a e ying o balance he needs o amily and business needs, p io i izing socio-economic weal h o e a na ow ocus on inancial goals. These i ms hus play a i al ole in p omo ing wo k-li e balance, a e ypical o highe employee ca e, low s a u no e , suppo o employee educa ion and o e all social esponsibili y in ela ion o he en i onmen and egion in which i ope a es. Ini ia i es s a ed ecen ly in he Czech Republic o in es iga e in mo e dep h he concep o he amily i m and o add ess any associa ed p oblems. A p ojec known as ‘Family Fi ms: Value D i e s and Value De e mina ion in he P ocess o Succession’ (No TL02000434) was launched in 2019 wi h he suppo om he Technology Agency o he Czech Republic. The p ojec p esen s a sys emic app oach o de e mine he alue o a speci ic ype o business, based on he iden i ica ion o c i ical alue gene a o s, conside ing he speci ici ies o amily i ms. I s main objec i e is o c ea e a ‘ i ual me hodology’ o de e mine he alue o amily SMEs. The de ini ion o gene a o s o he alue o amily i ms – accele a ion and inno a ion p ocedu es as ools o managing hei alue – will be a s a ing poin o he design and de elopmen o his me hodology. Applying he concep and he ools and echniques associa ed wi h an inno a ion app oach can acili a e his p ocess. This esea ch in es iga es he impo ance inno a ion plays in amily i ms, o example, by s eng hening he posi ion o he company. This enables pe manen imp o emen s o cus ome sa is ac ion. I places pa icula emphasis on secu ing s akeholde equi emen s o success ul de elopmen and alue g ow h. To help ul il he esea ch main aim and o p o ide new insigh s on he ole o inno a ion, his s udy add esses he ollowing main esea ch ques ion: ‘Wha is he ole o inno a ion in SME amily i ms?’ The scien i ic aim o he pape is o gain knowledge and analyse he p esen s a us o how inno a i e ac i i ies can ac as he ca alys o d i e o wa d he alue amily i ms p o ide (by e iewing bo h Czech and o eign li e a u e. The objec i e o he a icle is o collec i e e idence ha sugges s ha he e is a co ela ion be ween how success ul amily i ms a e and he le el o inno a ion hey engage in. In addi ion, he pape is also impo an in e ms o mul idisciplina y app oach o abo e-men ioned esea ch p ojec . The me hods o co po a e go e nance, social sciences, s a egic and inno a ion managemen , inance and s a is ics will be linked oge he in o de o iden i y co e alue d i e s o SME amily i ms. Sec ion 2 p o ides a desc ip ion o he esea ch me hodology. This is ollowed by an o e iew o esea ch on amily i m and inno a ion, wi h pa icula emphasis on he de ini ion o he amily i m in he Czech Republic. Then we compa e and con as he impac o inno a ion in amily and non- amily i ms (see Table 2). The e is enough heo e ical e idence o s a e ha inno a ion could be di e en in amily and non- amily i ms, o example amily i ms’ unique and dis inc i e beha iou , he excep ional bundle o esou ces and capabili ies esul ing om 104 Vol. 9, Issue 5, May-2021 A chi es o Business Resea ch (ABR) Se ices o Science and Educa ion – Uni ed Kingdom in e ac ions be ween he amily (o indi idual membe s), and he business en i y. Sec ion 3 e iews he li e a u e and p esen s a b ie backg ound and main cha ac e is ics o amily i m beha iou . I is ocused on desc ip ion o he main idiosync asies o amily i ms such as ‘ amily inno a ion dilemma’, ‘Socioemo ional Weal h’ o ‘Willingness-abili y pa adox’. Finally, he las sec ion summa izes he indings and gi es a p oposal o u u e esea ch. RESEARCH METHODOLOGY AND DATA This sec ion desc ibes he esea ch p ocess o an e idence-based sys ema ic li e a u e e iew based on T an ield e al. (2003) and Keupp e al. (2012): 1 Planning he e iew 2 Conduc ing he e iew (da a collec ion and analysis) 3 Repo ing and dissemina ing he e iew (da a syn hesis) In his sys ema ic e iew, he p o essional li e a u e, and pa icula ly o eign esou ces, p o ided a sou ce o seconda y da a. Ha ing ou lined he a ionale and p oposed me hods o his e iew, he s age is se o iden i y ele an s udies explici and ep oducible selec ion c i e ia. Planning he Re iew This s age in ol es he de ini ion o keywo ds o he esea ch s ing o ga he ele an li e a u e dealing wi h subjec unde in es iga ion. In he i s ins ance, he sea ch engine Google Schola was used as i co e s a b oade ange o academic sou ces. The li e a u e esea ch was conduc ed by using he ollowing se o keywo ds: “ amily i m”, “ amily business”, “ amily owne ship”, and “small and medium-sized en e p ises”. We combined hese key e ms wi h ollowing e ms ela ed o inno a ion and alue managemen a iables: “inno a ion”, “inno a ion business”, “change” “pe o mance”, “e iciency” and “ alue d i e ”. The li e a u e e iew is es ic ed o he pe iod om he beginning o 2015 h ough he p esence o 2021. Using hese key e ms in English Google Schola deli e ed ca 63,400 esul s. This amoun o esul s indica es ha he subjec ma e unde in es iga ion is g ea o in e es o he schola s. Fo he nex sea ch he ollowing inclusion c i e ia we e applied: • A ailabili y in Thomson