Orientation In Family Firms Research Articles

Internal social capital and entrepreneurial orientation in family firms: A double-edged sword

Internal social capital and entrepreneurial orientation in family firms: A double-edged sword

Effect of environmental dynamism on entrepreneurial orientation in family firms: the moderating role of informal institutions

PurposeThe aim of this paper is to investigate the effects of environmental dynamism on different EO dimensions in family firms. The authors also examine the moderating role of national culture (uncertainty avoidance and in-group collectivism) and the level of family control and influence in fostering/hindering this relationship.Design/methodology/approachA survey was conducted among 1,143 family firms from twenty-eight countries. The authors developed and tested hypotheses through a fixed-effects regression analysis.FindingsThe findings suggest that environmental dynamism has a positive effect on all three EO dimensions. Analysis reveals a positive moderating role of family control and influence and negative moderating roles of in-group collectivism and uncertainty avoidance.Practical implicationsThe findings imply that family firm managers should carefully interpret the influence of their national culture on family firm behavior. More specifically, family firms in dynamic environments should consider the importance of the national culture in which they are embedded. Those operating in high uncertainty avoidant and highly collectivist cultures should take proactive steps to cultivate a corporate entrepreneurial culture. On the other hand, the family should not undermine the effect of its control and influence. In dynamic environments, family control and influence may be a competitive advantage in reinforcing entrepreneurial orientation.Originality/valueThe study contributes to the literature on EO in family firms by expanding the previous research on the antecedents of EO and examining moderation effects of culture and family control and influence across a broad multi-country sample. In contrast with the common findings regarding the effect of family logic on EO, the study shows the strengthening role of family control and influence in the relationship between environmental dynamism and EO. The authors show that culture as an informal institution may also play a critical role in hindering/strengthening the relationship between environmental dynamism and EO.

Dual innovation of the business model: the regulatory role of entrepreneurial orientation in family firms

PurposeFamily farms are seen as a powerful force for rural development, and they are gaining more and more research attention. This study aims to explore the relationship between the social networks of family farms and the dual innovation of the family farm business model from the perspective of entrepreneurial orientation.Design/methodology/approachUsing a questionnaire survey of 169 family farms in Qingdao, China, descriptive and inferential statistics were used to analyze the data collected. The study hypothesis was tested using inferential tests (regression analysis).FindingsThe study results show that innovative, efficiency- and novelty-based business models facilitated by social networks have a favorable and significant impact on the performance of family farms. Furthermore, the relationship between social networks and new business model creation is positively influenced by an entrepreneurial orientation.Originality/valueThis study is distinctive in that it examines the mechanisms underlying family farm growth from an entrepreneurial standpoint, classifying family farm social networks for the first time into social, market and governmental categories and looking at their impact on the creation of new business models. In addition, it looks into the relationship between the innovation and social network aspect of the family farm business model from an entrepreneurial perspective, offering fresh insight into this connection. It also examines the family farm business model’s connection to innovation and social networks from an entrepreneurial standpoint, providing new insight into this relationship.

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

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.

Influence of resource bricolage on entrepreneurial orientation in family firms in Western Province, Sri Lanka: The moderating role of family member characteristics

Influence of resource bricolage on entrepreneurial orientation in family firms in Western Province, Sri Lanka: The moderating role of family member characteristics

Influence of Socio-emotional Wealth on Entrepreneurial Orientation in Family Firms: A Bibliometric Analysis and Systematic Review

This article explores the effects of socio-emotional wealth on the family firms’ entrepreneurial orientation. The family firms aspire to attain economic goals and maintain family control and influence over their firms. These conflicting goals may become detrimental to their entrepreneurial orientation and firm performance. Against the background of the heterogeneity of family firms, this article deliberates on the effects of socio-emotional wealth on entrepreneurial orientation. This article has explored the research trajectories and themes of socio-emotional wealth and entrepreneurial orientation research discourse by adopting the methods of bibliometric analysis and systematic review research protocol. This article reviews the findings of the research discourse on the relationship between socio-emotional wealth and entrepreneurial orientation. In particular, this article inquires whether family firms’ entrepreneurial orientation decreases because they are concerned about preserving their socio-emotional wealth and, if so, under what conditions. This article also makes practical recommendations for using the desire to meet non-economic goals judiciously. This article provides insights into how family firms can change their business strategies to synthesize the much-needed entrepreneurial orientation to preserve their socio-emotional wealth.

