Fostering organisational innovation in small retailers: Unleashing the power of family support, competencies, wellbeing, and customer capital

Abstract

Objective: The objective of this article is to investigate the effect of family support (FS) on organisational innovation (OIn), and the intermediary roles of owner-manager competencies (OMC), owner-manager wellbeing (OMW), and customer capital (CC).

Research Design & Methods: Based on a resource-based view (RBV), dynamic capabilities (DC), and four market zones, we selected for the study a sample of 723 small retailers in Kumasi, Ghana. Moreover, we adopted a structured interview schedule to collect the data from the respondents. We used partial least squares (PLS) and structural equation modelling (SEM) to test seven hypotheses.

Findings: Family support is an important factor that influences OIn and OMC and FS indirectly affects OIn through OMC. The nexus between FS and OIn is also enhanced by OMW and at the same time CC weakens this link. OMC, OMW, and CC also directly influence OIn.

Implications & Recommendations: To enhance OIn, policymakers should continue to scout for both internal and external resources. 

Contribution & Value Added: The contribution of this research is that the results enhance our understanding of how small retailers combine both external and internal resources as proposed by RBV and DC to increase their business innovation.

Keywords

small retailers, family support, owner-manager competencies, organizational innovation, owner-manager’s wellbeing

Author Biography

Aborampah Amoah-Mensah

PhD in Tourism, Law and Business Programme (2011, University of Girona, Spain); Senior Lecturer at the University of Cape Coast, Cape Coast (Ghana). His research interests include small and medium-sized enterprises (SMEs), innovation, and technology.

