Author(s)

GuangHui Hou

Affiliation(s)

School of Business, Guangdong University of Foreign Studies, Guangzhou 510006, Guangdong, China.

Corresponding Author

GuangHui Hou

ABSTRACT

This paper aims to construct a contextualized theoretical framework integrating institutional logic and upper echelons theory to explore how the hands-on involvement of inventor CEOs in Chinese family firms influences the balance between exploitative and exploratory innovation within the unique context of China's transitional economy. Focusing on the dynamic fusion process between market logic and familial logic in China, this study posits that such fusion forms distinctive mechanisms of "institutionalized compromise" and "strategic synergy" through practices such as intergenerational succession, governance structure evolution, and open innovation. This paper systematically develops a series of propositions elucidating (1) how hybrid governance models like "consortium + professional manager," driven by market logic, reshape the decision-making environment of inventor CEOs by introducing external capital and professional expertise, thereby moderating the impact of their involvement on innovation ambidexterity; (2) how intergenerational succession, constrained by the "socioemotional wealth" and driven by the "succession intention" inherent in familial logic, alters the participation paradigm and innovation orientation of founder-inventor CEOs through value integration and knowledge structure renewal; and (3) how the tension between the "openness" demanded by market logic and the "control" preferred by familial logic in open innovation contexts is moderated by formal governance mechanisms and intellectual property regimes. This research not only deepens the understanding of the contextualized drivers of CEO behavior but also provides a systematic theoretical explanation and managerial implications for Chinese family firms to achieve innovation leaps within institutional fusion.

KEYWORDS

Inventor CEO; Hands-on involvement; Exploitative innovation; Exploratory innovation; Institutional fusion

CITE THIS PAPER

GuangHui Hou. The fusion of market and familial logics: a theoretical construction of inventor CEO participation and innovation strategies in Chinese family businesses. Innovation and Technology Studies. 2025, 2(2): 30-37. DOI: DOI: https://doi.org/10.61784/its3019.

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