Reu e s Web o Science and/o Else ie Scopus da abases • A icles in English • Pee - e iewed a icles • A icle con aining one o he keywo ds in he i le, abs ac o keywo ds S udies ou o his scope we e excluded om his e iew. Especially books, book chap e s, and con e ence pape s we e excluded in he nex phase o da a collec ion p ocess due o owing o a iabili y in pee - e iew p ocesses and es ic ions in a ailabili y. Da a Collec ion In second ins ance, he li e a u e e iew was limi ed o a icles om pee - e iewed jou nals ha publish mos o ele an and up- o-da e esea ch. The sea ch was pe o med in he majo espec ed scien i ic elec onic da abases such as Else ie Scopus and Thomson Reu e s Web o Science by using abo e-men ioned key e ms. These da abases we e selec ed due o hei ad anced web sea ch mechanisms, high olume o indexed publica ions and p o en ele ance. To be po en ially included in he e iew, he i le o he a icle had o con ain a keywo d o 105 Zizla sky, O., & Janicko a, N. (2021). The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew. A chi es o Business Resea ch, 9(5). 102-120. URL: h p://dx.doi.o g/10.14738/ab .95.10221 combina ion om he same se s o keywo ds. He e again he same pe iod o 2015 ill 2021 was conside ed. In o de o be mo e igo ous in ou e iew, an addi ional sea ch was conduc ed o h ee leading jou nals ha almos exclusi ely add ess amily business opics, using he same c i e ia as p e iously s a ed: Family Business Re iew, Jou nal o Family Business S a egy and Jou nal o Family Business Managemen . The ele ance o he iden i ied a icles was ensu ed by eading all abs ac and compa ed wi h ela ed goals o he esea ch p ojec . Using con en analysis, wo esea che s ead abs ac s o all iden i ied pape s, and independen ly classi ied hem in he main esea ch ca ego ies (inno a ion/change, amily i m, pe o mance/e iciency). We buil a sp eadshee wi h he sco ing sys em: 0.0 (no i ), 0.5 (pa ially), and 1.0 ( i ). No e ha his quali y anking was an in e nal me ic o selec ing pape s o his s udy, no e lec ing any compa ison amongs s udies o au ho s. Nex , he indi idual e alua ions we e compa ed and syn hesized, and in case o disag eemen , he issue was discussed and esol ed. In o al 31 a icles (30 by o eign and 1 Czech au ho ) we e chosen which seemed o be mos ele an o he esea ched issue and u u e use in he upcoming esea ch. Each au ho g asps he subjec ma e in a di e en way, so he e is a g ea a ie y o iews. Da a Analysis A e collec ing an ini ial se o s udies, all a icles in he sample we e analysed, da a was ex ac ed and documen ed independen ly by he au ho s and hen he indings we e compa ed and econciled. When e iewing he indings, au ho s applied s ic c i e ia o assess he quali y o published pape s. The c i e ia include: coun y o esea ch, size and quali y o esea ch sample in e ms o ep esen a ion, he s eng h o he conclusions, and he link o objec i es o ou esea ch p ojec in he Czech Republic. Fo his pu pose, a da a ex ac ion o m was p epa ed o collec in o ma ion on au ho s and quali y c i e ia. Nex , he indi idual assessmen s we e compa ed and analysed, and in case o disag eemen , he issue was discussed and esol ed. Some pape s we e emo ed om he esea ch sample. In addi ion, we did backwa d- acking o all ele an e e ences epo ed in a icles. This led o he iden i ica ion o addi ional pape s and amoun ed o a o al o 69 a icles. Da a Syn hesis This pa o he esea ch is he p ima y alue-added p oduc o a e iew p ocess, since i p oduces new knowledge based on ho ough da a collec ion and ca e ul analysis. In ou s udy a syn hesis is used o design o u u e esea ch in a ea o inno a ion as a alue d i e in amily SMEs businesses. We used mind mapping me hod o map ou he main hemes, pe spec i es and dimensions o inno a ion in amily i ms. EMPIRICAL FINDINGS AND DISCUSSION This sec ion p o ides an o e iew and discussion abou main poin s o each esea ch s udy unde in es iga ion om di e en coun ies. The main ou pu s o each s udy a e p esen ed in Appendix 1. Ou analysis o 69 jou nal publica ions on inno a ion in amily i ms shows ha his opic has ecen ly a ac ed he a en ion o espec ed scien i ic jou nals ha ocus on managemen and business, such as he Jou nal o Family Business S a egy (13 a icles), he Family Business Re iew (8 a icles), he En ep eneu ship Theo y and P ac ice (6 a icles), he Jou nal o Small Business Managemen (4 a icles), he Academy o Managemen Jou nal, he Cali o nia 106 Vol. 9, Issue 5, May-2021 A chi es o Business Resea ch (ABR) Se ices o Science and Educa ion – Uni ed Kingdom Managemen Re iew, he Jou nal o P oduc Inno a ion Managemen , and he S a egic Managemen Jou nal (3 a icles), he Eu opean Jou nal o Inno a ion Managemen , and he Eu opean Jou nal o Inno a ion Managemen (2 a icles). 