References

1. Adam, A.M. (2021). A study on sample size determination in survey research’. New Ideas Concerning Science and Technology 4(Feb), 125-134. https://doi.org/10.9734/bpi/nicst/v4/2125E
2. Alauddin, M., & Nghiem, S.H. (2010). Do instructional attributes pose multicollinearity problems? An empiri-cal exploration’. Economic Analysis and Policy, 40(3), 351-361. https://doi.org/10.1016/S0313-5926(10)50034-1
3. Anderson, R., & Reeb, D. (2003). ‘Founding-family ownership and firm performance: evidence from the S&P 500’. Journal of Finance, 58(3), 1301-1328. https://doi.org/10.1111/1540-6261.00567
4. Apuke, O.D. (2017). Quantitative research methods: A synopsis approach’. Kuwait Chapter of Arabian Journal of Business and Management Review, 33(5471), 1-8. https://doi.org/10.12816/0040336
5. Alarcón, D., & Sánchez, J.A. (2015). Assessing convergent and discriminant validity in the ADHD-R IV rating scale. Spanish STATA Meeting, October 22, 2015, University of Pablo de Olavide, Seville, Spain.
6. Arregle, J.L., Hitt, M.A., Sirmon, D.G., & Very, P. (2007). The development of organizational social capital: attributes of family firms’. Journal of Management Studies 44(1), 73-95. https://doi.org/10.1111/j.1467-6486.2007.00665.x
7. Asthana, A. (2020). Multicollinearity [PowerPoint slides] Department of Statistics. University of Lucknow, Lucknow. Retrieved from https://www.lkouniv.ac.in/site/writereaddata/siteContent/202003271457478667akash_Multicolliearity.pdf on January 3, 2022.
8. Astrachan, J.H., Klein, S.B., & Smyrnios, K.K. (2002). The F-PEC scale of family influence: A proposal for solving the family business definition problem. Family Business Review, XV(1), 45-58. http://doi.org/10.1111/j.1741-6248.2002.00045.x
9. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. http://doi.org/10.1177/014920639101700108
10. Bernard, H.R. (2002). Research Methods in Anthropology (3rd ed.). Walnut Creek: Altamira Press.
11. Boyatzis, R.E. (1982). The Competent Manager: A Model for Effective Performance. NewYork: John Villey & Sons.
12. Bullinger, H.J., Auernhammer, K., & Gomeringer, A. (2004). Managing innovation networks in the knowledge driven economy’. International Journal of Production Research, 42(17), 3337-3353. https://doi.org/10.1080/00207540410001695970
13. Carnes, C.M., & Ireland, R.D. (2013). Familiness and innovation: Resource bundling as the missing link. En-trepreneurship Theory and Practice, 37(6), 1399-1419. https://doi.org/10.1111/etap.12073
14. Cegarra-Navarro, J.G., & Sánchez-Polo, M.T. (2008). Linking the individual forgetting context with customer capital from a s’ller’s perspective. Journal of the Operational Research Society, 59(12), 1614-1623, https://doi.org/10.1057/palgrave.jors.2602491
15. Çera, G. Meço, M., Çera, E., & Maloku, S. (2019). The effect of institutional constraints and business network on trust in government: an institutional perspective. Administratie si Management Public, 33, 6-19. https://doi.org/10.24818/amp/2019.33-01
16. Chen, J., Zhu, Z., & Xie, H.Y. (2004). Measuring intellectual capital: a new model and empirical study. Journal of Intellectual Capital, 5(1), 195-212. https://doi.org/10.1108/14691930410513003
17. Chia, Y.M., & Chu, M.J. (2016). Moderating effects of presenteeism on the stress-happiness rela-tionship of hotel employees: A note. International Journal of Hospitality Management, 55, 52-56. https://doi.org/10.1016/j.ijhm.2016.02.005
18. Chirico, F., Ireland, R.D., Pittino, D., & Sanchez-Famoso, V. (2022). Radical innovation in (multi) family owned firms. Journal of Business Venturing, 37(3), 106194. https://doi.org/10.1016/j.jbusvent.2022.106194
19. Classen, N., Carree, M., Van Gils, A., & Peters, B. (2014). Innovation in family and non-family SMEs: an ex-ploratory analysis. Small Business Economics, 42, 595-609. https://doi.org/10.1007/s11187-013-9490-z
20. Cochran, W.G. (1977). Sampling techniques (3rd ed.). John Wiley & Sons.
21. Coggburn, J.D., Battaglio Jr., R.P., & Bradbury, M.D. (2014). Employee job satisfaction and organizational performance: The role of conflict management. International Journal of Organization Theory and Behav-ior, 17(4), 500-532. https://doi.org 10.1108/IJOTB-17-04-2014-B005
