This study examines how perceived organizational politics influence work-role innovation in family-owned small and medium-sized enterprises, with organizational climate as a mediating variable. Drawing on the socioemotional wealth perspective, we argue that these political perceptions in family firms are interpreted through relational, affective, and trust-based logics that shape employees' shared understanding of the work environment. Using survey data from 421 employees across 134 Mexican family-owned firms, we tested a mediation model linking organizational politics, organizational climate, and work-role innovation through regression-based mediation analysis and structural equation modeling. The results indicate that perceived organizational politics are positively associated with organizational climate, which in turn has a strong positive effect on work-role innovation. The direct relationship between organizational politics and innovation was not statistically significant, whereas the indirect effect through organizational climate was positive and significant, indicating a full mediation pattern. These findings challenge the dominant view of organizational politics as inherently dysfunctional by demonstrating their context-dependent effects in family firms. By identifying organizational climate as the central mechanism linking political perceptions and innovation, this study contributes to a more nuanced understanding of informal influence and innovation processes in family-owned firms.

Purpose This study aims to examine the impact of environmental, social and governance (ESG) practices on the financial performance of family-owned firms in Mexico. It investigates explicitly whether ESG integration leads to improved outcomes and how the unique governance structures of family firms moderate this relationship. Design/methodology/approach This study utilizes panel data from 128 Mexican listed companies between 2014 and 2022, employing a fixed-effects model to examine the relationship between ESG practices and financial performance, as measured by returns on equity (ROE), return on assets (ROA) and operating margin. Family ownership is analyzed as a moderating factor, and robustness checks include dynamic Generalized Method of Moments (GMM) models and winsorization to control for outliers. Findings The results show that family firms integrating ESG – particularly environmental initiatives – exhibit significantly higher ROE and operating margins than nonfamily firms. However, the effect on ROA is selective, appearing only in robustness and subsample analyses. ESG adoption within family firms offers partial performance benefits, primarily through environmental and governance practices, which align with their long-term orientation and socioemotional wealth priorities. Originality/value This paper contributes to the literature by offering empirical evidence from an emerging economy, highlighting the nuanced impact of ESG integration on family firms. It advances socioemotional wealth theory in the context of corporate governance and sustainability, offering practical insights for investors, policymakers and family business leaders.

This study examines how consumers in an emerging market perceive the globalness and localness of family business brands compared to non-family business brands, and the extent to which these perceptions align with traditional brand classifications. Drawing on a consumer-centric framework, we surveyed 400 Mexican consumers who evaluated 25 brands across seven product categories. The findings reveal significant misalignments between brand origin (family versus non-family) and perceived global versus local positioning, suggesting that consumer perceptions are shaped more by symbolic cues, storytelling, and market presence than by ownership structures. Local brands retain strong relevance, and family business brands are not consistently recognized as such unless they explicitly communicate family-related attributes. This study contributes to international branding and family business literature by highlighting the role of consumer perception in brand categorization and offering practical guidance for brand managers navigating positioning strategies in culturally dynamic markets. Implications for managing misalignment and future research directions on perception antecedents are discussed.

Purpose Research in managerial cognition has proved the influence of managerial perceptions in strategic renewal. Moreover, contingency theory argues that strategic renewal is an organisational reaction to perceived contingencies. Nevertheless, previous literature has rarely examined the interaction of these two theoretical approaches in the context of perceived gender issues. This paper explores how managers' perceptions of gender issues and stakeholder pressure, independently and in combination, influence organisations’ strategic renewal. Design/methodology/approach This study collected quantitative data through an online survey sent to managers in Sweden. The final sample consisted of 101 valid responses examined using linear regression analysis. This analysis consisted of three models. Two models examined the direct impact of perceptions of gender issues and stakeholder pressure on strategic renewal, while a third model investigated their interactive effect. Findings The regression analysis showed a positive relationship between managers’ perceptions of gender issues and strategic renewal. Moreover, stakeholder pressure experienced by managers was positively associated with strategic renewal, and the interaction between the perception of gender issues and strategic renewal did not significantly influence strategic renewal. Originality/value The results provide at least three theoretical contributions, demonstrating the importance of managerial cognition in strategic renewal through the lens of perceived gender issues. Also, the results show that the interaction of perception of gender issues and stakeholder pressure does not automatically translate into strategic renewal, highlighting more complexity than generally assumed. Finally, our findings underscore the significance of perceived gender issues, even within a context widely regarded as advanced in gender equality, such as Sweden, thereby adding value and relevance to the research.

