Identifying Factors that Drive Product Innovation in the Context of Family Firms

Abstract

There are numerous factors serving product innovation. Considering the importance of product innovation in terms of business development of companies as a whole, the goal of this study is to capture a series of variables that are important to product innovation in light of previous studies, and associates those factors with the Advanced Battery Project recently explored by HOPPECKE Batteries GmbH & Co. KG. Further, the study hammers at identifying competitive advantages of family firms over non-family firms through the analysis of bundle of resources and capabilities that are owned and controlled within the firm. Underlying the recognition of sustained competitive advantages coming from a different portfolio of firm resources, a model then is developed with involvement of both industrial environmental factors and resource-based influences on product innovation. Especially, HOPPECKE Batteries GmbH & Co. KG as a medium-sized family business, the bundle of resources it holds much benefit from family involvement, which is identified as “familiness”. It positively feeds the product innovation process with providing organizational capabilities.