On external knowledge sources and innovation performance: Family versus non-family firms

External knowledge has been found to be vital in generating innovation. However, little is known about the conditions under which firms can benefit from utilizing specific external knowledge sources. Using the knowledge-based view as our theoretical underpinning, we empirically examine how the usage of knowledge gained from market- and science-based sources influences innovation performance differently between family and non-family firms. An analysis using panel data drawn from Belgian firms supports our hypothesis that the relationship between the use of knowledge gained from suppliers and customers and innovation outcomes is weaker for family firms than for non-family firms, while the relationship between the use of knowledge gained from universities and research institutes and innovation outcomes is stronger for family firms. This study extends the literature by revealing the role firm type (i.e., family versus non-family) plays in moderating the relationship between the use of knowledge obtained from distinct external sources and innovation performance. • Firm type (family versus non-family) affects the impact of knowledge usage from specific external sources on innovation performance. • Impact of knowledge usage from market-based sources on innovation outcome is weaker for family than for non-family firms. • Impact of knowledge usage from science-based sources on innovation outcome is stronger for family than for non-family firms. • Our results support our hypotheses building on the knowledge-based view, tie strength and formalization literature.