Analysis of the differences between family and non-family firms in matters of cooperation and innovation

Abstract

Given the fact that family firms are the backbone of many economies around the world, it is of interest to analyze their cooperation behavior concerning innovation. For this reason, the aim of this paper is to study whether differences exist between these types of businesses and their non-family counterparts when making decisions about developing technological alliances with different external partners. Particularly, three main research objectives are suggested: Firstly, to identify if there are significant differences between family and non-family firms when developing technological innovation, distinguishing between product and process innovation. Secondly, to identify if there are major differences between family and non-family firms when setting up technological alliances. Thirdly, to analyze if technological alliances in family firms depend on the chosen partner (suppliers, customers, competitors, and universities or research institutes). The empirical research has been conducted with a sample of 1,848 firms of the manufacturing sector in Spain, of which 828 are family firms. Results show important differences between family and non-family firms in relation to technological cooperation. Specifically, econometric analysis provides significant evidence linking technological cooperation and the family character, and more in particular in their relationships with suppliers and customers.