One for all, all for one: A mutual gains perspective on HRM and innovation management practices in family firms

• Published in: Journal of family business strategy Vol. 13; no. 2; p. 100394
• Main Authors: Rondi, Emanuela, Überbacher, Ruth, von Schlenk-Barnsdorf, Leopold, De Massis, Alfredo, Hülsbeck, Marcel
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.06.2022
• Subjects: Case study; Human resource management; Innovation; Long-term orientation; Mutual gains; Case study; Mutual gains; Innovation; Long-term orientation; Human resource management
• ISSN: 1877-8585; 1877-8593
• DOI: 10.1016/j.jfbs.2020.100394

•Mutual gains between the organization and employees in a single case of Schlenk, a German FF.•In-depth analysis of primary data combined with historical archival data (1879–2019).•Identification of distinct FF characteristics of credibility, solidarity, and loyalty.•Emergence of a virtuous cycle of reciprocal reinforcement between HRM and innovation management practices.•Transgenerational perspective on HRM systems. The aspiration to thrive in the long run is among the most distinctive traits of family firms. On the one hand, a long-term view can spur the family firm to plan and secure its human resources (HR), thereby attracting local employees seeking stability, and retaining them for decades. On the other hand, low employee turnover can be a barrier to innovation, which is needed to survive and compete in the long run. Nevertheless, numerous family firms are renowned for being simultaneously excellent employers and outstanding innovators. Therefore, how can a long-term oriented family firm nurture its employees while pursuing innovation? We conducted a longitudinal case study on Carl Schlenk AG, a fourth-generation family firm consistently awarded for both its HR management (HRM) and innovation initiatives. Our investigation led us to identify distinct family firm characteristics of credibility, solidarity, and loyalty which engender a unique virtuous cycle of reciprocal reinforcement between sophisticated HRM and innovation practices, ultimately fostering mutual gains for the family firm and its employees. We offer contributions to HRM and innovation management research in the context of family firms and beyond.