The Contact-Hitting R&D Strategy of Family Firms in the Japanese Pharmaceutical Industry

Shigeru Asaba, Tetsuo Wada

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This article addresses the following question: How do family firms investing less in research and development (R&D) than nonfamily firms compete in R&D intensive industries? Using Japanese pharmaceutical industry data, we found that family firms produce more patents per R&D than nonfamily firms but are not biased toward low-value innovations. Further analyses of the distribution over innovation value suggested that family firms adopt a “contact-hitting R&D strategy,” avoiding radical innovations and pursuing incremental innovations compatible with their signature moves: innovation through tradition and narrow and internal search and resulting in may low-value innovations and a few mid or high-value innovations.

Original languageEnglish
Pages (from-to)277-295
Number of pages19
JournalFamily Business Review
Volume32
Issue number3
DOIs
Publication statusPublished - 2019 Sep 1

Keywords

  • contact-hitting R&D strategy
  • frequency distribution over innovation value
  • innovation productivity
  • signature moves

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

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