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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.