PurposeThe type of social capital among families involved in business, or family social capital, has both positive and negative effects on family firms. This paper aims to investigate the mediating role of social relationships of family business members between socioemotional wealth (SEW) and firms' entrepreneurial orientation. Design/methodology/approachThe authors applied a survey conducted in the four main cities in Mexico. The sample consisted of 360 small and medium enterprise (SMEs). This study's research framework and hypothesis were tested using regression analysis and the structural equation modeling technique. FindingsThis study finds that not only does SEW strongly influence the entrepreneurial orientation of family firms, but this influence is also mediated by the capability of such families to develop their social capital. Research limitations/implicationsThe results show the perspective of one person in the company. Though it is the person with the highest rank and presumably the person who thoroughly knows the company, there is always a possibility of bias, which may inflate the results presented in this paper. Practical implicationsBased on this study's results, family firms should continuously improve their entrepreneurial abilities to achieve sustainable competitive advantage. In addition, their unique family-related characteristics further enhance these strategic approaches' positive effects on relational capital development. Originality/valueThis work contributes to the academic literature on entrepreneurship and social capital. As a mediator between SEW and entrepreneurial orientation, family relational capital has been under-researched. The results of this study reveal significant implications for networking management and relational capital strategies for SMEs.

Entrepreneurship is an essential engine for economic growth and innovation. During the last two decades, there has been a lot of academic interest in this kind of activity but only recently has research attention been devoted to the ethical problems encountered by entrepreneurs and intrapreneurs. In this chapter, the authors highlight the ethical issues inherent to family firms. Intrapreneurs in a family business face uniquely moral problems related to fundamental fairness, succession process, copyright and brand use, and other challenges. For example, younger generations in family firms face a tricky balancing act between their loyalty to their families and finding new ventures or spin-offs based on the current business. This theoretical work aims to present some contemporary research in entrepreneurial ethics, examines the kinds of ethical dilemmas entrepreneurs and intrapreneurs face, identifies significant research topics and methodological approaches, and discusses possible directions for future research.

Questions "Where does innovation initiate in a company?" and "How can a small and medium-sized enterprise (SME) leverage its different resources to enhance its innovation capabilities to outperform its competitors?" remain unanswered to date. Accordingly, this study examined the relationship between the firm's relational capital and fundamental strategic orientations that a firm can adopt and how these different orientations affect innovation and organizational performance. The target sample included 360 Mexican SMEs who completed a pen-and-pencil questionnaire conducted at the four main cities of this country. Structural equation modeling was performed, and results revealed a strong positive effect of relational capital over all four strategic orientations considered in this study. However, mixed findings of strategic orientations and innovation were obtained. Although market and entrepreneurial orientation positively influenced innovation, a negative relationship was found between learning orientation and innovation and a nonsignificant relationship between technology orientation and innovation. As expected, innovation positively influenced the performance of SMEs. This study offers essential academic contributions and interesting managerial insights to improve performance using relational capital through innovation and strategic orientations. Therefore, we propose relational capital as an underexploited resource and a source of innovation for SMEs.

