Digitalization as a facilitator of open innovation: Are family firms different?

Abstract

This study analyzes the effect that a firm's level of digitalization has on its open innovation activities. Specifically, we argue that digitalization facilitates collaboration with a wider set of technology partners in the innovation process (i.e., breadth of technological collaboration). In addition, our arguments contend that certain socioemotional factors in the particular context of family firms may diminish this facilitating aspect. We test our ideas using panel data from a representative sample of Spanish manufacturing firms over the period 2007-2017. We find support for the positive association hypothesized between digitalization and the breadth of technological collaboration. Contrary to our expectations, however, the positive effect of digitalization is more pronounced among family firms. We discuss the implications for the open innovation and family business literatures.