Family firms and innovation: a revisit to SEW perspective

Extant literature on innovation in family firms has generated mixed results regarding the preference of family firms for innovation. By integrating literature on family ownership and management, we propose an inverted U-shaped relationship between family firm ownership concentration and innovation. Our Poisson regression-based model on a sample of 532 family firms from India for ten years shows that family ownership concentration follows an inverted U-shaped relationship with innovation. Our findings further suggest that the family CEO moderates this inverted U-shaped relationship.