Drawing on the social capital literature, we examine whether the co-existence of distinct yetinteracting social groups, namely family and non-family members, creates the conditions forincreased family firm innovation. In particular, we theorize that family and non-family socialcapital have a joint positive effect on family firm innovation and this joint effect is stronger thanthe single effects of family and non-family social capital. In addition, we predict that while familycontrol has a positive moderating effect, generational involvement has a negative moderatingeffect on the above-mentioned relationship. With supportive empirical results, our research makesimportant contributions to the existing literature.