Results from hypothesis testing
Hypothesis 1 states that firm performance is positively related to innovation in family
firms. The hypothesis is supported for the family sample and also supported in the
non-family sample. The family firm's R2 explains 44% of the variance and is significant
at the 1% level. The non-family sample indicates that the R2 explains 22% of the variance
and is still significant at the 1% level. These results suggest that evidence exists
on the importance of innovation in both family and non-family firms. However, the results are stronger for family firms. Therefore, we conclude that hypothesis 1 is partially
supported.
Hypothesis 2 states that firm performance is positively related to knowledge and
innovation as compared to non-family firms. The hypothesis is supported. The family
sample findings are significant at the 1% level for the independent variables knowledge
(β = 0.24, t = 4.02) and innovation (β = 0.44, t = 7.28) with 44% of the variance
explained. However, the non-family sample indicates no significance for the knowledge
variable (β = 0.11, t = 0.88). These results indicate that there is evidence for support for
innovation and knowledge in family firms. Therefore, hypothesis 2 is supported.
Results from hypothesis testingHypothesis 1 states that firm performance is positively related to innovation in familyfirms. The hypothesis is supported for the family sample and also supported in thenon-family sample. The family firm's R2 explains 44% of the variance and is significantat the 1% level. The non-family sample indicates that the R2 explains 22% of the varianceand is still significant at the 1% level. These results suggest that evidence existson the importance of innovation in both family and non-family firms. However, the results are stronger for family firms. Therefore, we conclude that hypothesis 1 is partiallysupported.Hypothesis 2 states that firm performance is positively related to knowledge andinnovation as compared to non-family firms. The hypothesis is supported. The familysample findings are significant at the 1% level for the independent variables knowledge(β = 0.24, t = 4.02) and innovation (β = 0.44, t = 7.28) with 44% of the varianceexplained. However, the non-family sample indicates no significance for the knowledgevariable (β = 0.11, t = 0.88). These results indicate that there is evidence for support forinnovation and knowledge in family firms. Therefore, hypothesis 2 is supported.
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