The Link Between Family Orientation, Strategy and Innovation in Dutch SMEs: A Longitudinal Study
This paper aimed at identifying some of the factors determining innovation performance in the SME. Based on a sample of 388 Dutch SMEs, hypotheses were tested in particular regarding the main effects of strategy, and the direct and indirect effects of family orientation on firm performance. The results clearly support a relationship between different components of strategy and strategic process and innovation performance, even on a longitudinal basis of up to four years. Variables positively predicting innovation performance include greater risk orientation, greater growth orientation, a focus strategy, and innovation differentiation strategy.