22. Conant, J.S., Mokwa, M.P., & Varadarajan, P.R. (1990). Strategic types distinctive marketing competencies and organizational performance: A Multiple measures-based study. Strategic Management Journal, 11(July-August), 365-383. https://doi.org/10.1002/smj.4250110504
23. Damanpour F. (1988). Innovation type, radicalness and the adoption process’. Communication Research, 15, 545-67. https://doi.org/10.1177/009365088015005003
24. Davis, T. (2019). What is well-being? Definition, types, and well-being skills. Retrieved from https://www.psychologytoday.com/intl/blog/click-here-happiness/201901/what-is-wellbeing-definition-types-and-well-being-skills on January 1, 2022.
25. De Bruyckere, S., Verplancke, F., Everaert, P., Sarens, G., & Coppens, C. (2020). The importance of mutual understanding between external accountants and owner-managers of SMEs. Australian Accounting Re-view, 30(1), 4-21. https://doi.org/10.1111/auar.12251
26. De Massis, A., Frattini, F., Pizzurno, E., & Cassia, L. (2013). Product Innovation in family vs non-family firms: An exploratory analysis. Journal of Small Business Management, 51(1), 1-39. https://doi.org/10.1111/jsbm.12068
27. Duffy, J. (2000). Measuring customer capital. Strategy Leader, 28(5), 10-14. https://doi.org/10.1108/10878570010379392
28. Edwards-Schacher, M. (2018). The nature and variety of innovation. International Journal of Innovation Stud-ies, 2(2), 65-79. https://doi.org/10.1016/j.ijis.2018.08.004
29. Elias, R., Leonard, W., & Mwakujonga, J. (2018). Determinants of owner-manager competencies for small business operations: Evidence from a small restaurant business in Tanzania. Asian Business Research Journal, 3, 41-47. https://doi.org/10.20448/journal.518.2018.31.41.47
30. El Shoubaki, A., Laguir, I., Stekelorum, R., & Hnilica, J. (2022). CEO satisfaction and SME innovation: unveiling the role of family involvement. Applied Economics, 54(53), 6160-6178. https://doi.org/10.1080/00036846.2022.2059437
31. Etikan, I., & Bala, K. (2017). Sampling and Sampling methods’. Biometrics & Biostatistics International Journal, 5(6), 1-3. https://doi.org/10.15406/bbij.2017.05.00149
32. Fisher, C.D. (2010). Happiness at work. International Journal of Management Reviews, 12(4), 384-412. https://doi.org/10.1111/j.1468-2370.2009.00270.x
33. Finkelstein, S., & Hambrick, D. (1996). Strategic Leadership: Top Executives and Their Effects on Organiza-tions. St Paul: West Publishing Company.
34. Gómez, R.S., Jose Pérez, J., Martín, M.D.M.L., & García, C.G. (2016). Collinearity diagnostic applied in ridge estimation through the variance inflation factor. Journal of Applied Statistics, 43(10), 1831-1849. https://doi.org/10.1080/02664763.2015.1120712
35. Grant, R.M. (1991). The resource-based theory of competitive advantage’. California Management Review 1(August), 114-135. https://doi.org/10.1016/B978-0-7506-7088-3.50004-8
36. Habbershon, T.G., & Williams, M. (1999). A resource-based framework for assessing the strategic advantages of family firms. Family Business Review, 12(1), 1-15. https://doi.org/10.1111/j.1741-6248.1999.00001.x
37. Hair, J.F., Black, W.C., & Babin, B.J. (2010). Multivariate Data Analysis: A Global Perspective. Pearson Educa-tion.
38. Hair, J.F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V.G. (2014). Partial Least Squares Structural Equation Modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106-121. https://doi.org/10.1108/EBR-10-2013-0128
39. Hair Jr, J.F., Howard, M.C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109(1), 101-110. https://doi.org/10.1016/j.jbusres.2019.11.069
40. Hair, J.F., Hult, G.T.M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage Publications.
41. Hair, J.F., Risher, J.J., Sarstedt, M., & Ringle, C.M. (2018). When to use and how to report the results of PLS-SEM’. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
42. Hair, J.F., Hult, G.T.M., Ringle, C.M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equa-tion Modeling PLS-SEM. Thousand Oaks: Sage.
43. Hamel G. (2009). Management innovation. Leadership Excellence, 26(5), 72-84.
