University of Leicester
Browse
R D Management - 2023 - Hu - When is R D beneficial for family firms The concurrent roles of CSR and economic conditions.pdf (251.89 kB)

When is R&D Beneficial for Family Firms? The Concurrent Roles of CSR and Economic Conditions

Download (251.89 kB)
Version 2 2023-11-22, 11:03
Version 1 2023-02-17, 10:33
journal contribution
posted on 2023-11-22, 11:03 authored by Qilin 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 non-recessionary 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 inward-looking 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

Author affiliation

School of Business, University of Leicester

Version

  • VoR (Version of Record)

Published in

R and D Management

Volume

53

Issue

3

Pagination

524-542

Publisher

Wiley

issn

0033-6807

Copyright date

2023

Available date

2023-11-22

Language

en

Usage metrics

    University of Leicester Publications

    Categories

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC