Extent of family influence on family firm innovative behavior: a study on small sized family firms in Istanbul

Abstract

The main objective of this study is to find out the impact of family influence and organizational structure on the innovative behaviour of small family firms. In this study, it is proposed that for innovation the components of family influence that are power, experience and culture, have to be supported by organic organizational structure. The developed scale is applied to 75 independently owned and operated small family firms in Istanbul. Our findings show that for innovation the components of family influence have to be supported by mechanistic organizational structure. The implications are crucial since the Turkish small family firms have to improve themselves in order to compete in the national and international market. Strategic thinking and innovative behaviour would increase the competitive advantage of small family firms in the national and international arena.