In many family businesses, family members see the company as a mirror of themselves. This self-identification, known as family firm narcissism, has an impact on the company. A new study shows that a high degree of family self-identification is associated with a higher strategic innovation orientation but a lower digital innovation output. This is also influenced by the industry's IT expenditure. In industries with higher external pressure due to high IT expenditure, there is a stronger positive correlation between family self-identification and strategic innovation orientation and a stronger negative correlation with the realized digital innovation output, measured by the proportion of digital patents compared to the total number of patents.

An awareness of these trends helps to use family self-identification in a targeted manner and to make technology-friendly decisions. In particular, the study suggests that family businesses should focus more on objective decision-making criteria in the research and development department in order to achieve the best possible innovation output and seize technological opportunities. An open dialog about the opportunities and risks of family self-identification in family businesses can also improve relationships with stakeholders and strengthen the company's external image. Overall, narcissism in family businesses can be a driver of innovation if family businesses recognize the challenges and master them skilfully.

From a research perspective, the study provides new insights into family businesses and digital innovation. In addition, the article presents a new method for measuring family firm narcissism. This measurement includes indicators such as "family power" and "family commitment".

The study "Family Firm Narcissism: Conceptualization, Measurement, and Relationship to Innovation" by Prof. Dr. David Bendig, Dr. Lucas Kleine-Stegemann, Dr. Florian Bartels and Jun.-Prof. Dr. Philipp Schäpers was published in the International Journal of Innovation Management.

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The full text of the study is available here