Innovation Ambidexterity in Family Businesses

Abstract

Family businesses must protect their core activities while exploring new ones, a balance known as ambidexterity. Using a survey of 214 firms across three regions, we examine how ownership structure, generational involvement and decision routines relate to the balance between improving existing products and launching new ones. Firms with a next-generation member in a leading role explored more, while firms with concentrated founder control exploited more. Regular, structured reviews of the project portfolio helped firms keep both activities alive without overloading staff. The results show that ambidexterity in family firms is shaped less by size or sector than by who decides and how often priorities are revisited. We discuss practical steps for families that wish to renew their business without weakening what already works, including how to involve younger family members early without unsettling long-serving managers.