The Reciprocal Relationship of Innovation Capabilities and Socioemotional Wealth in a Family Firm

Abstract

This paper deals with entrepreneurship in family firms by researching how technology‐based innovation capabilities influence the socioemotional dimensions of the owning family and vice versa. In combination with dynamic capabilities, the socioemotional wealth (SEW) perspective offers a framework that enables an investigation of the nature of innovation capabilities in family firms. Studying a single firm, we identify a positive reciprocal relationship between innovation capabilities and SEW. We find that this reciprocal relationship within the family business presents itself in a synergistic fashion, yielding synergies between financial wealth and SEW. The findings contribute to the literature on entrepreneurship and innovation in family businesses.

Additional information

Funding

Carl‐Olof and Jenz Hamrins Foundation

Funding

Swedish Center for Agricultural Business Management

Notes on contributors

Sarah Fitz‐koch

Sarah Fitz‐Koch is PhD student in entrepreneurship at Swedish University of Agricultural Sciences Alnarp, Sweden.

Mattias Nordqvist

Mattias Nordqvist is professor in business administration at Jönköping International Business School, Jönköping University, and visiting professor at Swedish University of Agricultural Sciences Alnarp, Sweden.