The paradoxical relationship between familiness and business innovation

Purpose Innovation in family firms has become a central topic in business strategy, with a large and growing body of research. Given the dynamic and highly competitive environment, both family and non-family firms are compelled to innovate to adapt and maintain a sustainable competitive advantage. This study analyses the paradoxical relationship between familiness and business innovation using a sample of family- and non-family-owned companies. Design/methodology/approach The empirical analysis draws on a sample of 106 Spanish hotel chains, encompassing both family-owned and non-family-owned firms. Following recent research that has refined techniques based on structural equation modelling, the method of analysis used was PLS-SEM. Non-linear relationships and moderating effects were examined. Findings This research finds empirical evidence of a non-linear relationship between family ownership and innovation. Furthermore, our findings indicate that the presence of a family chief executive officer (CEO) negatively moderates the relationship between ownership and innovation, suggesting that a family CEO may hinder innovation within family firms. Originality/value The innovation paradox in family firms has been the subject of considerable scholarly attention in recent years. Nevertheless, it is interesting to analyse these issues by considering a sample of family and non-family companies to improve business management literature. Furthermore, advanced analytical techniques are needed to uncover relationships beyond linear relationships.