22 a icles we e published in a ious jou nal (see Table 1). Table 1 Sou ce jou nals o pape s Jou nal name Numbe o pape s % % Accumula ed Academy o Managemen Jou nal 3 4.35% 4.35% Cali o nia Managemen Re iew 3 4.35% 8.70% En ep eneu ship Theo y and P ac ice 6 8.70% 17.39% Eu opean Jou nal o Inno a ion Managemen 2 2.90% 20.29% Family Business Re iew 8 11.59% 31.88% In e na ional Jou nal o En ep eneu ship and Inno a ion Managemen 2 2.90% 34.78% Jou nal o Family Business S a egy 13 18.84% 53.62% Jou nal o P oduc Inno a ion Managemen 3 4.35% 57.97% Jou nal o Small Business Managemen 4 5.80% 63.77% S a egic Managemen Jou nal 3 4.35% 68.12% Jou nal wi h only 1 pape 22 100.00% In addi ion, he indings om he sys emic li e a u e e iew and s udy he e olu ion o esea ch in a ea o inno a ion in amily i ms om 2015 onwa ds, a e p esen ed o iden i y he la es ends. They a e classi ied unde hei main opics. The p ima y de ini ions o wha is mean by ‘ amily i m’ (Czech and in e na ional pe spec i es) a e p esen ed nex . Family Fi m De ini ion in he Czech Republic An o e iew o amily i m in e na ional de ini ions om 1960 o 2017 was published by Diaz- Mo iana e al. (2019). Among hese de ini ions, ypical ea u es o amily i m a e iden i ied as ollows: 1 Majo i y pa icipa ion in owne ship by membe s o he same amily o a small numbe o amilies (e.g. Leach, 2007) 2 Family in ol emen in he boa d o di ec o s o op managemen (e.g. De Massis e al., 2012) 3 Exis ence o a amily membe successo (Gagné e al., 2011) 4 P esence o wo o mo e amily- ela ed sha eholde s (Belenzon e al., 2016) 5 Pe cen age o decision-making igh s (Lei e s o & Rau, 2014) Compa ed o non amily en e p ises, amily fi ms ha e unique cha ac e is ics (see Sec ions 3.3 o 3.5) and explaining diffe ences in amily fi m beha iou and ou comes is a co e objec i e o amily fi m esea ch (Ch isman e al., 2005). The s uc u al coupling o he amily and fi m yields a se o inimi able esou ces ha po en ially posi ion he amily fi m o g ow h and su i al (F ank e al., 2010). In he Czech Republic, as in o he pos -communis CEE coun ies, he amily i m has been in e up ed and a en ion has been u ned owa ds i in he las ew yea s in connec ion wi h he ongoing i s gene a ional in a- amily succession. Mos o hese companies we e o med 107 Zizla sky, O., & Janicko a, N. (2021). The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew. A chi es o Business Resea ch, 9(5). 102-120. URL: h p://dx.doi.o g/10.14738/ab .95.10221 a e he e olu ion in he 1990s. In he 1980s, hei ounde s lea ned om hei own mis akes how o conduc business p o essionally. Companies g ew o ganically as he owne s, mos ly spouses, g ew p o essionally wi h hem. Despi e he appa en lack o business educa ion, hese en ep eneu s and hei companies ha e now g own in o s ong local playe s o ha e in many cases buil a s ong in e na ional epu a ion. Focusing on mo e ecen de elopmen s in he Czech Republic, amily i ms ha e seen he highes sales g ow h since 2007. Mo e han 80% o i ms expec o g ow hei e enues in he u u e bu hey mus p epa e o he undamen al challenges o he yea s o come. Fo example, hey will ha e o ace p essu e o equen inno a ion o echnological change. Fi s - gene a ion amily i ms a e g owing he as es , wi h clea ly se co po a e alues, ision and an elabo a e s a egy (PwC, 2018). I espec i e he impo ance amily i m o Czech economy (see In oduc ion), he e was no clea de ini ion o his kind o business un il 2019. The de ini ion o amily i m was app o ed by he Go e nmen o he Czech Republic, hus making he Czech Republic one o he s a es whe e amily companies a e clea ly de ined. Acco ding o his de ini ion, a business co po a ion o ade is conside ed a amily i m (Minis y o Indus y and T ade, 2019). 1 A amily i m is a business co po a ion in which an absolu e numbe o associa es a e composed o membe s o a single amily and a leas one membe o ha amily is i s s a u o y body o in which membe s o one amily di ec ly o indi ec ly pe o m a majo i y o ing igh s and a leas one membe o ha amily is a membe o he s a u o y body o ha comme cial co po a ion. 2 A amily i m is a business in which a leas wo membe s o one amily pa icipa e in hei wo k o p ope y and a leas one o he membe s o ha amily holds a ade o o he simila au ho isa ion o is en i led o business o ano he eason. 3 Fo he pu poses o a amily unde aking, join ly wo king spouses o pa ne s o a leas one o he spouses o pa ne s and hei ela i es shall be conside ed as membe s o he Family Fi m un il he hi d deg ee o he pe son wi h he spouses o pa ne s wi h he spouses o pa ne s o he second deg ee, ela i es in a s aigh line o siblings. I he e is a pe son among hem who is no ully a bi a y, hey a e ep esen ed by a legal ep esen a i e when o ing, i he is a mino , o he wise a gua dian. Inno a ion in Family e sus Non- amily Fi ms Inno a ion is widely acknowledged as an impo an de e minan o sus ained pe o mance (Kelle manns, e al., 2012b) and a key d i e o economic g ow h o o ganiza ions and economies globally (Fe ani a e al., 2017; Miglio i e al. 2020) and in he Czech Republic (e.g. Bocko a & Zizla sky, 2016; B ecko a, 2017). In ecen yea s, inno a ion in amily i ms as a esea ch ield has become a opic o g owing in e es (e.g. Alayo e al., 2021; Du an e al., 2016; Filse e al., 2016; Sau abh e al., 2017). Inno a ion is ecognised as one o he