Corporate Entrepreneurship is increasingly gaining in importance as a critical strategy for continuous renewal, via innovation, to propel a company to become highly entrepreneurial and achieve enhanced performance. However, there is a lack of research on family businesses in relation to corporate entrepreneurship. This study develops a theoretical framework relating to strategic innovation, a component of corporate entrepreneurship, within the family business. Three theories are utilized: resource based theory, risk theory, and control theory. Additionally, we analyze the positive and negative influences on strategic innovation in family firms, both tangible and intangible. The theoretical framework also considers the relevant demographic characteristics of family businesses. The theoretical model developed in this study encompasses two levels, both company and a theoretical process model. This research has implications for theory and practice. With the incidence of family business being about two thirds of all businesses, it is imperative for regional and national economic growth, that new knowledge informs how to facilitate corporate entrepreneurship and innovation.