44. Henseler, J., Ringle, C.M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in vari-ance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135. https://doi.org/10.1007/s11747-014-0403-8
45. Heyden, M.L.M., Sidhu, J.S., & Volberda, H.W. (2015). The conjoint iInfluence of top and middle management characteristics on management innovation. Journal of Management, 44(4), 1-25. https://doi.org/10.1177/0149206315614373
46. ILO (2015). Employment relationships in retail commerce and their impact on decent work and competitive-ness. Issues paper for discussion at the Global Dialogue Forum on Employment Relationships in Retail Commerce: Their Impact on Decent Work and Competitiveness ILO Office, Sectoral Policies Department (Geneva, 22-23 April).
47. ILO (2019). Small Matters: Global evidence on the contribution to employment by the self-employed, micro-enterprises and SMEs (Report 1999-2019).
48. Imaginario, S., Vieira, L.S., & Jesus, S.N. (2013). Subjective well-being and social integration of college stu-dents. Journal of Spatial and Organizational Dynamics, 1(3), 215-223.
49. Jahanshahi, S.A., Nawaser, K., & Brem, A. (2019). The Effects of Customer Capital on Customer Response Speed and Innovativeness: The mediating role of marketing capability. International Journal of Innova-tion Management, 23(6), 1-25. https://doi.org/10.1142/S1363919619500580
50. Jokinen, T. (2005). Global leadership competencies: A review and discussion. Journal of European Industrial Training, 29(3), 199-216. https://doi.org/10.1108/03090590510591085
51. Judge, T.A., Thoresen, C.J., Bono, J.E., & Patton, G.K. (2001). The job satisfaction-job perfor-mance relationship: A qualitative and quantitative review. Psychological Bulletin, 127(3), 376-407. https://doi.org/10.1037/0033-2909.127.3.376
52. Jahanshahi, S.A., Nawaser, K., & Brem, A. (2019). The effects of customer capital on customer response speed and innovativeness: The mediating role of marketing capability. International Journal of Innovation Management, 23(6), 1-25. https://doi.org/10.1142/S1363919619500580
53. Jalili, A., Jaafar, M., & Ramayah, T. (2014). Entrepreneurial orientation and performance: the interaction effect of customer capital. World Journal of Entrepreneurship, Management and Sustainable Develop-ment, 101, 48-68. https://doi.org/10.1108/WJEMSD-05-2013-0030
54. Kerlinger, F.N. (1986). Foundations of behavioral research (3rd ed.). Holt, Rinehart and Winston.
55. King, L.A., Mattimore, L.K., King, D.W., & Adams, G.A. (1995). Family support inventory for workers: a new measure of perceived social support from family members. Journal of Organizational Behavior, 16(3), 235-258. https://doi.org/10.1002/job.4030160306
56. Kline, R.B. (2011). Principles and practice of structural equation modeling: Guilford Press.
57. Krejcie, R.V., & Morgan, D.W. (1970). Determining sample size for research activities. Educational and Psycho-logical Measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308
58. Krueger, N.F., Reilly, M.D., & Carsrud, A. (2000). Competing models of entrepreneurial Intention. Journal of Business Venturing, 15(5-6), 411-432. https://doi.org/10.1016/S0883-9026(98)00033-0
59. Lewis, J.L., & Sheppard, S.R.J. (2006). Culture and communication: can landscape Visualization improve for-est management consultation with indigenous communities?. Landscape and Urban Planning, 77, 291-313. http://doi.org/10.1016/j.landurbplan.2005.04.004
60. Liang, Q., Li, X., Yang, X., Lin, D., & Zheng, Z. (2013). How does family involvement affect innovation in China? Family involvement in top management team: Impact on relationships between internal social capital and innovation’. Asia Pacific Journal of Management, 30, 677-695. https://doi.org/10.1007/s10490-012-9320-x
61. Liridon, V., & Mimoza, M. (2017). The Impact of managerial competencies on business performance: SME’s in Kosovo’. Vadyba Journal of Management, 1(30), 59-65.
62. Lüthje C., & Frank, N. (2003). The making of an entrepreneur, testing a model of entrepreneurial intent among engineering students at MIT. R&D Management, 33(2), 135-147. https://doi.org/10.1111/1467-9310.00288