main s a egic ins umen s o ensu ing economic p ospe i y and he su i al o he i m. The need o inno a ion seems o be e en g ea e in amily businesses, wi h he ision o con inui y and ansgene a ional succession being one o hei main cha ac e is ics. Despi e inc easing schola ly in e es in he opic o inno a ion in amily i ms, ou unde s anding is s ill incomple e and inconsis en . While some s udies 108 Vol. 9, Issue 5, May-2021 A chi es o Business Resea ch (ABR) Se ices o Science and Educa ion – Uni ed Kingdom p o ide empi ical e idence o nega i e associa ions be ween i ms and inno a ion, o he s ind ou posi i e e ec s (Table 2). The con lic ing esul s migh pa ly be due o he o e simpli ied measu emen o amily in luence by me ely conside ing po en ial amily in luence h ough owne ship and con ol. Table 2 Inno a ion in amily i ms Posi i e co ela ion Nega i e co ela ion Inno a ion in amily i ms Albe i & Pizu no (2013) Du an e al. (2015) Ga ud e al. (2013) Hauck & P ügl (2015) Hsu & Chang (2011) König e al. (2013) Llach & No dq is (2010) Röd (2016) Muñoz-Bullón & Sanchez-Bueno (2011) Uhlande e al. (2013) Block (2012) Chen & Hsu (2009) Chin e al. (2009) Cza ni zki & K a (2009) Ko la e al. (2013) Muna i e al. (2010) Some au ho s hold s ong iews ha he de e minan s and e ec s o inno a ion, di e in amily and non- amily i ms (e.g. De Massis e al., 2015; Du an e al., 2016; Röd, 2016). Family i ms a e o en desc ibed as esis an o change, conse a i e (Mo ck e al., 2000), a e se o isk (Naldi e al., 2007) and adi ional (Ch isman & Pa el, 2012) a he han inno a i e and c ea i e. These s udies sugges ha amily i ms appea o ha e a hesi an a i ude owa d opening hei bounda ies, e.g., owa d ex e nal sou ces o collabo a ions (Classen e al., 2012), o unwillingness o accep ou side pa ne s, di ec o s, o senio manage s (Alayo e al., 2021). In con as , some s udies, such as Be g eld and Webe (2011), s ess he g ea impo ance ha amily i ms a ach o inno a ion in o de o ensu e long- e m su i al. I should come as no su p ise, hen, ha o he s udies a gue ha amily owne ship and in ol emen a e ela ed o inno a ion (Zah a 2005). Recen findings sugges he amily adi ion can be a sou ce o inno a ion (De Massis e al., 2016). Family i ms in oduce mo e inc emen al inno a ions a he han adical inno a ions (e.g., De Massis e al., 2015; Nie o e al., 2015). The e is some deba e as o whe he amily i ms a e pa icula ly good a inno a ing based on hei unique his o ies and esou ces (e.g., De Massis e al., 2016) and whe he hei long- e m ou look s imula es hem o engage in mo e adical inno a ions ha ensu e hei long- e m sus ainabili y (e.g., Be g eld & Webe , 2011). The he e ogenei y o amily o ms may be one o he easons why s udies p esen con adic o y o inconclusi e esul s conce ning he in luence o he amily on inno a ion (e.g., Calab o e al., 2019; Ch isman e al., 2015). Thus, he ques ion becomes no simply whe he amily i ms inno a e mo e o less han do non amily i ms, bu how hey app oach he inno a ion p ocess (Nie o e al., 2015). Cu en ly, we ha e only a limi ed unde s anding o how he p ocess o inno a ion wo ks in amily i ms, and how amily go e nance a ibu es in luence his p ocess. Few s udies ake a longi udinal pe spec i e and unco e he inno a ion ajec o y in amily i ms (e.g., Fle che e al., 2016). Abili y and Willingness Pa adox A highly discussed opic in amily i m esea ch is he ‘abili y and willingness pa adox,’ which s a es ha amily fi ms end o ha e a highe abili y, ye lowe willingness, o engage in inno a ion compa ed o non- amily fi ms (Ch isman e al., 2015; De Massis e al., 2014). Abili y 109 Zizla sky, O., & Janicko a, N. (2021). The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew. A chi es o Business Resea ch, 9(5). 102-120. URL: h p://dx.doi.o g/10.14738/ab .95.10221 is defined as “ he disc e ion o he amily o di ec , alloca e, add o o dispose o a fi m’s esou ces” (De Massis e al., 2014). Willingness is he “ a ou able disposi ion o he in ol ed amily o engage in dis inc i e beha iou ” (De Massis e al., 2014), and d i es he owne o lead he fi m in a dis inc i e di ec ion ha eflec s he amily’s goals (Rondi e al., 2019). Family i m’s highe abili y o inno a e is shaped by he combina ion o hei long- e m o ien a ion, long- e m leade enu es, aci knowledge, s ong amily bonds, and social ne wo ks buil up o e gene a ions (e.g., De Massis e al., 2016). Bennedsen and Foss (2015) e e o hese amily-based ad an ages as amily asse s ha can be ans o med in o liabili ies, o example, when he amily’s close ne wo ks hinde fi ms om being explo a i e. On he o he hand, he amily fi m’s willingness o inno a e is de e mined by he amily owne s’ goals, in en ions, and mo i a ions, such as isk-a e sion o a eluc ance o sha e con ol wi h non- amily membe s and is hea ily influenced by socioemo ional ac o s (Ch isman e al., 2015). The easons o hei lowe willingness o inno a e include isk-a e sion, eluc ance o sha e con ol wi h non- amily membe s, lack o equisi e skills (Ch isman e al., 2015), and socio- emo ional conce ns (Röd, 