LMX, POS, and task environment as antecedents of entrepreneurial orientation in family business

Abstract

Family business is facing an uphill challenge to survive and grow. Entrepreneurial orientation (EO) is one extensive strategy that may provide the solutions. To be comprehensive, our EO construct model considers important antecedents such as internal organisation aspect represented by perceived organisational support (POS), individual element served by leader-member exchange (LMX) and environmental factor acted by perceived task environment (PTE). Our research focuses on how these concepts would relate to EO by building hypothesis and empirical analysis of their respective relations. This study also proposes motivation as alternative non-financial performance measurement of EO. The research was conducted using quantitative empirical analysis of 150 top management team (TMT) representing 51 business units with family context in emerging nation. This study shows that although they might have different significance, all three concepts are positively related to EO and it is plausible to incorporate motivation as the result of EO research.