An explorative study on family firms and open innovation breadth: Do non-family managers make the difference?

The degree of openness in innovation is a key strategic decision of family firms (FFs). Although there is an increased interest in studies on FFs and open innovation (OI), the existing knowledge is rather limited. This study explores the determinants of OI in FFs. We focus on two distinctive types of FFs: those held and managed by family members and FFs where ownership and management are disjointed, leading to non-family managers being involved in strategic decision-making. Our study shows that FFs managed by non-family managers are motivated by an innovation strategy that is more aggressive, more oriented towards technological excellence and radical innovation as compared to FFs managed by family managers. And they are more likely to search for a broader set of external sources in embracing OI. We argue that the presence of non-family managers is what makes the difference in shaping firm behaviour in terms of OI breadth.