Developing new and successful products is probably the most critical task of any company. However, developing new products is not only a very complex task but also risky, even more so for an SME. One of the main risks associated with forecasting demand is estimating sales and making decisions regarding production and marketing strategies. This study considers the Bass Model for the pre-launch forecasting of new product demand, and the diffusion of new products in Mexican SMEs. The objective of our proposed model is to represent the level of new distribution developments in a simple mathematical function that has elapsed since the introduction of new products. Therefore, this article exposes the methodology to predict the success of an innovation in SMEs. The experimental validation shows that SMEs represent a driving force in spreading and introducing innovation in the Mexican market in Mexico. The innovation parameter (p) and the imitation parameter (q) are more significant than the stores’ sales in general. This result indicates that SMEs in emerging markets represent an effective means of supporting innovation. Furthermore, a robust Bass model was developed to forecast demand with limited data for new products. We analyze the model empirically, concluding that our extension can improve the accuracy of future demand forecast and, more importantly, identify the expected potential in the diffusion of a new product.

Entrepreneurship is an essential engine for economic growth and innovation. During the last two decades, there has been a lot of academic interest in this kind of activity but only recently has research attention been devoted to the ethical problems encountered by entrepreneurs and intrapreneurs. In this chapter, the authors highlight the ethical issues inherent to family firms. Intrapreneurs in a family business face uniquely moral problems related to fundamental fairness, succession process, copyright and brand use, and other challenges. For example, younger generations in family firms face a tricky balancing act between their loyalty to their families and finding new ventures or spin-offs based on the current business. This theoretical work aims to present some contemporary research in entrepreneurial ethics, examines the kinds of ethical dilemmas entrepreneurs and intrapreneurs face, identifies significant research topics and methodological approaches, and discusses possible directions for future research.

Globally,small and medium-sized enterprises(SMEs)are engines of economic growth and job creation.After the pandemic,innovation activities have become more critical than ever as a generator of competitiveness.Therefore,we need to better understand the factors that lead to innovation in SMEs.This study aims to analyze the role of relational capital and technology orientation in innovation to appreciate its final impact on firm performance.The main results reveal a strong positive effect of relational capital on innovation,but the effect is not so strong as firm performance.We also found a strong positive effect of relational capital on technology orientation.Finally,we offer some clues in the debate on technology as a source of innovation and how relational capital and technology orientation are related to a firm's performance.The results reveal significant implications for inno-vation policies and relational capital strategies for SMEs.

Purpose The main objective of this manuscript is to describe the current situation of a sample of family business and their response to COVID-19 pandemic. This exploratory study analyzes a series of challenges faced by this type of firm in Latin America. This study puts special focus on how the pandemic is impacting transgenerational and family entrepreneurship and the sense of legacy in family businesses. Design/methodology/approach The authors performed an online survey during June–July 2020. The survey includes 20 questions to owners or executives of family businesses about how they had been facing the onslaught of the COVID-19 pandemic in their companies. The authors received 194 valid respondents from firms that have their headquarters in Mexico, Colombia, Venezuela, Peru, Chile and other Latin American countries. Findings The empirical analysis shows that family firms in Latin America have managed to survive and stay current through family entrepreneurship, protecting their heritage and relying on legacy. Out of four main competencies, “family entrepreneurship” was the most important on which business families relied to face this crisis. Research limitations/implications The authors were able to gather information from just under 300 participants. However, the authors decided to take into account only those complete responses in the survey, so the present analysis was carried out on the valid sample of 194 respondents. Practical implications The results of this study show that business families have managed to survive and stay current through family entrepreneurship, protecting their heritage and relying on legacy. Strategic leadership and intergenerational dynamics alone are not enough to face this crisis. Social implications Family firms, like other companies, have shifted their mindset over the last months from “how can we grow” to “how can we survive”. Consequently, what competencies are necessary to develop so that family businesses can cope with this and the following crises? How are Mexico and Latin America’s family-owned businesses navigating the economic disruptions resulting from COVID-19? This paper explores the role of family firms in the wake of the COVID-19 outbreak. Originality/value This study provides an overview of the coping mechanisms that some family businesses are implementing to overcome the challenges during the pandemic, putting focus on the specific context of Latin America. Family businesses represent approximately 60% of the region’s GDP, so their survival is completely relevant in terms of not only economic impact but also social development. Future research and implications are discussed.

