Innovation in small firms: Does family vs. non-family matter?

Abstract

Small firms are the backbone of our economy. These firms need to innovate to thrive and compete. However, research on innovation in small firms, especially non-technology and less knowledge-intensive firms, is lacking. In this study, we explore antecedents of innovation in such firms. We build and test a theoretical model that links employee training, employee commitment, family employees, and emphasis on learning to innovation in small firms. We also argue that a small-firm owner’s perception about his firm being a family firm or a non-family firm will influence the relationship between predictors and firm innovation.