The Influence of Family Ownership and Working Capital Strategy on Corporate Risk Taking and Its Impact on Corporate Innovation
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Apr 29, 2026
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Family Ownership, Working Capital Strategy, Risk-Taking, Corporate Innovation, Liquidity
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DOAJ GOOGLE SCHOLAR DIMENSIONS PORTAL GARUDA BASE INDONESIA ONESEARCH MORAREFMain Article Content
Abstract
Purpose – This study aims to examine the effect of family ownership and working capital strategy on corporate risk-taking and its impact on corporate innovation in family firms in Indonesia.
Design/methodology/approach – This research employs a quantitative method using secondary data obtained from the financial statements of family firms in Indonesia. Data analysis is conducted to measure the relationships among family ownership, working capital strategy, corporate risk-taking, and corporate innovation.
Findings – The results are expected to show that family ownership and working capital strategy have a significant effect on the level of corporate risk-taking. Furthermore, corporate risk-taking is predicted to have a positive impact on corporate innovation. These findings indicate that family firms with good working capital management and a long-term orientation tend to be more prepared to take strategic risks to foster innovation.
Originality – This study provides an empirical contribution by integrating the roles of family ownership and working capital strategy into a single analytical framework to explain corporate risk-taking and its implications for corporate innovation. This research enriches the literature on family firm governance and financial management in the context of developing countries.
Article Details
How to Cite
Eunice, E., & Yopie, D. (2026). The Influence of Family Ownership and Working Capital Strategy on Corporate Risk Taking and Its Impact on Corporate Innovation. Contemporary Journal on Business and Accounting, 6(1), 16-35. https://doi.org/10.58792/cjba.v6i1.130
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Putri Maidina, L., Nurlaela Wati, L., & Muhammadiyah Jakarta, S. (2020). THE EFFECT OF POLITICAL CONNECTIONS, GOOD CORPORATE GOVERNANCE, AND FINANCIAL PERFORMANCE ON TAX AVOIDANCE. http://ejournal.stiemj.ac.id/index.php/akuntansi
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Shadrina, RN, & Sulistyanto, Y. (2022). ANALYSIS OF THE INFLUENCE OF CONTENT MARKETING, INFLUENCERS, AND SOCIAL MEDIA ON CONSUMER PURCHASE DECISIONS (Study of Instagram and TikTok Users in Magelang City). DIPONEGORO JOURNAL OF MANAGEMENT, 11(1). http://ejournal-s1.undip.ac.id/index.php/dbr
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Yusuf, R. , HH , & WLA (2020). The Influence of Shopee Marketing Content on.
Zein Fitri, M., Ishelmiany Ziaharah, L., Siliwangi Bandung, S., & Sunan Gunung Djati Bandung, U. (2025). ISLAMICA: Journal of Islamic Religious Sciences. https://doi.org/10.59908/islamica.v9i1.158
Anggraeni, WC, NWP, & NN (2021). 5354-18128-1-SM.
Anindia, S , & AA (2023). 24%+-+EFFECT+OF+WORKING+CAPITAL+TURNOVER,+CAPITAL+STRUCTURE,+AND+SALES+GROWTH+ON+PROFITABILITY+OF+PHARMACEUTICAL+SUBSECTOR+COMPANIES+LISTED+ON+INDONESIAN+STOCK+EXCHANGE.
Ariodutho, S., Sugiyanti, L., Larasati, A., & Wijaya, IS (2023). The Influence of Product Packaging on Perceived Quality and Value of Anisa Bakery MSME Products. 2(1), 204–214.
Bagu, A., Karamoy, H., & Gamaliel, H. (2021). ANALYSIS OF FACTORS INFLUENCING THE CHOICE OF EXTERNAL CAPITAL STRUCTURE FUNDING IN MANUFACTURING INDUSTRY COMPANIES IN INDONESIA LISTED ON THE INDONESIA STOCK EXCHANGE. In Jurnal Penelitian Akuntansi dan Auditing "GOODWILL (Vol. 12, Issue 1). www.saham.ok,
Budiman, J. (2024). Optimization and Development of Digital Company Profiles at Sukses Sejahtera MSMEs to Attract Furniture Interest. William Journal of Human and Education, 4(6), 1305–1309.
Damanik, TR , & MM (2025). Tigor+18-30.
