The Synergy of Family Values and Innovation in Enhancing Family Business Performance: A Literature Review

Abstract

Family businesses represent a crucial component of the global economy, yet many struggle to sustain performance across generations. Previous studies have largely examined family values and innovation separately, but few have explored how these two elements interact to enhance family business performance, particularly in developing economies such as Indonesia, where cultural values strongly influence entrepreneurship. This study employs a qualitative literature review by synthesizing research published between 2015 and 2025 from databases including Scopus, ScienceDirect, and Google Scholar. A total of 120 papers were initially reviewed, from which 30 peer-reviewed journal articles were selected based on relevance, methodological rigor, and academic credibility. The findings indicate that family values such as trust, commitment, and responsibility form the emotional and ethical foundation of long-term sustainability, while innovation serves as a strategic tool to adapt family businesses to modern challenges. The integration of these two elements generates a unique competitive advantage that supports intergenerational continuity and sustainable business growth.