The role of SEW and TMT behaviours in family business innovation: Evidence from China

Innovation is the lifeblood of a family business and plays an important role in developing the firm's competitiveness and achieving sustainable growth. As the majority of Chinese private firms and the main foundation of China's private sector, Chinese family businesses are an emerging force for innovation. This thesis attempts to unravel the innovation “black box” of family firms by exploring the mechanisms of how and why family firms are more efficient during the innovation process. Drawing upon stewardship theory and upper echelon theory, this study investigates how socioemotional wealth (SEW) influences the innovation inputs, the relationship between innovation inputs and outputs, and the role of top management team (TMT) behaviours during the conversion from innovation inputs to outputs. Based on a mixed-method study, this thesis investigates the mechanism of the innovation process using quantitative survey data from 473 Chinese family-controlled small and medium-sized enterprises (SMEs) and qualitative interview data from 12 Chinese family-controlled SMEs. The key findings of this thesis revealed that different dimensions of SEW shape decision-making on innovation inputs for family firms in China. Specifically, the results indicate that family influence and control have negative implications for innovation inputs, while binding social ties, emotional attachment, and renew family bonds positively affect the innovation inputs. Moreover, this thesis finds that innovation inputs have indirect effects on innovation outputs through TMT behaviours. The use of knowledge and skills, trust, and cognitive conflicts by TMTs partially mediate the relationship between innovation inputs and outputs. This research extends the understanding of the innovation process in the family businesses by exploring SEW-related innovation decision-making processes and administrative behaviour at the TMT level, which tackles the conundrum of how family firms can win innovations with limited innovation inputs. Moreover, it also enriches the literature on Chinese family business innovation, which provides new insights about family business innovation in emerging economies, thus contributing towards a more holistic picture of family business innovation globally. Practically, this research provides a comprehensive understanding of the innovation process in Chinese family businesses. It juxtaposes the viewpoints of family owners, policymakers, and managers on how family businesses in China can innovate and thrive in an emerging market.

Citation

Pu, T. (2023) The role of SEW and TMT behaviours in family business innovation: Evidence from China. University of Wolverhampton. http://hdl.handle.net/2436/625244

Publisher

University of Wolverhampton

URI

http://hdl.handle.net/2436/625244

Type

Thesis or dissertation

Language

en

Description

A thesis submitted in partial fulfilment of the requirements of the University of Wolverhampton for the Degree of Doctor of Philosophy.

Rights

Attribution-NonCommercial-NoDerivatives 4.0 International

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Collections

Theses and Dissertations