2016). Consequen ly, esol ing his pa adox is c i ical o unlock hei inno a ion po en ial (Rondi e al., 2019). Socioemo ional Weal h Ano he main cha ac e is ic o amily i m is socioemo ional weal h (SEW). The co e o socioemo ional weal h is ha decision-making in amily i ms is no only d i en by economic aspec s bu also in pa icula by non-economic aspec s ha mee he amily’s a ec i e needs, such as he e en ion o a s ong amily epu a ion de i ed by he i m o he amily membe s’ ela ionship o he i m (Ch isman e al., 2015). The SEW is he mos commonly used amewo k o analyse he goals o amily fi ms (Vasquez & Rocha, 2019). The gene al SEW model, c ea ed as a gene al ex ension o he beha iou al agency heo y is based on he no ion ha fi ms make choices depending on he e e ence poin o he fi m’s dominan p incipals, whose usual emphasis is o p ese e hei affec i e endowmen (Vasquez & Rocha, 2019). In ac , he socioemo ional weal h pe spec i e defies wha p e iously was unde s ood o be economically logical decisions, as choices will also be d i en by he desi e o p ese e and inc ease affec i e endowmen s and no only financial weal h. Decisions inc easing o ganisa ional efficiency ha we in e p e as a ional beha iou may no necessa ily ansla e in o highe financial pe o mance since he meaning o efficiency is de e mined by he goals pu sued (Lee, 2006). Thus, SEW becomes a e e ence poin ha does no ocus on financial logic (Zellwege e al., 2012) bu unc ions wi h an economical logic o choice o he g ea benefi o sa is ac ion, gi en expec ed ou comes and isk scena ios. I is impo an o unde line he concep o SEW has bo h posi i e and nega i e impac . While some s udies p esen aspec s o SEW ha a e posi i e o he amily and p o-social inclina ion (e.g., Cennamo e al., 2012), o he s show ha SEW can also ha e a nega i e alence, hus esul ing in undesi able and e en ha m ul consequences o some amily and non amily membe s (e.g., Kelle manns, e al., 2012a). Familiness Viewing amily i ms as social sys ems ha combine wo coupled sys ems ( he amily and he business) c ea es a unique bundle o esou ces, known as ‘ amiliness’. Since i s in oduc ion by 110 Vol. 9, Issue 5, May-2021 A chi es o Business Resea ch (ABR) Se ices o Science and Educa ion – Uni ed Kingdom Habbe shon and Williams (1999), he cha ac e is ics o amiliness ha e been examined om a numbe o heo e ical pe spec i es (e.g., F ank e al., 2010; Pea son e al., 2008), which ha e, along he way, p o ided aluable insigh s in o he componen s o amiliness ha influence compe i i e ad an age. The esou ce-based pe spec i e, o example, is he o iginal heo e ical ounda ion used o highligh he bundle o esou ces p esen when amily is in ol ed in he business. This poin o iew, howe e , is limi ed when analysing specific social and beha iou al elemen s (Hoopes e al., 2003). Focusing on he impo ance o hese specific aspec s, Pea son e al. (2008) ake a social capi al pe spec i e o amiliness ha mo e clea ly a icula es he idiosync a ic socio-beha iou al esou ces o he amily fi m. By no ing he s uc u al, ela ional, and cogni i e dimensions o amiliness and i s effec s on amily exchange and associabili y, hei app oach offe s an unde s anding o he specific ac o s ha cons i u e amiliness. The p esence o social capi al in he amily fi m has he po en ial o offe a unique compe i i e ad an age o e non amily fi ms due o he ich, embedded amilial ela ionships absen in non amily fi ms. While o he concep s like he cons uc o SEW and amiliness om a esou ce-based iew a e impo an in enhancing ou unde s anding o amily fi ms’ inno a ion, hey each concen a e on pa ial aspec s o he amily sys em’s influence on he business: he amily’s goals o he amily’s esou ces, espec i ely. The p esen concep ualiza ion o amiliness o e s a holis ic iew by cap u ing he di e en a eas o he amily’s influence, aking he amily sys em as a whole in o accoun (Daspi e al., 2019). CONCLUSION This e iew a icle has p o ided a comp ehensi e o e iew o amily i ms and hei idiosync asies linked o inno a ion. Fo his pu pose, we e iewed 69 a icles published in pee - e iewed jou nals om 2003 o 2021 combining a sys ema ic app oach o he selec ion o a icles and a na a i e e iew o analyse he li e a u e. To answe he esea ch ques ion, he e iew p ocess was conduc ed in wo s ages. Fi s , an in-dep h analysis o empi ical findings o he a ious s ages o he inno a ion p ocess was conduc ed. Second, he a icles we e sea ched sys ema ically o con en ha can enhance ou unde s anding o how he amily influences hese s ages. Ou p emise is ha combina ion o mul iple indi idual ac o s d i es amily i m inno a ion. As a esul , he findings a e econciled in a concep ual amewo k ha p o ides a holis ic iew o he inno a ion p ocess by inco po a ing he amily sys em as an influencing con ex a iable. Building on he concep o amiliness, he amewo k demons a es how amily ac o s a ec he a ious s ages o he amily fi m’s inno a ion p ocess. Whe he he amily se es as an ad an age o disad an age o a business’s inno a ion beha iou depends on con ex ual ac o s. Focusing