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R D Management - 2023 - Hu - When is R D beneficial for family firms The concurrent roles of CSR and economic conditions (2).pdf (246.83 kB)

When is R&D beneficial for family firms? The concurrent roles of CSR and economic conditions

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posted on 2023-05-15, 16:18 authored by Qilin HuQilin Hu, Paul Hughes, Mathew Hughes, Gary Chapman, Xinming He

How family firms innovate has captivated scholars for over a decade. However, an investigation into the benefits of research and development (R&D) for family firm value under differing economic conditions has received little attention in the family firm innovation or R&D literature. This study examines the relationship between R&D intensity and firm value among listed family firms during the economic recession period of 2007–2010 and nonrecessionary periods (referred to as normal periods) in the US between 1995 and 2013. Based on behavioral agency theory, we evaluate the moderating effects of investments in inwardlooking and outward-looking corporate social responsibility (CSR) initiatives on this relationship. We hypothesize that R&D intensity is negatively related to family firm value during a recession period, but outward-looking CSR positively moderates the relationship between the two. The opposite is hypothesized during normal periods. The results support the assertions that outward-looking CSR can ease the negative impact brought about by R&D intensity on firm value during a recession period, while inward-looking CSR investments surprisingly bear no effects. Important implications for research, family firm leaders, and R&D managers are discussed.

History

School

  • Business and Economics

Department

  • Business

Published in

R&D Management

Volume

53

Issue

3

Pages

524-542

Publisher

Wiley

Version

  • VoR (Version of Record)

Rights holder

© The Authors

Publisher statement

This is an Open Access Article. It is published by Wiley under the Creative Commons Attribution-NonCommercial 4.0 International Licence (CC BY-NC). Full details of this licence are available at: https://creativecommons.org/licenses/by-nc/4.0/

Acceptance date

2023-02-03

Publication date

2023-02-21

Copyright date

2023

ISSN

0033-6807

eISSN

1467-9310

Language

  • en

Depositor

Dr Qilin Hu. Deposit date: 6 February 2023

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