Skip to main content
SpringerLink
Log in
Book cover

Global Business Strategies in Crisis pp 201–213Cite as

Building Innovative Strategies for the Competitiveness of Family Firms in Emerging Markets

  • Chapter
  • First Online:

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Studies based on the relationship between the evolution of family firms and their innovative performance have been rare in family-business research. This chapter reviews the characteristics of family firms and their relation to innovation strategies in emerging markets, with the case of Turkish family firms, and provides an explorative analysis of the relationship between the factors affecting the development of family business and their innovative strategies in Turkey. The most prevalent characteristics of Turkish family firms that affect their innovation decisions are the collectivist family culture, pragmatic growth decisions, and paternalistic control tendencies. The differences based on these characteristics should affect their approach to innovation differently. Founders follow an exploitative innovation strategy. Later generations coming after the founder generation generally focus on more exploratory strategies to meet market demands. By the third generation, as the firm has institutionalized, they try to balance the two forms of innovation by using their resources and exploring environmental opportunities in the form of ambidexterity.

The material in this chapter is supported in part by the The Scientific and Technological Research Council of Turkey (TÜBİTAK) under SOBAG grant 113 K280. Any opinions, findings and conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the TÜBİTAK.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Agca V, Kizildag D (2013) Linking generational involvement to intrapreneurship activities in Turkish family firms: an empirical study. Bus Manag Dyn 2(12):47–57

    Google Scholar 

  • Allison TH, McKenny AF, Short JC (2014) Integrating time into family business research: using random coefficient modeling to examine temporal influences on family firm ambidexterity. Fam Bus Rev 27(1):20–34

    Article  Google Scholar 

  • Altindag E, Zehir C, Acar AZ (2011) Learning, entrepreneurship and innovation orientations in Turkish family-owned firms. Emerg Mark J 1(2):36–47

    Article  Google Scholar 

  • Anderson RC, Sattar AM, Reeb DM (2003) Founding family ownership and the agency cost of debt. J Financ Econ 68:263–285

    Article  Google Scholar 

  • Astrachan JH (2003) Commentary on the special issue: the emergence of a field. J Bus Ventur 18:567–572

    Article  Google Scholar 

  • Astrachan JH, Allen IE (2003) MassMutual/Raymond Institute American family business survey. Mass Mutual Financial Group, Springfield, MA

    Google Scholar 

  • Astrachan JH, Shanker MC (2003) Family businesses’ contribution to the U.S. economy: a closer look. Fam Bus Rev 26(3):211–219

    Google Scholar 

  • Astrachan JH, Zahra SA, Sharma P (2003) Family-sponsored ventures. Kaufman Foundation, Kansas, MO

    Google Scholar 

  • Aycan Z, Kanungo RN (1997) Current issues and future challenges in expatriate management. In: Saunders DM, Aycan Z (eds) New approaches to employee management, vol 4. JAI Press, Greenwich, CT, pp 245–260

    Google Scholar 

  • Baraz BA (2008) Aile işletmelerinin algılarıyla inovasyon. 3. Aile İşletmeleri Kongresi, İstanbul Kültür Üniversitesi, İstanbul

    Google Scholar 

  • Beck L, Janssens W, Debruyne M, Lommelen T (2011) A study of the relationship between generation, market orientation, and innovation in family firms. Fam Bus Rev 24(3):252–272

    Article  Google Scholar 

  • Bergfeld MMH, Weber FM (2011) Dynasties of innovation: highly performing German family firms and the owners’ role for innovation. Int J Entrep Innov Manag 13(1):80–94

    Google Scholar 

  • Brun de Ponet S, Wrosch C, Gagne M (2007) An exploration of the generational differences in levels of control held among family business approaching succession. Fam Bus Rev 20:337–353

    Article  Google Scholar 

  • Bugra A (1994) State and business in modern Turkey: a comparative study. Suny Press, Albany, NY

    Google Scholar 

  • Caliskan S (2008) Overview of family business relevant issues country Fiche Turkey. European Commission Project Report in the framework of the study “Overview of Family Business Relevant Issues”

    Google Scholar 

  • Chen H-L, Hsu W-T (2009) Family ownership, board independence, and R&D investment. Fam Bus Rev 22(4):347–362

    Article  Google Scholar 

  • Chrisman JJ, Patel PC (2012) Variations in R&D investments of family and nonfamily firms: behavioral agency and myopic loss aversion perspectives. Acad Manag J 55(4):976–997

    Article  Google Scholar 

  • Chrisman JJ, Memili E, Misra K (2013) Nonfamily managers, family firms, and the winner’s curse: the influence of noneconomic goals and bounded rationality. Enterp Theory Pract 38(5):1103–1127

