Title: Is innovativeness always beneficial in family SMEs? The moderating role of generational stage

Authors: Jonathan Bauweraerts; Olivier Colot

Addresses: Warocqué School of Business and Economics, University of Mons, 17 Place Warocqué, 7000 Mons, Belgium ' Warocqué School of Business and Economics, University of Mons, 17 Place Warocqué, 7000 Mons, Belgium

Abstract: Many studies suggest that innovativeness is positively related to performance in small- and medium-sized family enterprises (family SMEs); however, empirical and theoretical controversies surround this problematic. This study proposes and tests an integrative framework connecting two explanations for these inconsistencies: the innovativeness-performance relationship is curvilinear, and the performance implications of innovativeness are contingent upon the firm's generational stage. Drawing on the socio-emotional wealth theory, the results from a dataset of 204 Belgian family SMEs show an inverted U-shaped relationship between innovativeness and performance. Furthermore, the generational stage of the firm negatively moderates this curvilinear relationship.

Keywords: SMEs; innovativeness; performance; generational stage; family firms.

DOI: 10.1504/IJESB.2023.128341

International Journal of Entrepreneurship and Small Business, 2023 Vol.48 No.2, pp.101 - 127

Received: 22 Jun 2020
Accepted: 15 Jun 2021
Published online: 18 Jan 2023 *

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