Research On The Influence Factors And Capacity Measurement Of Family Firm Innovation

The family firm is an important force in Chinese economy,and innovation becomes a necessary factor in the process of transformation and up-grading.Family firm is the important supporting force of Chinese economy and makes efforts to develop creatively and promoting to transform and upgrade.On the basis of vast research on the domestic and foreign literature,the paper attaches importance on the effect factors of family firm innovation,and researches the effect of governance structure and socioemotional wealth(SEW)on the family firm innovation.Then this paper establishes the innovation strategy format on the basis of two effect factors and discusses further influence of family firm innovation from the perspective of risk orientation,goal of innovation and diversity of knowledge.At the same time,the creativity of this paper leads evaluation research into the field of family firm innovation,discussing further about the quantitative assessment of the process and ability of family firm innovation.The paper puts forward the following 4 questions:(1)Under the framework of agency theory and stewardship theory,the paper starts from the family governance structure and researches the impact of objective factors on family firm innovation;(2)Under the framework of socioemotional wealth(SEW),heterogeneity is studied from the family non-economic objectives,and we explore its influence on family firm innovation;(3)The paper combines the family governance structure with the socioemotional wealth(SEW)and sets up strategy framework of family firm innovation through the multi-dimensional configuration.It further clarifies the family firm innovation strategies and driving factors;(4)The paper combines family firms features with subjective and objective factors affecting family firm innovation,and creates an evaluation variable index of family firm innovation ability.Then it selects an appropriate ability evaluation model and tests data,in order to make a breakthrough in the field of quantitative evaluation of family firm innovation capabilities.The paper makes the following conclusions.(1)The conclusion of relationship between family firm innovation and governance structure.According to family involving heterogeneity,we make researches in three aspects of family equity involvement,family board involvement and family management involvement.Research shows that different family governance structure has different effects on family firm innovation.The degree of family equity involvement has a negative effect on innovation,while the degree of family board involvement has a positive influence on innovation.Although the negative influence of family management involvement on the innovation is not significant.At the same time,the enterprise ownership has significant influence on family firm innovation;(2)The conclusion of relationship between family firm innovation and socioemotional wealth(SEW).Family firm socioemotional wealth(SEW)has heterogeneity which means different SEW has different effects on the family firm innovation.The family control intention is negatively correlated with innovation,while the family inheritance intention has a positive effect.At the same time,a good innovation environment can provide family firm with a more comprehensive security system,while innovation can support and effectively regulate and promote innovation investment activities.(3)Family firm innovation strategy framework.According to two dimensions of governance structure and socioemotional wealth(SEW),the framework of family firm innovation strategy type divides family firms into four categories,each with different characteristics and having various effects on innovation.Limited innovative family firm innovation ranks the last,while the intention innovative and potential innovative family firms having moderate innovation.Positive innovative family firm ranks the highest in innovation.BYD’s case analysis confirms that the comprehensive analysis of the factors have important impacts on the development of family firm innovation;(4)According to the characteristics of family firm innovation,combined with the previous research on its influencing factors,this thesis establishes a set of measurement index consisting of 23 variables in 3 levels and 5 aspects.This system evaluates the comprehensive ability of family firm innovation from the innovation investment capacity,the output ability,the entrepreneurial spirit,the internal and external environment of the family firm.This paper also selects the fuzzy hierarchical principal component analysis model and 10 family firms as the sample for data verification.The result is clear and orderly,which clearly reflects the comprehensive ability of the family firm innovation and proves that the foundation of the measurement index and the selected model are successful.In conclusion,This paper makes theoretical contribution to the research of relevant theories through theoretical deduction,empirical analysis,case analysis and measurement index.It further completes and develops the research on influencefactors of family firm innovation.Further,the paper introduces a new variable in the field of family firm and makes a breakthrough in the SEW heterogeneity analysis and variable assignment;The established family firm innovation strategy framework surpasses the current study on single-dimensional heterogeneity of family firm.The paper further clarifies the family firm innovation strategy and driving factors through multi-dimensional configuration;Family firm innovation capability measurement index fills the gap in the field of evaluation,it achieves a quantitative evaluation of family firm innovation comprehensive capabilities and further enriches the family firm innovation theory research.The research of the paper is helpful to clarify the key nodes to promote family firm innovation,improve the family governance structure,cultivate the entrepreneurial spirit,optimize the innovation decision-making system and further improve the innovation environment construction.At the same time,the construction of innovative measurement index provides an important quantitative support for enterprise self-evaluation and is also a strong support for government departments to assess the innovation level of a region,a department or an enterprise and to implement innovative incentive policies.The index also makes contribution to promote the prosperity of family firm from generation to generation,establish long-term development mechanism,to promote innovation strategy development and to ultimately complete the transformation and upgrading.