    Article  Google Scholar 

  • Chung CN, Luo X (2008) Institutional logics or agency costs: the influence of corporate governance models on business group restructuring in emerging economies. Organ Sci 19(5):766–784

    Article  Google Scholar 

  • Classen N, Carree M, Gils AV, Peters B (2014) Innovation in family and non-family SMEs: an exploratory analysis. Small Bus Econ 42:595–609

    Article  Google Scholar 

  • Criscuolo C, Haskel JE, Slaughter MJ (2004) Why are some firms more innovative? Knowledge inputs, knowledge stocks and the role of global engagement. Tuck School of Business, Hanover, NH

    Google Scholar 

  • Cruz C, Norqvist M (2007) Environmental factors and entrepreneurial orientation in family business. In: 3rd Eiasm workshop on family firms management research, Jonkoping

    Google Scholar 

  • Damanpour F, Evan WM (1984) Organizational innovation and performance: the problem of organizational lag. Adm Sci Q 29:392–409

    Article  Google Scholar 

  • De Massis A, Frattini F, Lichtenthaler U (2013) Research on technological innovation in family firms: present debates and future directions. Fam Bus Rev 26(1):10–31

    Article  Google Scholar 

  • De Massis A, Frattini F, Pizzurno E, Cassia L (2015) Product innovation in family versus non-family firms: an exploratory analysis. J Small Bus Manag 53(1):1–36

    Article  Google Scholar 

  • Dooley RS, Fryxell GE, Judge WQ (2000) Belaboring the not-so-obvious: consensus, commitment, and strategy implementation speed and success. J Manag 26(6):1237–1257

    Google Scholar 

  • Dyer WG (1988) Culture and continuity in family firms. Fam Bus Rev 1(1):37–50

    Article  Google Scholar 

  • Erdil O, Ciğerim E, Gök MŞ (2004) Aile İşletmelerinde Yönetim Biçimleri Üzerine Bir Literatür Araştırması. I. Aile İşletmeleri Kongresi, Kültür Üniversitesi, İstanbul

    Google Scholar 

  • Erdogmus N (2007) Aile işletmeleri: yönetim devri ve ikinci kuşağın yetiştirilmesi. İGİAD Yayınları

    Google Scholar 

  • Erdogmus N, Olcay GA, Erdemir E (2014) Factors affecting the evolution of family businesses and their innovation performances: the case of Turkey. 10th workshop on family management research innovation family firms and economic development, May 23–24, Bergamo, Italy

    Google Scholar 

  • Erdogmus N, Olcay, GA, Erdemir E (2015) Factors that affect the evolution of Turkish family businesses and their innovation performances. Research Project (No: 113K280) supported by The Scientific and Technological Research Council of Turkey (TUBITAK)

    Google Scholar 

  • Fikret-Pasa S, Kabasakal H, Bodur M (2001) Society, organisations, and leadership in Turkey. Appl Psychol 50(4):559–589

    Article  Google Scholar 

  • Gerni GM (2013) Evaluating the effects of market and innovation orientations on family owned firms’ performance: an empirical study in Istanbul. Adv Manag Appl Econ 3(5):139

    Google Scholar 

  • Gomez-Mejia L, Haynes KT, Nunez-Nickel M, Jacobson KJL, Moyano-Fuentes J (2007) Socioemotional wealth and business risks in family-controlled firms: evidence from Spanish olive oil mills. Adm Sci Q 52:106–137

    Google Scholar 

  • Gopalakrishnan S, Damanpour F (1997) A review of innovation research in economics, sociology and technology management. Omega 25(1):15–28

    Article  Google Scholar 

  • Guillen MF (2000) Business groups in emerging economies: a resource-based view. Acad Manag J 43(3):362–380

    Article  Google Scholar 

  • Gunduz L, Tatoglu E (2003) A comparison of the financial characteristics of group affiliated and independent firms in Turkey. Eur Bus Rev 15(1):48–54

    Article  Google Scholar 

  • Günver BA (2002) Aile işletmelerinin yapısı ve geleceği-Türk işletmelerinin gelecek kuşak yöneticilerinin önemli özelliklerini belirlemeye yönelik bir araştırma. İstanbul: İstanbul Kültür Üniversitesi Yayınları (18)

    Google Scholar 

  • Gupta A, Das A (2008) Sustaining entrepreneurship in family business. Paper presented at the First Asian Invitational Conference on Family Business, Indian School of Business

    Google Scholar 

  • Hofstede G (1980) Culture and organizations. Int Stud Manag Organ 10(4):15–41

    Article  Google Scholar 

  • Kabasakal H, Bodur M (2002) Arabic cluster: a bridge between East and West. J World Bus 37(1):40–54

