Social innovations in family businesses: founder-led vs. next-generation leadership

Purpose: Social innovations are important tools for alleviating social problems and fostering societal development. Their presence in the business sector is highly desirable, making it crucial to identify potential factors that support their creation. We find that family businesses can provide a favorable environment for social innovations. The purpose of this article is to present the importance and role of first-generation family business founders with management functions in the creation and implementation of social innovation. Design/methodology/approach: In order to determine who contributes more to social innovations in family businesses—founders or successors—we conducted a survey on a sample of 485 family businesses. We utilized the Mann-Whitney U test to identify any significant differences in the implementation of social innovations between firms managed solely by founders and those led by successors. We utilized a validated scale to assess engagement in social innovations. Findings: Our analysis demonstrates that the presence of the founder on the management board is a significant factor differentiating both the perceived importance and practical implementation of social innovations in family businesses. Research limitations/implications: It should be underscored that we did not examine the dynamics within the management board (such as potential conflicts, succession plans, gender structure, and so on). Taking into consideration these potential factors might shed additional light on the barriers to implementing social innovations in family businesses. Practical/social implications: In our research, we present various forms of social innovation implementation. Practitioners can find potential examples of simple solutions to make their businesses more socially oriented and enhance their reputation, which is particularly important for family businesses. Originality/value: This study contributes to the understanding of social innovation in family businesses by exploring the role of founders and successors in driving socially oriented initiatives. Its value lies in providing empirical evidence on the differences in social innovation engagement between generations, offering practical insights for family business practitioners and policymakers. Keywords: family businesses, social innovations, succession, founder-led businesses. Category of the paper: Research paper.