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Family-owned manufacturing SMEs and innovativeness: A comparison between within-family successions and external takeovers

Grundström, Christina; Öberg, Christina LU and Öhrwall-Rönnbäck, Anna (2012) In The Journal of Family Business Strategy 3(3). p.162-173
Abstract
The purpose of this article is to compare within-family successions and external-party takeovers in family-owned manufacturing SMEs to determine potential differences in how they are perceived and managed. This paper focuses on two long-term aspects of family businesses – their succession and their ability to innovate – defining innovativeness as an aspect of organisational culture. Based on ten case studies, the paper concludes that the values related to a firm's context, influenced by the divesting party as well as by the choice of successor, create inertia, to the extent that only minor changes in innovation orientation are possible. External owners may focus to a greater extent on growth and new ways of innovating, while... (More)
The purpose of this article is to compare within-family successions and external-party takeovers in family-owned manufacturing SMEs to determine potential differences in how they are perceived and managed. This paper focuses on two long-term aspects of family businesses – their succession and their ability to innovate – defining innovativeness as an aspect of organisational culture. Based on ten case studies, the paper concludes that the values related to a firm's context, influenced by the divesting party as well as by the choice of successor, create inertia, to the extent that only minor changes in innovation orientation are possible. External owners may focus to a greater extent on growth and new ways of innovating, while family-succeeded firms diversify so as not to abandon previous businesses. Intermediating factors, such as customer involvement, type of SME, and the acquirers’ motives, influence the innovative organisational culture and create explanatory links to innovation intensity and methodologies of innovation. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
The Journal of Family Business Strategy
volume
3
issue
3
pages
162 - 173
publisher
Elsevier
external identifiers
  • scopus:84866000639
ISSN
1877-8585
DOI
10.1016/j.jfbs.2012.07.001
language
English
LU publication?
yes
id
f5e179c6-2e75-49eb-883b-28be749dd852 (old id 4934934)
date added to LUP
2015-01-21 10:38:33
date last changed
2017-08-27 03:36:53
@article{f5e179c6-2e75-49eb-883b-28be749dd852,
  abstract     = {The purpose of this article is to compare within-family successions and external-party takeovers in family-owned manufacturing SMEs to determine potential differences in how they are perceived and managed. This paper focuses on two long-term aspects of family businesses – their succession and their ability to innovate – defining innovativeness as an aspect of organisational culture. Based on ten case studies, the paper concludes that the values related to a firm's context, influenced by the divesting party as well as by the choice of successor, create inertia, to the extent that only minor changes in innovation orientation are possible. External owners may focus to a greater extent on growth and new ways of innovating, while family-succeeded firms diversify so as not to abandon previous businesses. Intermediating factors, such as customer involvement, type of SME, and the acquirers’ motives, influence the innovative organisational culture and create explanatory links to innovation intensity and methodologies of innovation.},
  author       = {Grundström, Christina and Öberg, Christina and Öhrwall-Rönnbäck, Anna},
  issn         = {1877-8585},
  language     = {eng},
  number       = {3},
  pages        = {162--173},
  publisher    = {Elsevier},
  series       = {The Journal of Family Business Strategy},
  title        = {Family-owned manufacturing SMEs and innovativeness: A comparison between within-family successions and external takeovers},
  url          = {http://dx.doi.org/10.1016/j.jfbs.2012.07.001},
  volume       = {3},
  year         = {2012},
}