To Support or Not to Support the Innovation? A Preliminary Study on the Effect of Family Ownership in Board on Innovation in Taiwan Family Firms

2021 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) Pub Date : 2021-12-13 DOI:10.1109/IEEM50564.2021.9673023

Jung-Ching Lin

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Abstract

The uncertainty of outcomes from innovation typically affects related decision-making in family firms. Innovation presents both opportunities for business growth and investment risks, and the relationship between family firms and innovation remains inconclusive. Moreover, the interplay between family firm ownership and control rights may result in agency problems. Ownership by family members can be regarded as a real option for family shareholders. Thus, we combine agency theory and the real option view to argue that ownership structure characteristics among family members in board affect innovation in family firms. Examination of the innovation behaviors of Taiwanese family firms reveals that ownership concentration among family board directors positively influences innovation in family firms. In addition, family board directors without personal ownership in the family firm are more supportive of innovation than those who have such ownership.

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支持还是不支持创新?台湾家族企业董事会家族持股对创新影响之初步研究

创新结果的不确定性通常会影响家族企业的相关决策。创新为企业成长提供了机遇，也带来了投资风险，家族企业与创新之间的关系尚无定论。此外，家族企业所有权和控制权之间的相互作用可能导致代理问题。家族成员持股可以被视为家族股东的一种现实选择。因此，我们将代理理论与实物期权理论相结合，论证了家族企业董事会成员的所有权结构特征对家族企业创新的影响。对台湾家族企业创新行为的研究发现，家族董事的股权集中度对家族企业创新具有正向影响。此外，在家族企业中，没有个人所有权的家族董事比拥有个人所有权的家族董事更支持创新。

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2021 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM)

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