Value creation and value appropriation in innovation process in publicly-traded family firms

 The purpose of this journal is to examine the differences between publicly traded family firms in regards to value creation and value appropriation in the innovation process by drawing upon the knowledge-based view and family business literature with a focus on socio emotional wealth perspective.

First, the authors found that family ownership with second or later generation's majority shows lower levels of value creation capabilities compared to non-family firms, whereas there is no difference between those of the firms with family ownership with a first generation's majority and non-family firms. 

The authors also found that family owned firms with a first generation's majority have higher value appropriation abilities compared to non-family firms, while there is no significant difference in value appropriation between the later generation family firms and non-family firms.

This study helped scholars, family business members, and investors better understand family involvement, and how it impacts firm performance through value creation and value appropriation.

The paper contributes to the family business, innovation, and KBV literature in several ways. While previous family business studies drawing upon resource-based view and KBV often focus on the value creation in family governance, the authors investigate both value creation and value appropriation phases of innovation process.

Emily, E; Fang, H; Welsh, D. (2015). Value creation and value appropriation in innovation process in publicly-traded family firms. Management Decision, London Vol. 53, Its. 9.