    Article  Google Scholar 

  • Kabasakal H, Bodur M (2007) Leadership and culture in Turkey: a multi-faceted phenomenon. In: Chhokar J, Brodbeck F, House R (eds) Managerial cultures of the world: a GLOBE report of in-depth studies of the cultures of 25 countries. Lawrence Erlbaum Associates, Mahwah, NJ

    Google Scholar 

  • Karpuzoglu E (2002) Büyüyen ve gelişen aile şirketlerinde kurumsallaşma. Hayat Yayıncılık, İstanbul

    Google Scholar 

  • Kaya N, Aytekin M (2004) Aile işletmelerinin ekonomik krizlere karşı uygulamış oldukları stratejilerin, performans üzerindeki etkileri: gaziantep’te faaliyet gösteren aile işletmelerinde bir uygulama, 1st edn. Aile İşletmeleri Kongresi, İstanbul

    Google Scholar 

  • Kellermanns FW, Eddleston KA, Barnett T, Pearson A (2008) An exploratory study of family member characteristics and involvement: effects on entrepreneurial behavior in the family firm. Fam Bus Rev 21(1):1–14

    Article  Google Scholar 

  • Kellermanns FW, Eddleston KA, Sarathy R, Murphy F (2012) Innovativeness in family firms: a family influence perspective. Small Bus Econ 38:85–101

    Article  Google Scholar 

  • Kirim A (2001) Aile şirketlerinin yönetimi. Sistem yayıncılık, İstanbul

    Google Scholar 

  • Kozan MK, Ilter SS (1994) Third party roles played by Turkish managers in subordinates’ conflicts. J Organ Behav 15(5):453–466

    Article  Google Scholar 

  • Kozan MK, Öksoy D, Özsoy O (2006) Growth plans of small businesses in Turkey: individual and environmental influences. J Small Bus Manag 44(1):114–129

    Article  Google Scholar 

  • Ling Y, Kellermanns FW (2010) The effects of family firm specific diversity: the moderating role of information exchange frequency. J Manag Stud 47(2):332–344

    Article  Google Scholar 

  • Litz RA, Kleysen RF (2001) Your old men shall dream dreams, your young men shall see visions: toward a theory of family firm innovation with help from the Brubeck family. Fam Bus Rev 14(4):335–351

    Article  Google Scholar 

  • Marcoulides GA, Yavas BF, Bilgin Z, Gibson CB (1998) Reconciling culturalist and rationalist approaches: leadership in the United States and Turkey. Thunderbird Int Bus Rev 40(6):563–583

    Article  Google Scholar 

  • McConaughy DL, Philips GM (1999) Founders versus descendants: the profitability, efficiency, growth characteristics and financing in large, public, founding-family controlled firms. Fam Bus Rev 12:123–131

    Article  Google Scholar 

  • Munoz-Bullon F, Sanchez-Bueno MJ (2011) The impact of family involvement on the R&D intensity of publicly traded firms. Fam Bus Rev 24(1):62–70

    Article  Google Scholar 

  • Naldi L, Nordqvist M, Sjoberg K, Wiklund J (2007) Entrepreneurial orientation, risk taking, and performance in family firms. Fam Bus Rev 20(1):33–47

    Article  Google Scholar 

  • Ozcan GB (1995) Small business network and local ties in Turkey. Entrep Region Dev 7:265–282

    Article  Google Scholar 

  • Ozcan GB (2006) A critical analysis of decentralisation and local economic development: the Turkish case. Environ Plann C Gov Policy 24(1):117–138

    Article  Google Scholar 

  • Ozdemir ÖG (2013) The Nexus between entrepreneurship process and value of innovation: a conceptual model including cognitive and institutional factors. Akademik Bakış Dergisi, Sayı: 35. Mart-Nisan

    Google Scholar 

  • Ozsoy O, Oksoy D, Kozan K (2001) The characteristics of Turkish entrepreneurs and their enterprises. College of Business, Alfred University, Long Island, NY

    Google Scholar 

  • Pappas C (1984) Strategic management of technology. J Prod Innov Manag 1:30–35

    Article  Google Scholar 

  • Patel PC, Fiet JO (2011) Knowledge combination and the potential advantages of family firms in searching for opportunities. Entrepr Theory Pract 35(6):1179–1197

    Article  Google Scholar 

  • Ritter T, Gemunden HG (2003) Network competence: its impact on innovation success and its antecedents. J Bus Res 56:745–755

    Article  Google Scholar 

  • Salvato C (2004) Predictors of entrepreneurship in family firms. J Priv Equity 7(3):68–76

