Entrepreneurial orientation in family firms: the effects of long-term orientation

Abstract

PurposeThis paper aims to shed light on the relationship between long-term orientation (LTO) and the dimensions of entrepreneurial orientation (EO) in family firms while adopting a stewardship perspective.Design/methodology/approachA survey of the top managers of family firms in Iran's science and technology parks was conducted, and partial least squares structural equation modeling (PLS-SEM) was used to analyze the collected data.FindingsThe research results showed that LTO has a positive effect on innovativeness and proactiveness and a negative effect on riskiness. Therefore, family firms' LTO pays off by enhancing their EO.Practical implicationsIn today's competitive world, EO is gradually becoming an inevitable necessity in many industries. Executives who want their firms to have a high level of performance should pay special attention to entrepreneurial behaviors. The present research informs the family firms' managers and practitioners to be long-term oriented to embrace more innovativeness and proactiveness, and less riskiness.Originality/valueSo far, the relationship between the LTO and entrepreneurial characteristics of family firms has remained ambiguous; this research is one of the first studies investigating this relationship.