Abstract:
Strategic posture is crucial to family-owned businesses for survival. In this study, we investigate the
effects of organizational politics and strategic posture (as measured by the Miles-Snow strategic
typology of prospectors, analyzers, defenders, and reactors) on innovation performance in familyowned
businesses. The findings of the research indicated that prospectors were positively and significantly
correlated with innovation performance. Similarly, innovation performance was found to
be positively related to strategic posture of sector. The results showed that prospector was a significant
predictor of innovation performance. According to the result of regression analysis, the interaction
term of the perceptions of organizational politics and prospectors had a negative effect on
innovation performance. However, the interaction of the perceptions of organizational politics and
analyzers had a positive effect on innovation performance. Moreover, practical implications are
discussed, and suggestions for the future research are made.