63. Manzaneque, M., Diéguez-Soto, J., & Garrido-Moreno, A. (2018). Technological innovation inputs, outputs and family management: Evidence from Spanish manufacturing firms’. Innovation: Organization & Man-agement, 20(4), 299-325. https://doi.org/10.1080/14479338.2018.1444491
64. Martina, K., Hana, U., & Jirl, F. (2012). Identification of managerial competencies in knowledge-based organi-zation. Journal of Competiveness, 4(1), 129-142. https://doi.org/10.7441/joc.2012.01.10
65. Matzler, K., Veider, V., Hautz, J., & Stadler, C. (2015). The impact of family ownership, management, and governance on innovation. Journal of Product Innovation Management, 32(3), 19-333. https://doi.org/10.1111/jpim.12202
66. Miah, M.M. (2018). The impact of employee job satisfaction toward organizational performance: A study of private sector employees in Kuching, East Malaysia. International Journal of Scientific and Research Publi-cations, 8(12), 270-278. https://doi.org/10.29322/IJSRP.8.12.2018.p8437
67. Miller, D., & Le Breton-Miller, I. (2006). Family governance and firm performance: agency, stewardship, and capabilities. Family Business Review, 19(1), 73-87.https://doi.org/10.1111/j.1741-6248.2006.0006
68. Mitchelmore, S., & Rowley, J. (2010). Entrepreneurial competencies: A literature review and de-velopment agenda. International Journal of Entrepreneurial Behavior & Research, 16(2), 92-111. https://doi.org/10.1108/13552551011026995
69. Mohajan, H.K. (2020). Quantitative research: A successful investigation in natural and social Sciences’. Jour-nal of Economic Development, Environment and People, 9(4), 50-79. https://doi.org/10.26458/jedep.v9i4.679
70. Mohsin, A.M.B.A., Halim, H.A., & Farhana, M. (2017). Assessing the Role of Entrepreneurial Competencies on Innovation Performance: A Partial Least Squares (PLS) Approach. The Journal of Business Inquiry, 16(1), 88-101.
71. Moran, P. (2005). Structural vs. relational embeddedness: Social capital and managerial performance. Stra-tegic Management Journal, 26(12), 1129-1151. https://doi.org/10.1002/smj.486
72. Mungai, E., & Velamuri, S.R. (2011). Parental entrepreneurial role model influence on male offspring: Is it always positive and when does it occur?’. Entrepreneurship Theory and Practice, 35(2), 337-357. https://doi.org/10.1111/j.1540-6520.2009.00363.x
73. Muterera, J., Hemsworth, D., Baregheh, A., & Garcia-Rivera, B.B. (2018). ‘The leader-follower dyad: The link between leader and follower perceptions of transformation leadership and its impact on job satisfac-tion and organizational performance’. International Public Management Journal 21(1), 131-162. https://doi.org/10.1080/10967494.2015.1106993
74. Niittykangas, H., & Tervo, H. (2005). Spatial variations in intergenerational transmission of self-employment’. Regional Studies, 39(3), 319-332. https://doi.org/10.1080/00343400500087166
75. Nunnally, J. (1978). An overview of psychological measurement’. In B.B. Wolman (Ed.), Clinical Diagnosis of Mental Disorders: A Handbook (pp. 97-146). Springer US.
76. OECD/Eurostat (2019). Oslo Manual 2018: Guidelines for collecting, reporting and using data on innovation (4th ed.): The measurement of scientific, technological and innovation activities: OECD Publishing, Par-is/Eurostat, Luxembourg. https://doi.org/10.1787/9789264304604-en
77. Peterman, N.E., & Kennedy, J. (2003). Enterprise education: Influencing students’ perceptions of entrepre-neurship. Entrepreneurship Theory and Practice, 28, 129-144. http://doi.org/10.1046/j.1540-6520.2003.00035.x
78. Pett, M.A., Lackey, N.R., & Sullivan, J.J. (2003). Making sense of factor analysis: The use of factor analysis for instrument development in health care research. Sage.
79. Pressman, S.D., Cohen S., Miller, G.E., Barkin, A., Rabin, B.S., & Treanor J.J. (2005). Loneliness, social network size, and immune response to influenza vaccination in college Freshmen. Health Psychology, 24(3), 297-306. https://doi.org/10.1037/0278-6133.24.3.297
80. Rahman, M.P., & Kavida, V. (2019). Factors determining the innovation types of Manufacturing SMEs in India. Asia-Pacific Journal of Management Research and Innovation, 14(3-4) 94-110. https://doi.org/10.1177/2319510X18817647
