LAUSR

ABSTRACT Innovation in family firms has attracted considerable interest from scholars and practitioners in recent years. However, further theoretical and empirical research is needed to illuminate the intricate relationship between family involvement and innovation. This article studies the effect of different types of family involvement on the management of collaborative innovation. Based on empirical evidence from two leading Italian design-intensive firms in the furniture industry (B&B Italia and Cassina), this study illuminates how family involvement in control and management influences the way design-intensive firms collaborate with external designers to innovate their products. We use two indicators, design renewal and design identity, to capture differences in collaboration approaches through which design-intensive family firms involve external designers. Thus, our findings contribute to understanding how collaborative innovation is managed in family firms. This article also provides family firm owners and managers with insights on the forces that influence the collaborative innovation processes in design-intensive firms.