Title: Innovation, dynamic capabilities and family firms operating in an emerging economy

Authors: Abel Duarte Alonso; Seamus O'Brien; Seng Kok

Addresses: Liverpool Business School, Liverpool John Moores University, Redmonds Building Brownlow Hill, L3 5UG, Liverpool, UK; School of Business and Law, Edith Cowan University, 270 Joondalup Dr., Joondalup, 6027 WA, Australia ' Liverpool Business School, Liverpool John Moores University, Redmonds Building Brownlow Hill, L3 5UG, Liverpool, UK ' Liverpool Business School, Liverpool John Moores University, Redmonds Building Brownlow Hill, L3 5UG, Liverpool, UK

Abstract: Drawing on the dynamic capabilities framework (DCF), this exploratory study examines family firms' involvement in innovation practices, including reasons and ways to innovate. The cases of four family firms operating in an emerging economy (Uruguay) are investigated. Semi-structured, face-to-face and telephone interviews were conducted with owners and managers, and complemented with e-mail correspondence. Based on the imperative need to solve problems in their industry, firms' managements were intensively involved in various innovative processes. These processes included quality improvements, responding to a dynamic and competitive business and consumer environment, and extending the life and survival of the family enterprise for future generations. Notably, the importance of sensing and learning in the form of identifying and assimilating key information, and seizing and applying such information to develop or adopt innovation, including new technologies, emerged strongly. The findings also highlight the usefulness of the DCF to understand firms' integration, and transformation of learning.

Keywords: innovation; innovative practices; dynamic capabilities; family firms; emerging economy.

DOI: 10.1504/JIBED.2018.095173

Journal for International Business and Entrepreneurship Development, 2018 Vol.11 No.3, pp.221 - 242

Received: 22 Mar 2018
Accepted: 02 Apr 2018
Published online: 01 Oct 2018 *

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