on he Czech Republic we can s a e ha amily i ms a e a e y popula phenomenon ha o ms he subs an ial pa o he Czech economy. Un o una ely, hey a e no gi en enough a en ion by bo h esea che s and go e nmen au ho i ies. Fo example, he de ini ion o amily business has been included in he law jus ecen ly. Mo eo e , only e y small numbe o publica ions om he Czech schola s ha e been ound in selec ed scien i ic da abases dealing wi h opics o amily i ms. He e he esea ch gab has been iden i ied. Ou analysis con ibu es o he li e a u e on amily i ms and o gene al inno a ion managemen s udies in se e al ways. I p o ides a comp ehensi e and opical o e iew o he 117 Zizla sky, O., & Janicko a, N. (2021). The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew. A chi es o Business Resea ch, 9(5). 102-120. URL: h p://dx.doi.o g/10.14738/ab .95.10221 successo s a e signi ican adop e s o lean inno a ion pa en ing s a egies. Clea y, P., Quinn, M. & Mo eno, A. Socioemo ional weal h in amily i ms: A longi udinal con en analysis o co po a e disclosu es 2019 Jou nal o Family Business S a egy 2, UK Family business li e a u e has no ed he na u e and p esence o socioemo ional weal h (SEW) in amily i ms. Au ho s obse e SEW by a i e-dimension app oach, collec i ely e med FIBER. They unde ake a con en analysis o co po a e disclosu es h ough he Chai man’s S a emen o wo I ish amily b ewe ies o e a pe iod o abou wo decades. The indings e eal ha he Chai man’s S a emen does include FIBER dimensions in bo h b ewe ies and hey do change o e ime. Daspi , J.J., Long, R.G. & Pea son, A.W. How amiliness a ec s inno a ion ou comes ia abso p i e capaci y: A dynamic capabili y pe spec i e o he amily i m 2019 Jou nal o Family Business S a egy In . e iew Au ho s use a dynamic capabili y pe spec i e o p opose ha amiliness a ec s abso p i e capaci y, a knowledge-speci ic dynamic capabili y, h ough which he i m’s inno a ion ou comes a e in luenced. The concep ual model o e ed highligh s he ole o abso p i e capaci y in unde s anding how amiliness a ec s inno a ion ou comes and elucida es he he e ogenei y ac oss amily i ms ha esul s om non amily membe in ol emen . De Massis, A., Di Minin, A., & F a ini, F. Family-d i en inno a ion: Resol ing he pa adox in amily i ms 2015 Cali o nia Manageme n Re iew In . e iew This a icle p esen s an in eg a ed, con ingency pe spec i e on amily i m inno a ion called Family- D i en Inno a ion (FDI). The amewo k highligh s he need o consis ency be ween a amily i m's s a egic inno a ion decisions and i s idiosync asies o achie e and sus ain compe i i e ad an age h ough inno a ion. This a icle also o e s some di ec ions o u u e esea ch on FDI and se es as an in oduc ion o his special sec ion on amily i ms. De Massis, A., F a ini, F., Ko la , J., Messeni Pe uzzelli, A., & W igh , M. Inno a ion h ough adi ion: Lessons om inno a i e amily businesses and di ec ions o u u e esea ch 2016 Academy o Manageme n Pe spec i e s 6, I aly Au ho s concep ualize a new p oduc inno a ion s a egy called inno a ion h ough adi ion and iden i y i s unde lying capabili ies o in e io izing and ein e p e ing pas knowledge. Au ho s analyse and discuss he illus a i e cases o six long-las ing amily businesses (Aboca, Ap eama e, Be e a, La azza, Sangalli, and Vib am), exempli ying how i ms ha build long-las ing and in ima e links wi h hei adi ions can be ex emely inno a i e while emaining i mly ancho ed o he pas . De Massis, A., F a ini, F., Pizzu no, E., & Cassia, L. P oduc inno a ion in amily s. non- amily i ms: An explo a o y analysis 2015 Jou nal o Small Business Manageme n 10, I aly By d awing upon he esou ce‐based iew o he i m as well as agency, s ewa dship, and beha iou al heo ies and using empi ical e idence ga he ed h ough a mul iple case s udy, he pape s udies how and why he ana omy o he p oduc inno a ion p ocess di e s be ween amily and non amily i ms. Dieleman, M. Reaping wha you sow: The amily i m inno a ion ajec o y 2019 Jou nal o Family Business S a egy Malays ia Using a longi udinal case s udy, au ho in es iga es he in luence o amily go e nance a ibu es du ing di e en s ages o inno a ion and sugges ha amily en ep eneu ship acili a es he con e sion o inno a ion inpu s o ou pu s. Family go e nance a ibu es (con ol, moni o ing and ne wo king) suppo inno a ion ac i i y du ing some phases, bu impede i du ing o he s. Du an, P., Kamme lande , N., an Essen, M., & Zellwege , T. Doing mo e wi h less: Inno a ion inpu and ou pu in amily i ms 2016 Academy o Manageme n Jou nal In . Au ho s a gue ha amily i ms – owing o he amily’s high le el o con ol o e he i m, weal h concen a ion, and impo ance o non inancial goals—in es less in inno a ion bu ha e an inc eased con e sion a e o inno a ion inpu in o ou pu and, ul ima ely, a highe inno a ion ou pu han non amily i ms. Empi ical e idence om a 118 Vol. 9, Issue 5, May-2021 A chi es o Business Resea ch (ABR) Se ices o Science and Educa ion – Uni ed Kingdom me a-analysis based on 108 p ima y s udies om 42 coun ies suppo s esea ch hypo