The influence of non-family members in top management teams on research and development investment: Evidence from Chinese family firms

PLoS One. 2021 Oct 8;16(10):e0258200. doi: 10.1371/journal.pone.0258200. eCollection 2021.

Abstract

The diversified management ability of the non-family members in the top management teams (TMTs) can significantly increase the research and development (R&D) investment of the family firms. However, existing studies focus on family characteristics. To bridge the gap, this study explored the R&D investment propensity for family firms from the perspective of non-family members' participation in TMTs. Based on the upper echelons and the socioemotional wealth theory, this paper incorporated the non-economic goals that influence strategic decisions on family firms into the analytical framework. According to the questionnaire data of Chinese private enterprises, the Tobit regression model was used to analyze the influence of family members on R&D investment decisions under non-economic goal orientations. The results indicated that the preference for control and influence among family members weakens the positive effect of non-family managers on R&D investment, while the preferences for status perception and social responsibility strengthen the positive effect.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • China
  • Family
  • Humans
  • Investments / economics*
  • Investments / organization & administration*
  • Private Sector / economics*
  • Private Sector / organization & administration*
  • Regression Analysis
  • Research / economics*
  • Research / organization & administration*
  • Social Responsibility
  • Statistics as Topic

Grants and funding

Financial support from Innovative Team of Philosophy and Social Sciences in Jiangsu Higher Learning Institutions, recipient H.D., grant numbers 2017ZSTD002. http://jyt.jiangsu.gov.cn/. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.