Entrepreneurship orientation in family business: Decision process structure & succession planning

Abstract

Family firms play a significant role in economies worldwide, contributing substantially to wealth generation and employment opportunities. Particularly prevalent in rural and remote areas where larger enterprises may struggle to operate effectively, these firms are crucial for both economic growth and social development. Entrepreneurship, characterized by innovation, courage, and strategic planning, is fundamental for driving economic development and instigating substantial changes within market economies. Previous research has identified various factors influencing entrepreneurial development in response to evolving business environments.This paper aims to investigate the capacity of enduring family firms to maintain an entrepreneurial orientation while also prioritizing strong family ties and effective governance structures. Building upon existing theoretical frameworks in the realms of family business and entrepreneurship, this study examines the prevalence of entrepreneurship within family businesses. Additionally, it explores the significance of entrepreneurial orientation in succession planning and the decision-making processes within family firms.The conceptualization presented here integrates insights from existing literature and proposes a research agenda for further exploration in this field. By reviewing relevant literature and outlining a research methodology, this paper seeks to shed light on the intersection of family business dynamics and entrepreneurial behavior. Understanding the interplay between entrepreneurial orientation, family involvement, and governance structures is crucial for informing strategic decision-making processes within family firms.In summary, this paper contributes to the broader understanding of the role of entrepreneurship within family businesses and its implications for succession planning and decision-making. By elucidating the complex dynamics at play in these firms, it offers insights that can inform both academic research and practical management strategies for sustaining and enhancing the entrepreneurial spirit within family-owned enterprises.