The effect of innovation and perceived opportunity on the business growth: a comparison of Turkey and Indonesia family business
by Gandhi Pawitan; Catharina Badra Nawangpalupi; Gökçen Arkalı Olcay; Özlem Kunday
European J. of International Management (EJIM), Vol. 16, No. 2, 2021

Abstract: This paper intends to fill a lack of research in comparing family businesses in different cultures or countries. In this paper, we explore whether family businesses differ in benefitting from innovation on growth, based on a comparative study of Turkish and Indonesian small family entrepreneurs. The main interest lies in testing the moderating effects of being family entrepreneurs on exposing the effects of innovativeness on growth, and some other entrepreneur and country-specific factors and firm age are also measured. The empirical analyses are conducted on a pooled dataset of Turkish and Indonesian family entrepreneurs, including non-family entrepreneurs collected in 2018 by Global Entrepreneurship Monitor (GEM). The findings suggest that Turkish and Indonesian entrepreneurial family businesses do not yet obtain the benefit of innovativeness, at least not in growth expectations. National-level initiatives might drive the innovativeness potential of family businesses towards getting more value out of their entrepreneurial activities.

Online publication date: Wed, 18-Aug-2021

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