Innovation of Polish family and non-family businesses

Purpose: The study aimed to identify differences in the level of innovation of the two types of firms – family (FB) and non-family (NFB) – and understand how the expectations of the management and/or business owners vary regarding the impact of innovations on business performance. Design/methodology/approach: Research questions were formulated based on the review of the findings of the surveys that compared innovation in family and non-family firms worldwide. Then, empirical research was conducted in 334 family and non-family firms in Poland. Findings: The findings do not confirm significant differences in the level of product innovation between FB and NFB. On the other hand, they point to a higher level of innovation measured with the number of process innovations in NFB. Research shows that firms rate the degree to which the expectations of innovation effects were fulfilled relatively low in both types of firms. Research limitations/implications: The applied measurement of the level of innovation according to the number of implemented innovations does not take into account their qualitative aspect, whether they are radical or incremental. The survey (questionnaire and interview) was based solely on the number of innovations declared as implemented by the respondents. Practical implications: The survey findings should inspire managers of family and non-family firms to analyze both the expected effects of the implementation of a particular type of innovation and to assess its actual outcomes. Social implications: Studies show that FB are not less innovative when it comes to implementing new or modified products and services. This contradicts both the opinions and some research results about the conservatism of FB or their stronger orientation towards family goals at the expense of a firm’s growth. Originality/value: This comparative study on FB and NFB innovation fills a gap in the area where knowledge concerning this issue is still scarce in Poland.