An analysis of the effect of family governance on the relationships among risk aversion, innovation and performance is the purpose of this study. Beyond the level of risk and innovation, we are interested in analysing the relationship between them and their influence on performance in family firms. Traditionally, risk-seeking has been associated with innovation and performance. Our results confirm both components to be independent and, furthermore, show relationships with opposite signs as expected in the literature. In a sample of 500 firms, the results confirm an idiosyncratic behaviour in family firms; innovation contributes to performance to a higher extent in family firms, and at the same time, risk aversion is positively associated with performance only in non-family firms.

The influence of the family on human resource (HR) management structures creates important idiosyncrasies with potential implications in terms of firm performance. Based on the agency and socioemotional wealth perspectives, this paper examines the formalization and effectiveness of three basic HR practices – selection, training and compensation – in different contexts of family and non-family firms. Using a sample of 500 Spanish companies, the results show that a higher degree of HR formalization has a positive influence on firm performance, confirming the negative moderating influence of family involvement on the relationship between the formalization of training practices and the firm performance. In addition, the findings indicate that the mediating role of selection practices in the relationship between training and firm performance is smaller in family than in non-family firms.

Purpose: The purpose of this article is to measure knowledge management (KM) implementation and determine KM strategy by assigning KM instruments into KM orientations.Design/methodology/approach: Information is collected from ten SMEs in Spain and ten in Austria taking part in a KM audit project.Findings: Results show that instruments can be used to diagnose KM strategy. Besides, some firm's characteristics as industry, national culture, size and age act as contingent factors. Personalisation strategy is predominant probably due to be more feasible in first KM stages.Research limitations/implications: Besides the increase of cases, business strategy could be introduced to explore relationships with KM instruments and strategy.Practical implications: This study helps management to auto‐diagnosis its KM implementation and strategyOriginality/value: Instead of sophisticated measures, KM strategy is revealed considering knowledge instruments use.