Knowledge Combination and the Potential Advantages of Family Firms in Searching for Opportunities

This study examines differences in knowledge structures and combinative capabilities that provide family firms with distinct advantages over nonfamily firms in identifying opportunities. Drawing on constrained, systematic search, we explore how noneconomic goals and family relations enhance searchin...

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Bibliographic Details
Published in:Entrepreneurship theory and practice 2011-11, Vol.35 (6), p.1179-1197
Main Authors: Patel, Pankaj C., Fiet, James O.
Format: Article
Language:English
Subjects:
Analysis
Business
Business studies
Entrepreneurs
Entrepreneurship
Family
Family corporations
Family firms
Family owned businesses
Family-owned business enterprises
Human capital
Innovations
Knowledge
Knowledge management
Management
Managers
Organization theory
Small business
Statistical analysis
Stocks
Studies
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Summary:This study examines differences in knowledge structures and combinative capabilities that provide family firms with distinct advantages over nonfamily firms in identifying opportunities. Drawing on constrained, systematic search, we explore how noneconomic goals and family relations enhance searching for opportunities. Unique human capital conditions create specific knowledge and economies of scope in knowledge combination. Differences in knowledge stocks, knowledge combination, and the long–term orientation of family firm managers explain differences in finding opportunities between family and nonfamily firms. Furthermore, we propose that family firms are more likely to improve their search routines over time. Fewer endgame scenarios in family firms allow the refinement of search routines.
ISSN:1042-2587
1540-6520
DOI:10.1111/j.1540-6520.2011.00497.x