Family Firm Behavior and Resources, Exploration and Exploitation Strategies Toward Innovation in Family Business

The importance of family firm innovation in the economic growth has led to the increasing of scholars’ attention to the researches on innovation management in family firms. Despite the unique behaviour of family firms, which gives an advantage in becoming innovative, some of the family firms are reluctant to invest in innovation due to high commitment in human skills, financial resources, and high technology. A research on innovation in family firms is important in understanding the family firms’ behaviour in innovation and improving their current strategy to sustain in the market. The objective of this study is to review the innovation literature in the family firms. This study also proposes a conceptual model to further understand the link between exploration and exploitation strategies with the family firm behaviour and resources for successful innovation.