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

På svenska

Author

  • Christina Grundström
  • Christina Öberg
  • Anna Öhrwall-Rönnbäck

Summary, in English

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.

Publishing year

2012

Language

English

Pages

162-173

Publication/Series

The Journal of Family Business Strategy

Volume

3

Issue

3

Document type

Journal article

Publisher

Elsevier

Topic

  • Business Administration

Status

Published

ISBN/ISSN/Other

  • ISSN: 1877-8585