The positive impact of social capital on a variety of outcomes is well documented. The relational aspect of social capital, however, is relatively underexplored, especially with respect to its strategic antecedents. In this paper, we contribute to the family firm and general strategy literature by studying three strategic approaches – market, entrepreneurship and learning orientation – and their impact on relational capital. In consideration of the idiosyncrasies of family firms that shape their strategic foci and potential advantages that such businesses have in leveraging strategies to competitive advantages, we investigate the differences in the strength of these effects between family and non-family businesses. The hypothesized relationships are tested using regression analysis on a sample of 360 family and non-family firms in Mexico.

Entrepreneurship is an essential engine for economic growth and innovation. During the last two decades, there has been a lot of academic interest in this kind of activity but only recently has research attention been devoted to the ethical problems encountered by entrepreneurs and intrapreneurs. In this chapter, the authors highlight the ethical issues inherent to family firms. Intrapreneurs in a family business face uniquely moral problems related to fundamental fairness, succession process, copyright and brand use, and other challenges. For example, younger generations in family firms face a tricky balancing act between their loyalty to their families and finding new ventures or spin-offs based on the current business. This theoretical work aims to present some contemporary research in entrepreneurial ethics, examines the kinds of ethical dilemmas entrepreneurs and intrapreneurs face, identifies significant research topics and methodological approaches, and discusses possible directions for future research.

This research explores how the environmental dynamism affects the relationship between familiness and a family firm’s performance in an emerging economy. To achieve this goal, we used an instrument to measure three familiness theoretical dimensions (process, human, and organizational resources). To collect data, we interviewed owners of family firms characterized as SMEs in México. Contrary to what is expected, our findings suggest that familiness, as a source of competitive advantage for family firms, may be more suitable in stable environments characterized by certainty of conditions. In other words, the effect of familiness on a family firm’s performance diminishes in highly dynamic environments.

Research on entrepreneurial orientation and its relation with family SMEs has been primarily focused on value creation, and not how this value can be generated on the succession process. At this respect, paternalism plays a crucial role in reinforcing family inertia, as Mexican firms are traditional and generally closed to changes. In this chapter, four Mexican family SMEs are analyzed to study how the entrepreneurial orientation of Mexican family firms has effects on both the entrepreneurial performance and the succession process.

This study focuses on the multiplexity of firm R&D networks, and it investigates two types of boundary-spanning networks: the bipartite network between firms and government-sponsored institutions (GSIs), and the traditional firm-firm network. We apply a social network perspective to examine the effects that these kinds of networks have on firm innovativeness, in relation to the effects of the firm's internal R&D efforts. We define the firm-GSI network as bipartite, and we investigate how the structural characteristics of this network (cohesion and centrality) affect innovativeness. We then decompose the innovational effects of firm-firm networks into two categories (intra- and inter-sector) to distinguish the effects of these collaboration networks. Furthermore, we investigate how these various external collaborative networks interact with a firm's internal R&D efforts for driving innovativeness. Our empirical study of 420 manufacturing firms in Mexico evaluates evidence from surveys and secondary data. The findings indicate that the structural properties of both firm-GSI and firm-firm networks have positive effects on innovativeness, but firm-GSI network cohesion has a stronger negative interaction with R&D in influencing firm innovativeness. Moreover, intra-sector centrality in a firm-firm network has a stronger negative interaction with R&D than inter-sector centrality does in driving firm innovativeness. We contribute to the literature by integrating insights from the perspectives of network multiplexity, social embeddedness, and resource complementarity in regard to inter-organizational behavior. Our study also provides meaningful guidelines for both managers and policy makers. The study's findings are robust to concerns of common method bias and alternative model specifications.