heses. Fe ani a, F., Ko la ., J. & De Massis A. Collabo a i e inno a ion in amily fi ms: Pas esea ch, cu en deba es and agenda o u u e esea ch 2017 Jou nal o Family Business S a egy In . e iew Au ho s sys ema ically e iew and o ganize agmen ed indings and a gumen s om p io esea ch along h ee pe spec i es: s a egic, ansac ional, and ela ional. In doing so, hey p o ide a summa y o he cu en s a e-o - he-a in his li e a u e, poin o he impo ance o collabo a i e inno a ion o esol e he inno a ion dilemma in amily i ms. Filse , M., B em, A., Gas , J., K aus, S., & Calab ò, A. Inno a ion in amily i ms: Examining he in en o y and mapping he pa h 2016 In e na ion al Jou nal o Inno a ion Manageme n In . e iew By conduc ing a bibliome ic analysis wi h a ocus on inno a ion in amily i ms, au ho s iden i y i e opical clus e s ha help o unde s and he ounda ions o ecen indings (owne ship and go e nance, s uc u al se ings, o ganiza ional cul u e and beha iou , esou ces, and inno a ion and s a egy). Fle che , D., De Massis, A., & No dq is , M. Quali a i e esea ch p ac ices and amily business schola ship: A e iew and u u e esea ch agenda 2016 Jou nal o Family Business S a egy In . e iew Au ho s unde ook an analysis o he mos -ci ed a icles using quali a i e me hods om an anno a ed bibliog aphy o amily business s udies. They iden i ied he s eng hs and weaknesses o ex an quali a i e s udies in amily business esea ch and a gue o he need o e-o ien a e calls in amily business esea ch owa ds he ounda ional ques ions ( a he han me hods) ha unde line quali a i e inqui y. Hauck, J., & P ügl, R. Inno a ion ac i i ies du ing in a- amily leade ship succession in amily i ms: An empi ical s udy om a socioemo ional weal h pe spec i e 2015 Jou nal o Family Business S a egy Aus ia ( ou is m indus y) Au ho s eason ha he in a- amily leade ship succession phase has dis inc cha ac e is ics ha ende i a peculia ime ame o inno a ion. They use quan i a i e da a om a unique esea ch se ing in which amily in luence in e ms o owne ship and managemen , and hus he abili y o inno a e, as well as majo con ex ual a iables we e held cons an . The esul s show ha SEW ac o s ha e bo h da k and b igh sides in he con ex o inno a ion. Hiebl, M. R. W. Family in ol emen and o ganiza ional ambidex e i y in la e - gene a ion amily businesses: A amewo k o u he in es iga ion 2015 Manageme n Decision In . The pape aims o discuss he issue ha amily i ms esea ch has no ye aken su icien ad an age o he po en ial o o ganiza ional ambidex e i y o con ibu e o explaining he abili y o la e - gene a ion amily i ms o su i e. Se en p oposi ions a e de eloped which sugges ha he le el o amily in ol emen in owne ship and managemen a ec he abili y o la e -gene a ion amily i ms o each high le els o o ganiza ional ambidex e i y. Hol , D. T., & Daspi , J. J. Diagnosing inno a ion eadiness in amily fi ms 2015 Cali o nia Manageme n Re iew In . This a icle in oduces he Readiness o Inno a ion in Family Fi ms (RIFF) amewo k, which p o ides a diagnos ic assessmen and iden i ies mul iple ac o s associa ed wi h inno a ion eadiness. By applying he RIFF amewo k, manage s o amily i ms can ocus on speci ic ac o s ha p epa e he i m o engage in he inno a ion adop ion p ocess, inc easing success. Ch isman, J. J., Chua, J. H., De Massis, A., F a ini, F., & W igh , M. The abili y and willingness pa adox in amily fi m inno a ion. 2015 Jou nal o P oduc Inno a ion Manageme n In . e iew Au ho s p esen a amewo k o how amily in ol emen in luences inno a ion managemen based on abili y (disc e ion o ac ) and willingness (disposi ion o ac ), wo d i e s ha dis inguish amily i ms om non amily i ms and lead o he e ogenei y among amily i ms. Kallmuenze , A. & Pe e s, M. 2018 In e na ion al Jou nal o 180, Aus ia ( ou is This s udy compa es he inno a i eness o ou ism/hospi ali y amily i ms (THFF) and i s e ec on inancial pe o mance o ha in non- 119 Zizla sky, O., & Janicko a, N. (2021). The Role o Inno a ion in Small and Medium-Sized Family Fi ms: A Li e a u e Re iew. A chi es o Business Resea ch, 9(5). 102-120. URL: h p://dx.doi.o g/10.14738/ab .95.10221 Inno a i eness and con ol mechanisms in ou ism and hospi ali y amily i ms: A compa a i e s udy Hospi ali y Manageme n m indus y) ou ism/-hospi ali y indus ies (non-THFF). D awing on amily business li e a u e, au ho s also analyse he applicabili y o con ol mechanisms o manage he e ec i eness o inno a i eness. Findings om a sample o 180 i ms (82 THFF and 98 non- THFF) show ha inno a i eness in THFF is as ele an o pe o mance as in non-THFF. Kamme lande , N., & Gan e , M. A en ion-based iew o amily i m adap a ion o discon inui ies: The ole o non- inancial goals 2015 Jou nal o P oduc Inno a ion Manageme n 7, Ge ma ny (consu me goods) Based on se en longi udinal case s udies in he Ge man consume goods indus y au ho s e eal how a iance in he amily CEOs’ non- inancial goals causes subs an ial he e ogenei y in he amily i ms’ adap a ion beha iou ega ding he ype, speed, in ensi y, lexibili y, and pe sis ence