Employee Silence and Entrepreneurial Orientation in Small and Medium-Sized Family Firms

This paper aims to assess differences between employees of family and non-family firms regarding their levels of employee silence and their perceptions of the company’s entrepreneurial orientation. Moreover, focusing on family firms, we assess the relationship between the levels of employees’ silence and their perceptions of the firm’s entrepreneurial orientation. The empirical evidence is provided by a sample of 245 Portuguese employees, 117 employees of family firms, and 128 of non-family firms, who responded to a questionnaire that included employee silence and entrepreneurial orientation measures. Results reveal that family firms’ employees show higher levels of employee silence but perceive their companies as less entrepreneurially oriented than employees of non-family companies. In addition, our results do not support the idea that there is a relationship between the levels of employee silence and the employee’s perception of the company’s entrepreneurial orientation. This paper offers initial insights into the debate on the relationship between the levels of employee silence and the employee’s perception of the company’s entrepreneurial orientation in family firms.

Time Perspective and Entrepreneurial Orientation in Family Firms: Some Theoretical Propositions

In this theoretical article, we highlight the central role of an important dimension of psychological time related to individual experiences and perceptions of the past, present, and future—time perspective (or TP)—in influencing the entrepreneurial orientation (EO) of family firms. To do so, we draw on the TP, entrepreneurship, and family business literatures and provide insight into how a CEO’s TP influences family firm engagement in entrepreneurial activities. Family firm specifics also play important roles in the TP-EO relationship. We propose that (1) the positive TP of the family firm CEO (i.e., past-positive, present-hedonistic, and future TP) has positive effects on family firm EO; (2) the negative TP (i.e., past-negative and present-fatalistic TP) has negative effects on family firm EO, but these effect are mitigated by family firm specifics; and (3) the effects of EO on the subsequent TP of the CEO (and other family members) are based on previous TP and are likely to be moderated by the feeling of being instrumental and positive affect, family support, and perseverance. Last, we discuss some implications for theory and research.

Revisiting Internal Market Orientation in family firms

The present conceptual paper depicts Internal Market Orientation (IMO) theory development conceptualization with a contemplation of new conditions, realities and technologies available to modern businesses in service industries. Based on the results of a conceptual study, this study proposes a novel IMO framework which reflects the noted global changes that affects family businesses. The denoted model introduces novelty variables including Information Communication Technologies (ICTs) and Outsourced Personnel structural constructs. They avail to measure the effect of IMO implementation on job satisfaction and employee commitment that, in their turn, exhibit a positive impact on business performance in service industries.

Inspired by the Soul of Savannah: Spotlight on Entrepreneurship Orientation in Family Firms

Entrepreneurship orientation is critical to the growth, survival, and profitability of family businesses. Listening to the voices of 30 family firm owner-managers through 60 interviews and building...

Role of Sovereignty Goals in Explaining Stakeholder Orientation in Family Firms

This study shows that pursuit of goals associated with sovereignty (i.e. independent and sustainable power over the firm) is a pivotal antecedent of the link between stakeholder orientation and family involvement. We argue that this is due to organizational legitimacy concerns and family-firm identity fit arising from sovereignty pursuit.

Corporate governance and family firm performance during the Global Financial Crisis

AbstractWe investigate the impact of corporate governance on accounting and market performance relationships of family firms during the Global Financial Crisis (GFC). We expect the monitoring aspects of corporate governance to complement the long‐term orientation of family firms, improving the value relevance of accounting and market performance during times of exogenous financial shocks such as the GFC. We find that the family‐firm value is more sensitive to book value than earnings changes. We also find better corporate governance, irrespective of whether it is a family firm or non‐family firm, is associated with better accounting and market performance during the GFC.

Bridging the micro-macro gap: A multi-layer culture framework for understanding entrepreneurial orientation in family firms

Prior research on the antecedents of entrepreneurial orientation (EO) in family firms heavily relied on structural family-level characteristics but neglected the contribution of the business system. This may inhibit the current debate as it limits our understanding of the organizational mechanisms through which “familiness” is translated into EO. To elaborate the adolescent theory of EO in family firms and motivate future work on the topic, this article seeks to bridge the micro (family)-macro (firm-level EO) gap by introducing a multi-layer culture framework. Using an interpretivist single case study design, the theoretical utility of that framework is demonstrated by capturing the lived experiences of both family and nonfamily managers involved in shaping the organizational culture of a second-generation German family firm. The model that emerged from the analysis of archival and ethnographic interview data cuts across analytical levels and illustrates, in a fine-grained manner, how the identified cultural concepts operate and interact to stimulate EO. Specifically, it shows that family values of altruism and preservation are translated into EO by an organizational culture characterized by long-term and involvement orientation as well as psychological safety and empowerment climates. The model further uncovers the specific underlying processes of cultural transmission, such as building a quasi-family, demonstrating servant leadership behaviors, providing a written self-image, and applying value-based recruitment principles.