    Article  Google Scholar 

  • Sayli H, Agca V (2009) Aile İşletmelerinde Aile Kültürününün İç Girişimcilik Eğilimleri Üzerine Etkisi: Afyon-Denizli-Uşak Örneği. Is, Guc: J Ind Rel Hum Resour 11(2)

    Google Scholar 

  • Sharma P, Salvato C (2011) Commentary: exploiting and exploring new opportunities over life cycle stages of family firms. Enterp Theory Pract 35(6):1199–1205

    Article  Google Scholar 

  • Shepherd D, Zahra S (2003) From conservatism to entrepreneurialism: the case of Swedish family firms, Unpublished paper. University of Colorado, Boulder, CO

    Google Scholar 

  • Sorenson RL, Folker CA, Brigham KH (2008) The collaborative network orientation: achieving business success through collaborative relationships. Enterp Theory Pract 32:615–634

    Article  Google Scholar 

  • Spriggs M, Yu A, Deeds D, Sorenson RL (2012) Too many cooks in the kitchen: innovative capacity, collaborative network orientation, and performance in small family businesses. Fam Bus Rev 26(1):32–50

    Article  Google Scholar 

  • Tidd J, Bessant J, Pavitt K (2001) Managing innovation: integrating technological, market and organizational change. Wiley, Chichester

    Google Scholar 

  • Trott P (2008) Innovation management and new product development. Financial Times/Prentice Hall, Harlow

    Google Scholar 

  • Trompenaars F, Hampden-Turner C (1998) Riding the waves of culture. McGraw-Hill, New York

    Google Scholar 

  • Turgut G ve Dicle A (2004) İMKB’de Yer Alan Aile Sirketlerinin Yönetim Kurulu Olusumları ve Finansal Performansları. 1. Aile İşletmeleri Kongresi, İstanbul Kültür Üniversitesi, İstanbul

    Google Scholar 

  • Ward JL (1997) Growing the family business: special challenges and best practices. Fam Bus Rev 10(4):323–337

    Article  Google Scholar 

  • Yamak S ve Oktem Y (2008) Türkiye’deki Aile şletmelerinde Genel Müdürlerin Konumu. 3. Aile İşletmeleri Kongresi, İstanbul Kültür Üniversitesi, İstanbul

    Google Scholar 

  • Yildirim O, Üsdiken B (2007, August) Reconciling family-centric and professionalized governance: boards of firms within family business groups. In: Academy of Management Proceedings (vol 2007, No. 1, pp 1–7). Academy of Management

    Google Scholar 

  • Yildirim‐Oktem Ö, Üsdiken B (2010) Contingencies versus external pressure: professionalization in boards of firms affiliated to family business groups in late‐industrializing countries. Br J Manag 21(1):115–130

    Article  Google Scholar 

  • Yurtoglu BB (2000) Ownership, control and performance of Turkish listed firms. Empirica 27(2):193–222

    Article  Google Scholar 

  • Zahra SA (2005) Entrepreneurial risk taking in family firms. Fam Bus Rev 23(1):23–40

    Article  Google Scholar 

  • Zahra SA, Hayton JC, Salvato C (2004) Entrepreneurship in family vs. non-family firms: a resource-based analysis of the effect of organizational culture. Enterp Theory Pract 28:363–381

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Business Administration, School of Economics and Administrative Sciences, Yildiz Technical University, Davutpaşa Mah. Davutpaşa Caddesi, 34220, Esenler-Istanbul, Turkey

    Nihat Erdoğmuş

  2. Department of International Trade and Management, School of Business, Istanbul Sehir University, Kusbakisi Cd. No: 27, 34662, Altunizade, Üsküdar-Istanbul, Turkey

    Gökçen Arkali Olcay

  3. Department of Management, School of Management and Administrative Sciences, Istanbul Sehir University, Kusbakisi Cd. No: 27, 34662, Altunizade, Üsküdar-Istanbul, Turkey

    Erkan Erdemir

Authors
  1. Nihat Erdoğmuş
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Gökçen Arkali Olcay
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Erkan Erdemir
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Nihat Erdoğmuş .

Editor information

Editors and Affiliations

  1. Istanbul Medipol University, Beylikduzu, Istanbul, Turkey

    Ümit Hacioğlu

  2. Istanbul Medipol University , Eyup, Istanbul, Turkey

    Hasan Dinçer

  3. Istanbul Medipol University , Zeytinburnu, Istanbul, Turkey

    Nihat Alayoğlu

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Erdoğmuş, N., Olcay, G.A., Erdemir, E. (2017). Building Innovative Strategies for the Competitiveness of Family Firms in Emerging Markets. In: Hacioğlu, Ü., Dinçer, H., Alayoğlu, N. (eds) Global Business Strategies in Crisis. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-44591-5_14

Download citation

Publish with us

Policies and ethics

Search

Navigation