Management summary research study “CEO satisfaction and SME innovation: unveiling the role of family involvement”
Authors:
The aim of the study
The attitude of small and medium-sized enterprises (SMEs) to innovation is ambiguous. The authors of the study have examined how CEO satisfaction with business performance affects firm Innovation. As expected, CEO satisfaction with firm performance predicts innovation activities, with greater satisfaction with performance tending to make slack resources available for new strategic options. The results show that the effect of process innovation, but not product innovation, can be interpreted as it has been in prior empirical findings. The authors have examined how the family involvement affects this relationship.
Findings
The results show that family involvement moderates the relation between CEO satisfaction and product innovation. Ultimately, the more the family is involved in the company, or the larger the number of family members working in the company, the more the company’s innovation activity is reflected in product innovations. This is an important finding, which in turn can boost firm revenues and it has a positive effect on GDP.
Methodology and data
The family firms were identified using the Amadeus database. The responses from 308 Czech SMEs returned. The multiple mediation and moderated mediation analyses was applied.
Detailed description of the findings of practice
So, family business is worth supporting at all levels. It brings us companies focused on long-term goals with high innovation potential in the field of production. And this can lead to an increase in GDP.
Target groups of stakeholders: Public administration and consulting organizations
Citation: Aliaa El Shoubaki, Issam Laguir, Rébecca Stekelorum & Jiří Hnilica (2022) CEO satisfaction and SME innovation: unveiling the role of family involvement, Applied Economics, DOI: 10.1080/00036846.2022.2059437
Source: https://www.tandfonline.com/doi/full/10.1080/00036846.2022.2059437