Innovation and growth in family-owned Mexican SMEs

Maldonado-Guzm�n, Gonzalo; Garza-Reyes, Jose Arturo; Pinz�n-Castro, Sandra Yesenia; Mej�a-Trejo, Juan; Kumar, Vikas; Nadeem, Simon Peter

Abstract

This paper studies the relationship between innovation and the level of growth in family-owned small and medium-sized enterprises (SMEs), this is done within the context of Mexico. The conceptual framework of analysis is based on the hypothesis that innovation in products, processes and management systems contribute to the achievement of growth in family-owned SMEs. To test this hypothesis, a model of structural equation of second order was developed with data collected from 206 family-owned SMEs located in the state of Aguascalientes, Mexico. The empirical evidence provided by the analysis
supports the hypothesis, showing that family-owned SMEs that increase their innovation activities will also
significantly increase their opportunities for growth. This finding can be used to inform the business growth strategies formulated by the owners, or managers, of family-owned SEMs. These also indicate
policy-makers that by designing effective policies and providing incentives to support innovation in
family-owned SMEs, the government would not only contribute to the growth of these organisations but also to the growth of their regions and countries. Despite the importance of innovation and family-owned SMEs,evidence suggests that studies focused on investigating innovation in this type of organisations are very limited. This paper fills this gap by providing a refined understanding of the relationship between innovation and growth in family-owned SMEs.

• Journal Article Type: Article
• Acceptance Date: Mar 6, 2018
• Publication Date: Jan 1, 2018
• Deposit Date: Mar 6, 2018
• Publicly Available Date: Mar 27, 2018
• Journal: Proceedings of the International Conference on Industrial Engineering and Operations Management Bandung, Indonesia, March 6-8, 2018
• Print ISSN: 2169-8767
• Peer Reviewed: Peer Reviewed
• Volume: ID46
• Pages: 3458-3468
• Keywords: family-owned business, growth, innovation, Mexico, SMEs
• Public URL: https://uwe-repository.worktribe.com/output/874988
• Publisher URL: http://ieomsociety.org/ieom2018/papers/46.pdf
• Contract Date: Mar 6, 2018