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Abstract
This study investigates differences in the diversity of cooperation partners used for innovation‐related activities (i.e., search breadth) between family and nonfamily small and medium‐sized enterprises (SMEs), as well as within the group of family SMEs. The results generally confirm our hypotheses derived from the behavioral theory of the firm. Specifically, we show that family SMEs have a lower search breadth than their nonfamily counterparts. Our findings further illustrate how attributes of the CEO (level of education) and the top management team (nonfamily management involvement and educational background diversity) relate to the search breadth of family SMEs.
Notes
1 The objective to innovate was measured on a five‐point Likert scale asking how important the objective to innovate was for a firm. Firms were categorized as having the objective to innovate if they indicated a 4 or a 5 for this item.
2 Based on the official Eurostat (Citation2010) classification, firms were categorized as low‐, medium‐, or high‐technology firms according to their NACE (European industrial activity classification) codes.
3 We also ran additional tests controlling for potential generational differences among family SMEs. We did not find a significant direct relationship between the generational stage and search breadth, nor did the inclusion affect any of our remaining relationships of interest.
4 Product/process innovation was measured by means of five/three Likert‐scale items adapted from Zahra et al. (Citation2000); Cronbach's alpha was 0.80/0.87.
5 The educational attainment of the CEO may also be relevant for the search breadth of nonfamily firms. Testing the same relationship in the subsample of nonfamily SMEs (n = 85), however, did not reveal a significant effect.
6 As the degree of educational background diversity within the TMT could also be relevant for the search breadth of nonfamily SMEs, we tested this relationship among the group of nonfamily SMEs (n = 85). Here we do observe a positive and significant effect (b = 0.35; p < .05).
Additional information
Notes on contributors
Nicolas Classen
Nicolas Classen is a PhD candidate in the School of Business and Economics, Department of Organization & Strategy at Maastricht University.
Anita Van gils
Anita Van Gils is associate professor in the School of Business and Economics, Department of Organization & Strategy at Maastricht University.
Yannick Bammens
Yannick Bammens is assistant professor in the School of Business and Economics, Department of Organization & Strategy at Maastricht University.
Martin Carree
Martin Carree is full professor in the School of Business and Economics, Department of Organization & Strategy at Maastricht University.