The paper constructs a theoretical framework suggesting a moderating impact of product market competition in determining the relationship between family ownership/control and innovation. We argue that the elimination of ‘career concerns’ of CEOs in firms with greater family share may explain the mechanism followed to encourage R&D investments. Empirical testing of the hypotheses is performed using data from the Indian manufacturing industry for the period 2001–2018. The findings suggest that the domestic product market competition complements the relationship between family ownership/control and R&D investments. This indicates that family firms tend to invest more in R&D as domestic product competition increases. The data suggest that the effect of family involvement on innovation is due to the reduction of managerial career concerns, as we find that managerial turnover (conditional on poor performance) is lower if family involvement is higher. This effect is significantly stronger under higher degrees of competition.

中文翻译：

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家族参与、创新与产品市场竞争

本文构建了一个理论框架，表明产品市场竞争在确定家族所有权/控制权与创新之间的关系方面具有调节作用。我们认为，消除家族股份较多的公司首席执行官的“职业担忧”可能可以解释鼓励研发投资所遵循的机制。使用 2001-2018 年印度制造业的数据对假设进行了实证检验。研究结果表明，国内产品市场竞争补充了家族所有权/控制权与研发投资之间的关系。这表明，随着国内产品竞争的加剧，家族企业倾向于加大研发投入。数据表明，家庭参与对创新的影响是由于管理职业担忧的减少，因为我们发现，如果家庭参与度越高，管理人员流动率（以绩效不佳为条件）就越低。在竞争程度较高的情况下，这种效应明显更强。