o hei adap a ion. Miglio i, S. De Massis, A., Ma u o, F. & Paolone F. How does amily managemen a ec inno a ion in es men p opensi y? The key ole o inno a ion impulses 2020 Jou nal o Business Resea ch 1093, I aly Au ho s in es iga e he ela ionship be ween amily managemen and inno a ion in es men p opensi y in amily i ms h ough analysing he e ec o wo inno a ion impulses: demand-pull and echnology- push. The esul s show ha bo h he demand-pull and echnology-push inno a ion impulses mode a e he ela ionship be ween amily managemen and he i ms’ p opensi y o in es in inno a ion, educing he nega i e e ec exe ed by amily managemen on amily i ms’ inno a ion in es men p opensi y. Nie o, M.J., San ama ia, L. & Fe nandez, Z. Unde s anding he Inno a ion Beha io o Family Fi ms 2015 Jou nal o Small Business Manageme n Spain This pape examines inno a ion beha iou in amily i ms, analysing hei inno a ion e o s, sou ces, and esul s. Using a la ge sample o Spanish i ms, he indings show ha amily i ms pe o m ewe inno a ion e o s and a e less inclined o u n o ex e nal sou ces o inno a ion, such as echnological collabo a ion, han non amily i ms. Rau, S.B., We ne , A. & Schell, S. Psychological owne ship as a d i ing ac o o inno a ion in olde amily i ms 2019 Jou nal o Family Business S a egy 942, Ge ma ny While some amily i ms inno a e less when g owing olde , o he s a e e y success ul and inno a i e o e mul iple gene a ions. Au ho s p o ide a new explana ion o his phenomenon by showing ha psychological owne ship can in luence he ela ionship be ween gene a ion in owne ship and inno a ion ou pu . In line wi h he li e a u e, we ind ha o e he gene a ions, inno a ion ou pu dec eases, being signi ican ly lowe in he hi d and la e gene a ion han in he ounde gene a ion. Röd, I. Disen angling he amily i m’s inno a ion p ocess: A sys ema ic e iew 2016 Jou nal o Family Business S a egy In . e iew Au ho s p esen sys ema ic e iew a icle analyzed 78 pee - e iewed jou nal a icles on inno a ion in amily businesses. Subsequen ly, a concep ual amewo k is de eloped ha p o ides a holis ic iew o he mul i-s aged inno a ion p ocess by inco po a ing he amily sys em as an in luencing con ex a iable. Building on he concep o amiliness, he amewo k demons a es how amily ac o s, based in he amily sys em, a ec he a ious s ages o he amily i m’s inno a ion p ocess. Whe he he amily leads o an ad an age o disad an age o he inno a ion beha io o he business depends on con ex ual ac o s (e.g., pe o mance haza ds, kind o amily in ol emen , and gene a ional e ec s) and i s and o emos on he amiliness o he i m. Rondi, E., De Massis, A. & Ko la , J. Unlocking inno a ion po en ial: A ypology o 2019 Jou nal o Family Business S a egy I aly Au ho s de elop he cons uc o amily business inno a ion pos u e, and iden i y a ypology o ou ideal ypes: Seasone , Re-enac o , Digge , and Ad en u e . The a icle examines he implica ions o 120 Vol. 9, Issue 5, May-2021 A chi es o Business Resea ch (ABR) Se ices o Science and Educa ion – Uni ed Kingdom amily business inno a ion pos u es and he c i ical ole o he amily sys em his ypology o amily business inno a ion esea ch by explo ing he e ec s o in a- amily succession, ou lining impo an di ec ions o u u e esea ch aimed a ad ancing cu en unde s anding o he ole o he amily in amily business inno a ion, and p o iding p ac ical insigh s o amily business owne s, manage s, and consul an s. Sau abh, A., Mah o, R.V., & Walsh, S.T. Inno a ion in small i ms: Does amily s. non- amily ma e ? 2017 Jou nal o Small Business S a egy USA In his s udy, au ho s explo e an eceden s o inno a ion in small i ms. They build and es a heo e ical model ha links employee aining, employee commi men , amily employees, and emphasis on lea ning o inno a ion in small i ms. Au ho s also a gue ha a small- i m owne ’s pe cep ion abou his i m being a amily i m o a non- amily i m will in luence he ela ionship be ween p edic o s and i m inno a ion. Vasquez, P. & Rocha, H. On he goals o amily i ms: A e iew and in eg a ion 2019 Jou nal o Family Business S a egy In . e iew In his a icle, au ho s p esen a e iew and in eg a ion o 76 a icles published in pee - e iewed jou nals om 1992 o 2016 in o de o answe wo esea ch ques ions: wha a e he goals o amily i ms and how a e hey in eg a ed acco ding o ex an esea ch? The indings a e wo old: i s , he goals o amily i ms a e di e se and classi ied in dicho omous ca ego ies; second, he majo i y o s udies in eg a e hese goals based on a ade-o logic. Veide , V., & Ma zle , K. The abili y and willingness o amily- con olled i ms o a i e a o ganiza ional ambidex e i y 2016 Jou nal o Family Business S a egy Building on a combina o y conside a ion o he abili y and willingness amewo k in he con ex o o ganiza ional ambidex e i y, au ho s a gue ha he abili y o amily-con olled i ms o a i e a o ganiza ional ambidex e i y is con ingen on hei willingness o ace amily- ela ed disad an ages ia ac i i ies ha allow o he educ ion o laws a ising ou o amily- ela ed pa icula is ic cons i uencies.