Eka James, E., Jamie, G., & Inemesit Emmanuel, J. (2024). INFLUENCER MARKETING AND THE ADOPTION OF FINANCIAL TECHNOLOGY SERVICES BY SMEs IN CALABAR, NIGERIA.
Felix, A., Susilo, SR, Kurashige, AA, Teniwut, GV, Winata, V., Priska, D., & Usman, L. (2024). Influencer Communication Strategy: A Case Study on the Impact of TASYA YUME : Journal of Management Influencer Communication Strategy: A Case Study on the Impact of TASYA FARASYA on Consumer Purchasing Decisions. In YUME : Journal of Management (Vol. 7, Issue 2).
Hamel, C., Program, AW, Management, S., Economy, F., & Business, D. (2020). Calvin and Andi: The Influence of Entrepreneurial Orientation and Market Orientation on the Performance of SMEs in West Jakarta. In Journal of Managerial and Entrepreneurship: Vol. II (Issue 4).
Hasan, M., Dzakiyyah, A., Kumalasari, DA, Safira, N., & Aini, N. (2021). Digital Transformation of MSMEs in the Culinary Sector in Jatinegara Village, East Jakarta. Journal of Business & Entrepreneurship, 17, 2021. http://ojs.pnb.ac.id/index.php/JBK
Hutapea, Y., Fauzi, A., Dwiyanti, A., Alifah, FA, Andina, N., Murtafia, S., & Jati, D. (2024). The Role of Security Management in Preventing the Risk of Losses in Digital Finance. https://doi.org/10.38035/jkmt.v2i2
Office, KA, Kampar Regency, I., Independence, P., Leadership, G., Organization, K., Good Governance, P., Elvira, Y., Islam, U., Sultan, N., & Riau, SK (2024). Nasrullah Djamil (Vol. 2, Issue 1). https://riau.ppid.bpk.go.id
Khootimah Azzaakiyah, H., Muna Almaududi Ausat, A., Sondari Gadzali, S., & Diawati, P. (2023). ANALYSIS OF FACTORS FORMING INNOVATIVE CULTURE IN BUSINESS CONTEXT: THE KEY TO SUCCESS FOR ORGANIZATIONAL INNOVATION. Journal of Business Research, 7(1).
Lidya Primadona, IA, Mita, NP, Murti, A., Kusuma, N., Mahaputra, A., Sudiartana, IM, Kadek Bagiana, I., & Denpasar, UM (2024). The Influence of Independent Commissioners on Risk Management Disclosure: The Moderating Role of the Audit Committee. In Scientific Journal of Economics and Business (Vol. 3, Issue 2).
Listya, A., Hidayat▪yamolala, A., Siska, Z., Ma'rifah▪iseu Anggraeni▪, M., Salim, W., Dianawati▪pefriyadi▪, S., Yusuf▪tiara, R., Jannah, P., & Aziz, A. (2023). INTRODUCTION TO BUSINESS.
Mahfuz, O. :, Stie, A., & Pembangunan, B. (2024). ANALYSIS OF DIFFERENCES IN INTELLECTUAL CAPITAL DISCLOSURE BASED ON OWNERSHIP STRUCTURE (STUDY OF MANUFACTURING COMPANIES LISTED ON THE IDX 2021).
Maksum, A. (2022). ILS0028-23_Article-Contents.
Mulitawati, IM, & Retnasary, M. (2020). MARKETING COMMUNICATION STRATEGY IN BUILDING BRAND IMAGE THROUGH SOCIAL MEDIA INSTAGRAM (Descriptive case study of marketing communication of Polycrol Forte product through Instagram account @ahlinyaobatmaag). In Journal of Communication and Social Science Development (Vol. 4, Issue 1).
Mulyansyah, GT (2021). THE EFFECT OF SOCIAL MEDIA-BASED DIGITAL MARKETING ON CULINARY PURCHASE DECISIONS IN THE G-WALK AREA OF SURABAYA. Journal of Commerce Education (JPTN, 9.
Nasution, AS, HDN, DWM, & SPR (2023). Pg+165-176 (1).
Nathanael, C. (2023). Analysis of the Implementation of Good Corporate Governance and Risk Management on Fraud Risk at PT. BX.
