Innovation in Family Businesses - A Conceptual Framework with Case Studies of Industrial Family Firms in the German "Mittelstand"
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1 Innovation in Family Businesses - A Conceptual Framework with Case Studies of Industrial Family Firms in the German "Mittelstand" DISSERTATION of the University of St. Gallen, Graduate School of Business Administration, Economics, Law and Social Sciences (HSG) to obtain the title of Doctor of Business Administration submitted by Stefanie Leenen from Germany Approved on the application of Prof. Dr. Martin Hilb and Prof. Ludo Van der Heyden, PhD Dissertation no Difo-Druck GmbH, Bamberg 2005
2 Contents Preface Contents List of Tables and Figures List of Abbreviations III V IX XI 1 Introduction Research Motivation Economic Importance of Family Firms and the German "Mittelstand" Relevance Gaps in the Literature Statement of the Problem Definitions Family Firms in the German "Mittelstand" Innovation Innovation in German "Mittelstand" Family Firms Research Approach Scientific Approach Structural Approach 12 2 Literature Review Discussing Knowledge about Family Firms Particular Characteristics of Family Firms Challenges in Family Firm Research Definition Issues Deficits in Data-Gathering Methods Lack of Comparative Studies Lack of Longitudinal Studies No Stand-Alone Research Field Diversity of Theories and Concepts Changes in the Family System Variety of Research Languages Relevance of Topics Conclusion and Implications Strategic Management in Family Firms Goals and Objectives 28
3 VI Contents Strategy Formulation and Content Family Firm Resources and Capabilities Physical Capital Human Capital Financial Capital Organizational Capital Environmental Opportunities and Treats Strategic Planning and Business Strategy Business Ethics and Social Responsibility Strategy Implementation and Control Conflict Culture Leadership and Ownership Performance Conclusion and Implications 2.2 Discussing Knowledge about Innovation Challenges in Innovation Research Structuring Innovation Research Industry Level Organizational Level Firm Characteristics and Innovation Size and Innovation Ownership and Innovation Location and Innovation Strategy and Innovation Sources of Innovation Timing of Innovation Performance and Innovation Organizational Characteristics Structure Culture Conclusion and Implications Innovation Level Product and Process Innovation Degree of Innovation Stages of the Innovation Process Conclusion and Implications 2.3 Innovation and Family Firms 2.4 Conclusion and Implications
4 Contents 3 A System Innovation Framework for Family Firms Overview of the Conceptual Framework Components of the Conceptual Framework Family Firm Goals Family Firm Resources Physical Capital Human Capital Financial Capital Organizational Capital Innovation Characteristics Process and Product Innovation Degree of Innovation Stages of the Innovation Process Interplay of Framework Components Interplay of Resources and Goals Goals and Resources Physical Resources and Goals s Human Resources and Goals Financial Resources and Goals Organizational Resources and Goals Interplay of Resources and Innovation Physical Resources and Innovation Human Resources and Innovation Financial Resources and Innovation Organizational Resources and Innovation Innovation and Capital Resources Interplay of Goals and Innovation Conclusion and Implications 4 Empirical Study 4.1 Research Objective 4.2 Research Methodology Case Study Method Selection and Definition of the Cases 4.3 Research Procedures Data Collection Data Analysis 4.4 Research Findings Case Study I: MollerGroup, Bielefeld ( ) Part I: History of the Moller Group VII
5 VIII st Generation: Foundation of the Moller Company Diversification and Internationalization of the Business nd Generation: Foundation of the Tannery rd Generation: Diverse Entrepreneurial and Political Activities th Generation: Foundation of the Machinery Company and Social Activism th Generation: Further Innovation in the Tannery and Family as a Critical Resource in Difficult Times th Generation: Venture into Plastics Part II: The Era of Dr. Peter v. Moller Business Model Innovation in the Tannery The Sale of the V-Belt Business Venturing Internationally Necessary Commitments to Innovation Case Analysis and Implications Case Study II: Endress+Hauser Conducta, Gerlingen Overview Innovative Activities Case Analysis and Implications Case Study III: SchreinerGroup, OberschleiBheim Overview Innovative Activities Case Analysis and Implications 4.5 Discussion of Research Findings 5 Conclusion and Implications 5.1 Conclusion 5.2 Implications Practical Implications Theoretical Implications 6 Questionaire 7 Literature 8 Index of Interview Partners
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