Management control systems in family businesses: Do women matter? Evidence from the Italian food sector

The aim of the project was to investigate medium-size family firms in Italy operating in the food sector, which is crucial for the national economy as it ranks second after the metal and mechanical engineering industries. Special attention was paid to whether the presence of women in top managerial positions had any significant effect on the strategic orientation of family firms (FFs), in terms of strategy formulation and implementation of management control systems. The results of empirical analysis using a sample of family businesses show that gender diversity in top managerial positions can benefit strategic orientation, as FFs are more likely to formulate and implement strategy through advanced management control tools.

Congruence in Exchange: The Influence of Supervisors on Employee Performance in Family Firms

A pluralistic focus on economic and noneconomic goals creates dissonance for family firm employees. Drawing on social exchange theory, this study explores the idea that congruence between supervisor familial status and importance placed on socioemotional wealth aids in resolving this dissonance and allows committed employees to translate their efforts into better performance. The three-way interaction results show that committed employees working for congruent supervisors experienced higher task and citizenship performance. Supervisor incongruence resulted in the opposite effect. These findings suggest supervisor genuineness is vital to employee performance because of the dissonance associated with the pluralistic goal orientation in family firms.

Entrepreneurial orientation in family firms: New drivers and the moderating role of the strategic involvement of the board

In this study, we examine new drivers that generate a disposition toward entrepreneurial activity in family firms and how the strategic involvement of the board of directors (SIBD) moderates the relationships between these drivers (image of the firm, willingness to change, and access to financial resources) and entrepreneurial orientation (EO). Using a sample of 230 family small and medium-sized enterprises (SMEs), our results confirm that a good family firm image and willingness to change may be powerful tools that stimulate a firm to develop entrepreneurial activities. The negative relationship between access to financial resources and EO may relate to the false belief that financial resources help firms be more creative and to maintaining family control of the firm and the socioemotional endowment. Contrary to our expectations, we also find that the SIBD negatively influences the relationship between the above drivers and EO, pointing to the need for more open boards of directors in family SMEs in order to develop and implement entrepreneurial strategies. JEL Classification: L2, M1

Entrepreneurial Orientation and the Family Firm: Mapping the Field and Tracing a Path for Future Research

Despite several calls for the further study of entrepreneurial orientation in family firms, we still have a fragmented understanding of this topic, whose full potential has yet to be reached. To shed new light on this issue, this article first maps the family business field by carrying out a systematic review and content analysis of the 78 articles identified at the confluence of entrepreneurial orientation and family firms. Our study describes and critically assesses previous research as well as the conclusions reached. Second, this article identifies the main research gaps and provides a path for future investigations.

Entrepreneurial Orientation in Family Firms: Looking at a European Outermost Region

This study addresses a current debate in the family business literature involving the extent to which the family business context hinders or promotes entrepreneurial behavior. The empirical evidence is provided by 155 small-sized firms, 82 family-controlled and 73 nonfamily-controlled, operating in an outermost region, the Autonomous Region of the Azores. This study analyzes the differences between family and nonfamily firms in regard to entrepreneurial orientation and how it is influenced by family participation. Results show that there are differences in entrepreneurship orientation and in two of its three dimensions, while revealing that family participation is negatively associated with entrepreneurial orientation and its three dimensions.

Psychological ownership, knowledge sharing and entrepreneurial orientation in family firms: The moderating role of governance heterogeneity

Adopting a stewardship perspective and relying on a sample of 93 Spanish family firms, we emphasize the importance of psychological ownership as a primary determinant of entrepreneurial orientation in terms of proactiveness, innovativeness and risk taking. We also suggest that the relationship between psychological ownership and entrepreneurial orientation is mediated by knowledge sharing. Finally, we assess the potential moderating roles of heterogenous governance conditions in terms of the generation in control, generational involvement and family involvement in the top management team with regard to the relationship between psychological ownership and knowledge sharing. Research and managerial implications are shared in the concluding section.

Sustainable Entrepreneurial Orientation in Family Firms

This study examines how an entrepreneurial orientation moderates the effect of corporate social responsibility (CSR) on family firm performance. Analysis of 174 family firms was conducted using second-generation, partial least squares structural equation modeling (PLS-SEM) in SmartPLS 3.2.6. A survey of family firms and compliant sustainability reports, made under the rules of the GRI (Global Reporting Initiative) for these firms yielded the empirical data. This study contributes to the literature in several ways. First, the analysis shows that GRI reports offer a suitable way for analyzing CSR because the proposed measures are reliable and valid. Second, CSR actions by family firms exert a substantial positive influence on these firms’ performance. Third, entrepreneurial orientation is a good predictor of the success of family firms, positively influencing their performance. Fourth, entrepreneurial orientation positively moderates the effect of CSR on family firm performance, enhancing this effect.