Ngamal, Y., & PMA (2022). IMPLEMENTATION OF DIGITAL TECHNOLOGY RISK MANAGEMENT MODEL IN BANKING INSTITUTIONS REFERRING TO THE INDONESIAN BANKING DIGITAL TRANSFORMATION BLUEPRINT. www.ojk.go.id
Nur'aeni, NN, Ainulyaqin, M., & Edy, S. (2024). The Impact of the E-Commerce Phenomenon on Sales Levels in Traditional Markets from the Perspective of Islamic Psychology and Economics. Scientific Journal of Islamic Economics, 10(1), 270. https://doi.org/10.29040/jiei.v10i1.12146
Putri Maidina, L., Nurlaela Wati, L., & Muhammadiyah Jakarta, S. (2020). THE EFFECT OF POLITICAL CONNECTIONS, GOOD CORPORATE GOVERNANCE, AND FINANCIAL PERFORMANCE ON TAX AVOIDANCE. http://ejournal.stiemj.ac.id/index.php/akuntansi
Rachmawati, A., Agus Kana, A., Anggarini, Y., YKPN Management Science College, S., & -Indonesia, Y. (2020). Any Agus Kana. In Yunita Anggarini (Vol. 1, Issue 2).
Rahayu, P., & Hwihanus. (2024a). Macro-Fundamental Analysis, Micro-Fundamental Analysis of Company Value with Ownership Structure, Earnings Management, and Financial Performance as Moderating Variables in Manufacturing Companies Listed on the IDX in 2019-2023. LANCAH: Journal of Innovation and Trends, 2(2). https://doi.org/10.35870/ljit.v2i2.2726
Rahayu, P., & Hwihanus. (2024b). Macro-Fundamental Analysis, Micro-Fundamental Analysis of Company Value with Ownership Structure, Earnings Management, and Financial Performance as Moderating Variables in Manufacturing Companies Listed on the IDX in 2019-2023. LANCAH: Journal of Innovation and Trends, 2(2). https://doi.org/10.35870/ljit.v2i2.2726
Rochmatulaili, E., & Alif Rahman, M. (2021). THE EFFECT OF CREATIVITY AND INNOVATION ON FOOD COURT UMKM ENTREPRENEURSHIP (Vol. 3, Issue 1). https://ojs.uniyos.ac.id/index.php/YSEJ
Rofiaty, R., PBI, & AME (2023). 2440-Article Text-16888-1-10-20231227.
Sahat Maasi Sigalingging, A., Rudolf Leiwakabessy, D., & Suleman, S. (2024). EVALUATION OF THE EFFECTIVENESS OF WORKING CAPITAL MANAGEMENT IN IMPROVING COMPANY PROFITABILITY.
Shadrina, RN, & Sulistyanto, Y. (2022). ANALYSIS OF THE INFLUENCE OF CONTENT MARKETING, INFLUENCERS, AND SOCIAL MEDIA ON CONSUMER PURCHASE DECISIONS (Study of Instagram and TikTok Users in Magelang City). DIPONEGORO JOURNAL OF MANAGEMENT, 11(1). http://ejournal-s1.undip.ac.id/index.php/dbr
Siti Lailatus Saidah, & Hwihanus Hwihanus. (2023). Analysis of the Influence of Ownership Structure, Company Characteristics, Capital Structure, and Management Performance on Company Value. Digital Business: Journal of Management Science and E-Commerce Publication, 2(4), 424–438. https://doi.org/10.30640/digital.v2i4.2050
Suharsono, JP, & Nurahman, D. (2024). Utilizing YouTube as a Medium for Improving Services and Information. Journal of Social Sciences and Humanities, 7(1). https://jayapanguspress.penerbit.org/index.php/ganaya298
Yunita Budi Alifya Miranti, & Mulyanto Nugroho. (2025). The Effect of Ownership Structure, Investment Policy, and Earnings Management on Company Value with Financial Performance as an Intervening Variable in the Telecommunications Sub-Sector Listed on the Indonesia Stock Exchange. Journal of Economics, Management, Accounting, and Finance, 6(1), 12. https://doi.org/10.53697/emak.v6i1.2264
Yusnita Mahardini, N., Octaviani, S., Indriyani Putri, A., & Serang Raya, U. (2025). Financial Indicators and Family Ownership: The Key to Predicting Corporate Financial Distress. JRAK, 16(1), 1–15.
Yusuf, R. , HH , & WLA (2020). The Influence of Shopee Marketing Content on.
Zein Fitri, M., Ishelmiany Ziaharah, L., Siliwangi Bandung, S., & Sunan Gunung Djati Bandung, U. (2025). ISLAMICA: Journal of Islamic Religious Sciences. https://doi.org/10.59908/islamica.v9i1.158