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The influence of family involvement and generational stage on learning-by-exporting among family firms

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Abstract

This paper explores the link between export activity and product innovation in family firms. Following the learning-by-exporting (LBE) hypothesis and considering that family firms are not homogeneous entities, we examine differences among family firms with regard to the influence of export activity on product innovation, based on the degree of family involvement in management and on the generational stage. Based on a sample of 7742 observations corresponding to over 770 family firms operating in 20 different manufacturing industries in the period 2007–2016, empirical findings point to significant differences between family firms in terms of converting the benefits of exporting into product innovation. A greater level of family involvement in management fosters the LBE effect on product innovation through an inverted U-shaped pattern, which reaches a peak when there are 2.45 family members involved in managing the company. Contrary to expectations, results also show a positive influence of first-generation family firms on the LBE effect on product innovation.

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Notes

  1. For interactions including LBE and family involvement in management, a dichotomous variable in accordance with the EI value of the firm is created (LBE = 1 if the EI value is greater than its mean value, and is 0 otherwise).

  2. Dichotomized as explained in the variables description.

  3. All the correlation tests, as well as full and detailed results of the Durbin–Wu–Hausman test, are available upon request from the authors.

  4. VIFs for each variable are: firm age = 2.15; firm size = 1.11; LBE (export intensity) = 1.03; the level of family involvement in management = 1.07; generational stage = 2.19; gross operating margin = 1.01.

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Acknowledgements

Financial support from the Ministry of Science, Innovation and Universities (Project ECO2017-84209-P) and Fundación Cajamurcia (Spain) is acknowledged.

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  1. Management and Finance Department, University of Murcia, Campus de Espinardo, 30100, Murcia, Spain

    Gregorio Sánchez-Marín, María Pemartín & Joaquín Monreal-Pérez

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  1. Gregorio Sánchez-Marín
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  2. María Pemartín
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  3. Joaquín Monreal-Pérez
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Sánchez-Marín, G., Pemartín, M. & Monreal-Pérez, J. The influence of family involvement and generational stage on learning-by-exporting among family firms. Rev Manag Sci 14, 311–334 (2020). https://doi.org/10.1007/s11846-019-00350-7

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