Management quality and innovation in family business: an empirical study

The paper shedsnew lighton innovation performance of family firms and theinterlink between business administration, family governance and innovation output. Paradoxically, family firms seem to innovate less, despite their ability to innovate more. Family firms are heterogeneous and face a triple efficiency requirement in order to survive the competition: different approaches highlight that efficient business administration / management quality, efficient family governance as well as efficient innovation management are all needed. Research at the intersection of these three areas is rare and only a few empirical studies deal with the influencing factors behind innovation in family firms. In this paper we investigate the influence of management quality and governanceon innovation performance of Hungarian family firms by using empirical data. The paper concludes with advices that can be given to policy makers to support family businesses