Family Firms and Investment Innovation
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Date
2023-11-27Author
Wajdi, Farid
Fauziah, Fenty
Latief, Azhar
Said, Muhammad
Rislawati, Nita
Metadata
Show full item recordAbstract
This study, with the aim of improving the performance of small and medium-sized companies,
expresses the impact of the decision-making of managers and entrepreneurs of these companies in the
direction of investment innovation in today’s business conditions with wide variables and technological growth.
This paper focuses on the phenomenon of innovation within family businesses, seeking to identify and analyse
its role in enhancing family-owned firms. The research investigates the influence of family ownership, family
management involvement, internationalization strategies, and company size on innovation within the context
of family-owned manufacturing companies listed on the Indonesia Stock Exchange. Data spanning is the
2019-2021 period, collected from annual reports and announcements of these manufacturing firms, reveals
that family ownership and firm size correlate with investment in innovation. However, the recruitment of family
management and the implementation of family-owned business internationalization strategies appear to
exert limited influence on innovation activities. Considering the importance of family companies in economic
and technical progress and the complexities and changing conditions governing their business environment,
this research main contribution is to show how managers and entrepreneurs make decisions in investment
innovation according to the conditions of governing in family small and medium companies.