Entrepreneurial Leadership in Austrian Family SMEs: A Configurational Approach

Abstract

This article explores the role of stewardship practices related to entrepreneurial leadership in turning entrepreneurial orientation (EO) into family firm performance while considering its environmental context. Family business research has not fully investigated how the EO–financial performance relationship depends on configurations of internal and external factors which establish strategic fit. We argue that family firms can overcome the often-highlighted paternalism-entrepreneurship paradox by employing stewardship practices related to entrepreneurial leadership (internal factor), which in turn can help them leverage strategic fit between EO and dynamic environments (external factor). The results of a survey of 162 Austrian small and medium-sized family enterprises (family SMEs) show that family SMEs can only profit from EO under certain configurations of internal and external factors. Employing stewardship practices related to entrepreneurial leadership turns out to be an efficient and necessary condition for transforming EO into performance. Environmental dynamism is, furthermore, a double-edged sword facilitating and impeding the transformation of EO into performance. These findings contribute to existing research by shedding light on the role of stewardship practices in establishing strategic fit in entrepreneurial family firms.

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

“…Thus, the family business has become one of the most suitable modes of coordination in Iran's risky business environment (Coville, 2020). EO is important for family businesses since it is one of the primary sources of organizational innovation (Ferreras-M endez et al, 2021), and performance (Strobl et al, 2022). The research findings show that to enhance innovativeness, and proactiveness, and diminish riskiness level, family businesses that operate in Iran's turbulent economy could be powered by LTO, which is a proprietary characteristic that differentiates family businesses from their competitors.…”

“…EO is important for family businesses since it is one of the primary sources of organizational innovation (Ferreras-Méndez et al. , 2021), and performance (Strobl et al. , 2022).…”

“…Entrepreneurial orientation (EO) refers to strategic orientation of an organization for developing new possibilities, offerings and creative competitive actions characterized by innovation, risk-taking and proactivity (Kearney et al, 2020). EO is important to family firms since it is associated with positive performance results such as the increase in profitability, growth, internationalization, innovation and overall performance (Hern andez-Perlines and Ibarra Cisneros, 2017; Arzubiaga et al, 2019;Alayo et al, 2019;Calabr o et al, 2021;Strobl et al, 2022). However, research on entrepreneurship in family firms is divided as to whether these organizations represent a context where entrepreneurship flourishes or is hindered (Zellweger and Sieger, 2012;Duran et al, 2015;Le Bretton-Miller and Miller, 2018;Arz, 2019;Moreno-Men endez et al, 2022;Jocic et al, 2021).…”

Entrepreneurship in family firms: an updated bibliometric overview

“…Gjergji et al (2022) connected the dimensions of socioemotional wealth to entrepreneurial behaviors in family firms, showing that except for "emotional attachment among family members," other dimensions play a positive role. Strobl et al (2022) described how family-owned SMEs benefit from entrepreneurial orientation under entrepreneurship leadership, while environmental dynamism can impede their entrepreneurship. Chen et al (2022) found that family control negatively influences entrepreneurial activities in family firms.…”

Introduction to the Research Handbook on Entrepreneurship and Innovation in Family Firms

“…Thus, the owning family can exert substantial influence on key strategic decisions and the development of the business through their ownership, sometimes in conjunction with the participation of family members in management (Davis, 1983) as well as family members on supervisory boards (Von Schlippe et al, 2021). In many family firms, ownership and management are maintained across several generations, and a key challenge for their long-term survival is to sustain the entrepreneurial and innovative spirit of the founding generation of entrepreneurs for their successors (Littunen and Hyrsky, 2000;Roffia et al, 2021;Strobl et al, 2022).…”