81. Renshaw, T.L., Long, A.C.J., & Cook, C.R. (2015). Assessing adolescents’ positive psychological functioning at school: Development and validation of the Student Subjective Wellbeing Questionnaire. School Psychol-ogy Quarterly, 30(4), 534-552. https://doi.org/10.1037/spq0000088
82. Ringle, C.M., Becker, J.M., Cheah, J.H., & Sarstedt, M. (2022). PLS-SEMs most wanted guidance. International Journal of contemporary Hospitality Management. Publish Ahead of Print.
83. Ryan, R.M., & Deci, E.L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68-78. https://doi.org/10.1037/0003-066X.55.1.68
84. Rupietta, C., Meuer, J., & Backes-Gellner, U. (2021). How do apprentices moderate the influence of organiza-tional innovation on the technological innovation process?. Empirical Research Vocational Education Training, 13(1), https://doi.org/10.1186/s40461-020-00107-7
85. Sanchez-Famoso, V., Maseda, A., & Iturralde, T. (2017). Family involvement in top management team: Im-pact on relationships between internal social capital and innovation. Journal of Management & Organi-zation, 23(1), 136-162. https://doi.org/10.1017/jmo.2016.2
86. Sarafino, E.P., & Smith, T.W. (2014). Health Psychology (8th ed.). John Wiley & Sons, Inc.
87. Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
88. Selnes, F., & Sallis, J. (2003). Promoting Relationship Learning. Journal of Marketing, 67(3), 80-95.
89. Seligman, M. (2012). Flourish: A visionary new understanding of happiness and well-being. Australia: William Heinemann.
90. Stewart, T., & Ruckdeschel, C. (1998). Intellectual Capital: The New Wealth of Organizations. Performance Improvement, 37(7), 56-59. https://doi.org/10.1002/pfi.4140370713
91. Sultan, S., de Waal, A., & Goedegebuure, R. (2017). “Analyzing organizational performance of family and non-family businesses using the HPO framework”. Journal of Family Business Management, 7(3), 242-255. https://doi.org/10.1108/JFBM-07-2017-0021
92. Sun, K., Wickramasekera, R., & Tan, A. (2022). Exploring the relationship between family involvement and innovative capability in Chinese family SMEs: The role of HR redundancy. Sage Open, 12(2), 1-16. https://doi.org/10.1177/21582440221099531
93. Teece, D.J. (2007). Explicating dynamic capabilities: The nature and micro foundations of(sustainable) enter-prise performance. Strategic Management Journal, 28(13), 1319-1350.
94. Teo, T., Lee, C.B., & Chai, C.S. (2007). Understanding pre-service teachers’ computer attitudes: applying and extending the technology acceptance model’. Journal of Computer Assisted Learning, 24(2), 128-143. https://doi.org/10.1111/j.1365-2729.2007.00247.x
95. Umberson, D. (1987). Family status and health behaviors: Social control as a dimension of social Integra-tion’. Journal of Health and Social Behavior, 28, 306-319. https://doi.org/10.2307/2136848
96. Van De Voorde, K., Paauwe, J., & Van Veldhoven, M. (2012). Employee well-being and theHRM-organizational performance relationship: a review of quantitative studies. International Journal of Man-agement Reviews, 14(4), 391-407. https://doi.org/10.1111/j.1468-2370.2011.00322.x
97. Villalonga, B., & Amit, R. (2006). How do family ownership, control, and management affect firm value?’. Journal of Financial Economics, 80, 385-417. https://doi.org/10.1016/j.jfineco.2004.12.005
98. Wernerfelt, B. (1984). The resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207
99. Wills, T.A. (1991). Social support and interpersonal relationships. In M.S. Clark (Ed.), Prosocial behavior (pp. 265-289). Sage Publications.
100. Wright, T.A., Cropanzano, R., & Bonett, D.G. (2007). The moderating role of employee positive wellbeing on the relation between job satisfaction and job performance. Journal of Occupational Health Psychology, 12(2), 93-104. https://doi.org/10.1037/1076-8998.12.2.93
101. Wright, T.A. (2010). The role of psychological well-being in job performance, employee retention and cardi-ovascular health. Organizational Dynamics, 39(1), 13-23. https://doi.org/10.1037/1076-8998.12.2.93
102. Yordanova, D. (2012). Development and selection of successors in family firms: Evidence from Bulgaria. An-nual Book of Sofia University ‘St. Kliment Ohridski, 10(1), 91-103.