The Impact Of Family Involvement On Firm's Technological Innovation

Since the reform and opening up,the family business has re-emerge,full of vitality.Family business is now facing the important problem of "family business evergreen",and technological innovation is an important guarantee for the sustainable development of family business,which makes the research of family business technology innovation both academic and practical meaning.Research has focused on the problem,and carried out a certain exploration,but there are still less concerned about the paradox theory and research conditions and so on.Therefore,this paper chooses the data of A-share listing in mainland China,analyzes and tests the direct relationship between family involvement and enterprise technological innovation input,as well as the possible situational factors from two aspects:strategic option and governance structure.The above research design makes up for the lack of present research to a certain extent.In order to deeply understand the family business and its technological innovation,this paper firstly collects the classical literature in not only domestic but also foreign family enterprise technology innovation field,sorts out a series of approaches that family were involved in these documents in terms of certain logic,and summarizes the existing research on the technological innovation of the family business.Furthermore,this paper discusses the hypothesis of this paper from the three aspects:the integrated conflicted arguments of the direct correlation of the family involvement and enterprise technological innovation,the adjustment of other strategic options and the adjustment of corporate management.Through a certain standard,this paper selected 1769 Chinese A-share listed companies'observed values as the study samples.Through the methods such as the correlation analysis and multiple regression analysis,this paper finds that:Firstly,despite the existence of contrary logic,there is a significant negative correlation between family involvement and enterprise technological innovation,that is,the stronger the "family",the lower the level of technological innovation is.Secondly,the international strategy has a moderating effect on the main effect.In the enterprise s with deep level of internationalization,the family involvement is less effective in the inhibition of technological innovation.Thirdly,the degree of human capital redundancy has a moderating effect on the main effect.In the enterprises with sufficient human capital,the family involvement is also less effective in the inhibition of technological innovation.Fourthly,the complexity of the management situation has a moderating effect on the main effect.In the case the board of directors is with relatively high externalities,the family involvement plays a lot in the inhibition of technological innovation.The performance expectation gap is playing a secondary adjustment role on the main effect.In the enterprises with dissatisfied performance expectations,the board of directors suppresses the main effect to a deeper degree with the external effect.Further test results have shown that the above conclusions are relatively valid.The main innovations of this paper are as follows:Firstly,it sorts out the two paradox sides of family business technological innovation,and the proof of its net effect is validated by the empirical evidence,which corresponds with the argument of conflict desirably.The second is enriching the ideas about the influential elements of family business' behavior for innovation,which proves that the family involvement will possibly deviate the enterprise decision-making from the economic objectives,providing new empirical evidence to the argument that the emotional purpose preservation should be regarded as the reference of decision-making in order to dominate the family.Thirdly,taking the ties of blood and the traditional Chinese "ritual"into account,based on the concept of "affinity",it constructs the measure of the complexity of the governance situation in order to dominate the family.Fourthly,it finds an applicable boundary of the behavioral agent theory.Through the antagonistic hypothesis,it is found that the behavioral agent theory may be more suitable for the decentralization or the separation of ownership and management rights,and when the enterprise management situation is complex,the validity of its interpretation will be limited.