Mediating role of knowledge management for emotional ownership in technological innovations. An overview of Italian family SMEs

Purpose The purpose of study is to explore the linkage between emotional ownership and technological innovation in family firms. How emotional ownership is associated with technological innovation in FSMEs remains unaddressed. Scholars agree that emotional ownership plays a crucial role for family small to medium enterprises (FSMEs), leading to increased knowledge exchange and their ability to implement technological innovation. Yet, little is known about the effect of the emotional and cognitive side of ownership on FSME’s ability to manage knowledge and technologically innovate. Design/methodology/approach Applying attachment and social identity theory, this paper explores the gap by collecting data from 758 Italian FSMEs. It theorizes that family belongingness and family attachment ensure a valuable perspective of continuity and innovation. Findings The results reveal the effective leverage of emotional ownership in technological innovation. FSMEs are emotionally engaged and so develop a strong innovative technological orientation. Originality/value The findings reveal how to make an FSME’s organizational environment more innovative with implications of theory and practice. FSME’s ability to leverage internal emotions and collaborations is essential for technological innovation.