Innovation, Growth, and Succession in Asian Family Enterprises
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Innovation, Growth, and Succession in Asian Family Enterprises

Edited by Hung-bin Ding, Hsi-Mei Chung, Andy Yu and Phillip H. Phan

The scope and depth of family business research have been quickly expanding in the last two decades. The editors and contributors to this book present eight recent studies examining the impact of external or internal family conditions on the innovation, growth, and succession of family firms in Asia.
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Chapter 2: When and how high family involvement helps a family business: The role of long-term orientation and innovativeness

Dina L. Taylor, Soroush Aslani and Dexi Zheng

Abstract

Drawing upon the familiness paradigm, we develop a moderated mediation theoretical model on family businesses and propose a series of relationships from family involvement to firm performance. We propose that the presence of long-term orientation (LTO) in a family firm can facilitate a positive relationship between family involvement and firm performance, because it promotes an innovativeness mindset in the family firm. In this regard, LTO can serve as an important moderator, and innovativeness can serve as an important mediator, in the relationship between family involvement and firm performance. Implications of this model for research and practice are also discussed.

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