- Mar 25, 2026
- Posted by:
- Category: Abstract of 8th-icnmbe
Abstract Book of the 8th International Conference on New Trends in Management, Business and Economics
Year: 2026
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Innovation Management in Small and Family-Owned Businesses
Tatyana Pashnyak, Franzelle Mathis-Pertilla
ABSTRACT:
Small and family-owned businesses play a vital role in economic development, employment generation, and community stability, yet their innovation practices remain underrepresented in management research. This study examines how strategic capabilities shape innovation practices and growth outcomes in small and family-owned firms operating under resource constraints. Using a qualitative multiple-case study design, data were collected from five family-owned businesses through semi-structured interviews with owner-managers, supported by document analysis and non-participant observations. Thematic analysis revealed that entrepreneurial orientation, relational capital, and adaptive decision-making serve as key enablers of innovation, particularly in the form of incremental process and service improvements. At the same time, financial limitations, informal governance structures, and family-driven risk aversion constrained the pursuit of radical innovation initiatives. Descriptive performance indicators indicated that firms emphasizing incremental innovation and localized market knowledge experienced improvements in operational efficiency, customer retention, and cost control over time. The findings highlight the dual role of family involvement as both a constraint and a strategic asset, shaping innovation decisions through long-term orientation and risk sensitivity. This study contributes empirical insight to innovation management and family business literature by clarifying how innovation is managed in resource-constrained contexts and offers practical implications for business owners, educators, and policymakers seeking to support sustainable growth in small and family-owned enterprises.
Keywords: entrepreneurship; growth outcomes; strategic capabilities; sustainability; relational capital