The antecedents of entrepreneurial risk-taking in private family firms: CEO seasons and contingency factors

Cirillo, Alessandro; Pennacchio, Luca; Carillo, Maria Rosaria; Romano, Mauro

doi:10.1007/s11187-019-00279-x

Cited by 24 publications

(30 citation statements)

References 80 publications

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“…Breakwell (2007) explained that a preference for risk is embedded in the subconscious roots of thinking, feeling and acting and suggested further empirical investigations into risk psychology. Ironically, entrepreneurs take risks in the quest for security, considering that risk is an actual entrepreneurial venturing act (Cirillo et al, 2019). When it is integral to a job, not taking a risk becomes a threat (Hedia and Affes, 2014).…”

Section: Literature Review and Hypotheses Development For Predictionsmentioning

confidence: 99%

Predicting the effect of entrepreneurial stressors and resultant strain on entrepreneurial behaviour: an SEM-based machine-learning approach

Arshi

Islam

Gunupudi

2021

IJEBR

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PurposeConsiderable evidence suggests that although they overlap, entrepreneurial and employee stressors have different causal antecedents and outcomes. However, limited empirical data explain how entrepreneurial traits, work and life drive entrepreneurial stressors and create entrepreneurial strain (commonly called entrepreneurial stress). Drawing on the challenge-hindrance framework (CHF), this paper hypothesises the causal effect of hindrance stressors on entrepreneurial strain. Furthermore, the study posits that entrepreneurial stressors and the resultant strain affect entrepreneurial behaviour.Design/methodology/approachThe study adopts an SEM-based machine-learning approach. Cross-lagged path models using SEM are used to analyse the data and train the machine-learning algorithm for cross-validation and generalisation. The sample consists of 415 entrepreneurs from three countries: India, Oman and United Arab Emirates. The entrepreneurs completed two self-report surveys over 12 months.FindingsThe results show that hindrances to personal and professional goal achievement, demand-capability gap and contradictions between aspiration and reality, primarily due to unique resource constraints, characterise entrepreneurial stressors leading to entrepreneurial strain. The study further asserts that entrepreneurial strain is a significant predictor of entrepreneurial behaviour, significantly affecting innovativeness behaviour. Finally, the finding suggests that psychological capital moderates the adverse impact of stressors on entrepreneurial strain over time.Originality/valueThis study contributes to the CHF by demonstrating the value of hindrance stressors in studying entrepreneurial strain and providing new insights into entrepreneurial coping. It argues that entrepreneurs cope effectively against hindrance stressors by utilising psychological capital. Furthermore, the study provides more evidence about the causal, reversed and reciprocal relationships between stressors and entrepreneurial strain through a cross-lagged analysis. This study is one of the first to evaluate the impact of entrepreneurial strain on entrepreneurial behaviour. Using a machine-learning approach is a new possibility for using machine learning for SEM and entrepreneurial strain.

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Section: Literature Review and Hypotheses Development For Predictionsmentioning

confidence: 99%

Predicting the effect of entrepreneurial stressors and resultant strain on entrepreneurial behaviour: an SEM-based machine-learning approach

Arshi

Islam

Gunupudi

2021

IJEBR

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“…Focusing on non-managerial employees, family owners tend to prefer to employ family members in their businesses (Barach et al, 1988;Cirillo et al, 2019;Cromie et al, 1995;Dyer & Handler, 1994). Furthermore, it is difficult for small businesses to attract qualified non-family personnel, since they will often feel uncomfortable interfering with family structures (Tan & Zutshi, 2001;Terberger, 1998).…”

Section: Non-managerial Family Employeesmentioning

confidence: 99%

Las capacidades directivas en la empresa familiar turística: ¿Es la profesionalización la clave para su desarrollo?

Camisón

Puig-Denia

Forés

et al. 2021

EJFB

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Este trabajo tiene como principal objetivo analizar los elementos de la particular estructura de gobierno de la empresa familiar y la implicación de la familia en el negocio con tal de comprobar sus efectos sobre las capacidades directivas. Asimismo, se estudiará la profesionalización en este tipo de empresas como variable moderadora. Para abordar este análisis, se tomarán como base el Enfoque Basado en Recursos y Capacidades y la Teoría de la Agencia. El estudio empírico se lleva a cabo sobre una base de 591 empresas turísticas españolas mediante un análisis de regresión lineal múltiple. Los resultados demuestran que muchas de las características peculiares de la empresa familiar ejercen un efecto negativo sobre sus capacidades directivas, impidiendo su correcto desarrollo. Sin embargo, la profesionalización del máximo responsable de la empresa familiar contribuiría a paliar dichos problemas, facilitando el desarrollo de dichas capacidades en la empresa familiar.

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“…According to the behavioural agency theory and the socio-emotional wealth perspective (Kotlar et al 2018), external funding through new equity issues can lead to conflict between the long term goals of the current generation of family owners and the short-term goals usually adopted by external investors. The EO-IC process, therefore, works better if the external investors are specialized in some area and able to provide value-added services as well as financial resources (Cirillo et al 2019). According to Benfratello et al (2008), the main form of R&D investment in the private sector is through internal financing.…”

Section: Corporate Governance Mechanisms Business Strategy Internalmentioning

confidence: 99%

Explanatory and predictive drivers of entrepreneurial orientation and innovation capacity: Evidence from family enterprises

Bobillo¹,

Sanz²,

Gaite³

2021

cuadernosgestion

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This paper aims to identify potential explanatory variables of the entrepreneurial orientation and innovation capacity (EO-IC) of family enterprises (FEs) through a comparative study of family businesses in Spain and Latin America. The innovation literature reports a paradigm shift whereby the dynamic boost provided by corporate governance and productivity is playing an increasing role as a driver of EO-IC and sustainable competitive advantage. This issue acquires particular relevance in the ase of family firms, where entrepreneurial and innovation capacities are characteristically hampered by socio-emotional and risk-aversion factors. We construct a panel of data on 182 large family enterprises (1,820 observations) domiciled in Argentina, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Spain, drawing on the Thomson Onebanker and ORBIS databases for the period 2008-2018. The results reveal the emergence of new explanatory variables for the structure of the family-firm EO-IC framework, some related to productivity; others more basically to corporate governance. They also show that, in Latin America, the use of business efficiency (productivity) factors in the planning and potentiation of EO-IC by family firms is hampered by the institutional (legal, regulatory, labour and educational) environment, where traditional factors such as firm size and ownership concentration are more relevant. In the Spanish case, however, the evidence points to a transition from traditional inputs towards business efficiency and productivity-related factors.

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The antecedents of entrepreneurial risk-taking in private family firms: CEO seasons and contingency factors

Cited by 24 publications

References 80 publications

Predicting the effect of entrepreneurial stressors and resultant strain on entrepreneurial behaviour: an SEM-based machine-learning approach

Predicting the effect of entrepreneurial stressors and resultant strain on entrepreneurial behaviour: an SEM-based machine-learning approach

Las capacidades directivas en la empresa familiar turística: ¿Es la profesionalización la clave para su desarrollo?

Explanatory and predictive drivers of entrepreneurial orientation and innovation capacity: Evidence from family enterprises

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