Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses

Tweaking the entrepreneurial orientation–performance relationship in family firms: the effect of control mechanisms and family-related goals

“…In comparison to nonfamily firms, studies demonstrate that family firms show similar attitudes for other EO dimensions and their positive effect on financial performance, with regards to Innovativeness (Kellermanns et al 2012a;Bergfeld and Weber 2011;Kraus et al 2012b), Proactiveness (De Massis et al 2014;Zellweger and Sieger 2012;Nordqvist et al 2008) and Autonomy (Gómez-Mejía et al 2007;Habbershon and Pistrui 2002). However, research findings also indicate that EO dimensions in family firms might have to be refined, to external and internal components of Innovativeness and Autonomy (Nordqvist et al 2008;Zellweger and Sieger 2012), to different components or definitions of Risk-Taking (Gómez-Mejía et al 2007;Zellweger and Sieger 2012;Zahra 2005), with regards to the applicability of Competitive Aggressiveness (Nordqvist and Melin 2010;Lumpkin et al 2010;Kallmuenzer and Peters 2017) or depending on the age/generational context for Proactiveness (De Massis et al 2014;Martin and Lumpkin 2003).…”

“…This attitude is often considered to be less prevailing with family firms (Lumpkin et al 2010;Nordqvist and Melin 2010;Short et al 2009;Nordqvist et al 2008) as safety thinking (performance hazard risk) and keeping the firm control within the family (control risk) are assumed to be superior goals (Zellweger and Sieger 2012;Gómez-Mejía et al 2007;Hiebl 2013). However, undiversified wealth of the managers' own capital (ownership risk) habitually is invested in the company, leading to a risk-bearing and risk-sharing attitude (Zahra 2003) and indicating a relatively high level of Risk-Taking (Xiao et al 2001;Zellweger and Sieger 2012;Bianco et al 2013).…”

“…The dimension Competitive Aggressiveness is often considered to be less applicable for family businesses (Lumpkin et al 2010;Nordqvist and Melin 2010;Nordqvist et al 2008) due to positive image and reputation goals. A tendency to be aggressive towards competitors can result in negative consequences from the industry and society such as disrespect and a bad reputation (Deephouse and Jaskiewicz 2013).…”

Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors

“…Regarding the former, how the competitive environment (Lumpkin and Dess, 2001) and firm networks (Stam and Elfring 2008) influence EO have been studied. Regarding internal factors, authors have focused on how EO is affected by the effects of CEO characteristics (Boling et al 2016;Cruz and Nordqvist 2012), the impact of generational involvement in management (Casillas et al 2011;Sciascia et al 2013), the differences between long and short orientations (Lumpkin et al 2010), and organizational culture (Zahra et al 2004). …”

Time to recalibrate? Exploring entrepreneurial orientation of family businesses before, during, and after an environmental jolt

“…Research defines long-term orientation (LTO) as "the tendency to prioritise the long-range implications and impact of decisions and actions that come to fruition after an extended time period" (Lumpkin, Brigham and Moss, 2010, p.241). Indeed, extant research suggests long-term orientations and entrepreneurial orientation directly co-vary in family businesses (e.g., Brigham et al, 2014;Lumpkin, Brigham and Moss, 2010). For example, long-term orientation is associated with an increased focus on innovation, such as exploring new business opportunities and introducing new products as well as proactiveness through better understanding of changing customer needs (Narver and Slater, 1990;Zachary et al, 2011).…”