Family business and technological innovation : empirical insights from the Italian pharmaceutical industry

This book explores technological innovation in family firms, seeking to reconstruct the links between the heterogeneous dimensions of family businesses and their innovative behaviour. Building on and examining the traditional view of family firms as conservative, this book contributes to knowledge surrounding the puzzling role of family firms in technological innovation, with particular focus on the Italian pharmaceutical industry. The authors explore technological advances within the industry in connection with various features of family governance. This thought-provoking study is divided into two parts, the first part providing an overview of current literature on the topic, and the second part analysing the findings of empirical investigation in a specific industry setting. Practitioners and academics of business strategy will find this book extremely useful as it combines both solid theoretical reasoning and robust empirical analysis. Read more... Abstract: This book explores technological innovation in family firms, seeking to reconstruct the links between the heterogeneous dimensions of family businesses and their innovative behaviour. Building on and examining the traditional view of family firms as conservative, this book contributes to knowledge surrounding the puzzling role of family firms in technological innovation, with particular focus on the Italian pharmaceutical industry. The authors explore technological advances within the industry in connection with various features of family governance. This thought-provoking study is divided into two parts, the first part providing an overview of current literature on the topic, and the second part analysing the findings of empirical investigation in a specific industry setting. Practitioners and academics of business strategy will find this book extremely useful as it combines both solid theoretical reasoning and robust empirical analysis Acknowledgements 6 Contents 7 Abbreviations, Acronyms, or Chronology 8 List of Figures 9 List of Tables 10 1 Introduction 11 Abstract 11 1.1 Introduction to Family Business and Technological Innovation 12 References 15 2 Theoretical Perspectives on Family Firms 19 Abstract 19 2.1 Family Firms: Definitions 20 2.2 Family Firm Heterogeneity 23 2.3 Theoretical Approaches to Family Firms 25 2.3.1 Agency Theory 25 2.3.2 Resource-Based Theory 29 2.3.3 Stewardship Theory 31 2.3.4 Behavioral Agency Model 33 2.4 Family Firm Strategic Decisions 35 2.4.1 Diversification 36 2.4.2 Internationalization 38 2.4.3 Financing and Investment Strategies 39 References 40 3 Innovation in Family Firms: Critical Review of Theoretical and Empirical Literature 51 Abstract 51 3.1 Technological Innovation in Contemporary Organizations 52 3.2 Literature Review Methodology 53 3.3 Family Firms and Innovation Inputs 54 3.4 Family Firms and Innovation Outputs 59 3.5 Theories of Innovation in Family Firms 64 3.6 Other Areas of Investigation into Family Firms’ Innovative Activities 68 3.7 Concluding Remarks 70 References 71 4 Family Firm Innovation in the Global Pharmaceutical Industry 80 Abstract 80 4.1 The Global Pharmaceutical Industry: Structure, Competitive Dynamics, and Trends 81 4.2 Technological Innovation in the Global Pharmaceutical Industry 85 4.3 Business Actors in the Global Pharmaceutical Industry: The Role of Family Firms 88 4.4 An Overview of Italian Firms Operating in the Pharmaceutical Industry 91 References 99 5 Family Business and Technological Innovation: Evidence from the Italian Pharmaceutical Industry 104 Abstract 104 5.1 Family Firms and Innovation Performance: The Relevance of a Multidimensional Phenomenon 105 5.2 Scale and Quality of Innovation in Family Firms: A Tale of Two Relationships? 108 5.3 Data and Empirical Methodology 112 5.3.1 Variables 115 Dependent Variables 115 Independent Variables 117 Control Variables 118 5.3.2 Data Analysis 120 5.4 Analyses and Results 122 5.4.1 Descriptive Statistics 122 5.4.2 Univariate Analysis 126 5.5 Findings 130 5.6 Sensitivity Analysis and Robustness Checks 140 References 142 6 Concluding Remarks and Avenues for Future Research 148 Abstract 148 6.1 Concluding Remarks and Discussion 148 6.2 Contributions 153 6.2.1 Limitations and Future Research Agenda 156 6.2.2 Managerial Implications 160 References 161 Index 165 Front Matter ....Pages i-xv Introduction (Alessandra Perri, Enzo Peruffo)....Pages 1-8 Theoretical Perspectives on Family Firms (Enzo Peruffo)....Pages 9-40 Innovation in Family Firms: Critical Review of Theoretical and Empirical Literature (Alessandra Perri)....Pages 41-69 Family Firm Innovation in the Global Pharmaceutical Industry (Alessandra Perri, Enzo Peruffo)....Pages 71-94 Family Business and Technological Innovation: Evidence from the Italian Pharmaceutical Industry (Alessandra Perri, Enzo Peruffo)....Pages 95-138 Concluding Remarks and Avenues for Future Research (Alessandra Perri, Enzo Peruffo)....Pages 139-155 Back Matter ....Pages 157-159