The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth

Schepers, Jelle; Voordeckers, Wim; Steijvers, Tensie; Laveren, Eddy

doi:10.1007/s11187-013-9533-5

Cited by 199 publications

(193 citation statements)

References 78 publications

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“…Managing these goals refers to the adherence of family managers to SEW and thus rather non-financial ) firm goals, which secure the survival and longevity of the family firm. For these reasons, capabilities to take risks in business opportunities might not be used to the full extent (Schepers et al 2014), leading to potential financial performance losses. Drawing on the results of this study, we conclude that the degree of family managers' adherence to SEW goals needs to be particularly managed for the effect of Risk-Taking on financial performance.…”

Section: Discussionmentioning

confidence: 99%

“…This is important as firm performance could also be explained by other influencing factors besides the proposed relationships. Thus, we implemented dummy variables for the industries, in order to control for industry specific performance effects (Schepers et al 2014). Prior research also indicated potential influences of firms size on company outcomes (Kellermanns et al 2012a;Beck et al 2011).…”

Section: Control Variablesmentioning

confidence: 99%

“…Attempts to transmit the EO-performance relationship to family firms have been pursued, predominantly by analyzing the effect of particular EO dimensions from the multidimensional construct on financial performance (e.g. Lumpkin et al 2009;De Massis et al 2014;Naldi et al 2007;Bouncken et al 2016), by focusing on growth as the performance measure , by investigating effects of management composition (Sciascia et al 2013), or by investigating the moderating effect of Socio-Emotional Wealth (SEW) on the unidimensional EOperformance relationship (Schepers et al 2014). Despite the importance to understand how entrepreneurial attitudes take effect in family firms, there is not yet a concordant opinion on the transmission of the multidimensional EO construct on family firm performance (Zellweger and Sieger 2012;Kallmuenzer 2015).…”

Section: Introductionmentioning

confidence: 99%

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

2017

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Management literature is currently giving growing conceptual and empirical attention to the peculiarity and relevance of entrepreneurial attitudes in family firms, with divergent outcomes. Aiming at concretizing the effects of these attitudes, denoted by the entrepreneurial orientation construct, on family business performance and considering that family dynamics come into play in this relationship, we particularly investigate the impact of control mechanisms and familyrelated goals. Findings are based on a sample of 180 family firms and show that Proactiveness and Autonomy are particularly relevant to financial performance. Agency-problems avoiding control mechanisms moderate the effect of Innovativeness and Autonomy, while socioemotional wealth (SEW) goals moderate the effect of Risk-Taking, respectively. The usage of these mechanisms and managing SEW goals provide opportunities for a more efficient exploitation of entrepreneurial attitudes.

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Section: Discussionmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

2017

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“…Research on the EO-firm performance relationship in the family business context has increased significantly because many researchers see family firms as a unique opportunity to analyze entrepreneurship (Garcés-Galdeano et al 2016;Schepers et al 2014). Their unique characteristics, based on the interaction between family and business goals in decision making, affect how family firms are governed (e.g., in relation to risk behavior and strategic orientation) and have implications for their entrepreneurial attitudes and, ultimately, firm outcomes (Randerson et al 2015).…”

Section: Introductionmentioning

confidence: 99%

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

et al. 2017

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Entrepreneurial success in family SMEs is largely determined by the knowledge, skills, and new ideas contributed by board directors, the most important actors in the formulation of corporate strategy and decision making. The composition of family SME boards has traditionally been homogeneous, as such boards usually comprise male family members. Boards' contributions, however, depend on their level of diversity and strategic involvement. This study analyzes the moderating effects of two main sources of board diversity in family firms, family involvement level and gender diversity, as potential means of enhancing family firms' success when exploiting entrepreneurial initiatives. This study also explores whether these two potential moderators depend on the strategic involvement of the board directors. Based on a sample of 230 Spanish family firms, we found that the link between entrepreneurial orientation and performance is stronger in firms with lower levels of family involvement and higher levels of gender diversity in the board. Moreover, the board's high strategic involvement may strengthen the positive impact of gender diversity and change the moderating influence of family involvement from negative to positive.

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“…Nevertheless, as noted by Lumpkin and Dess (1996), there are two main reasons that the relationship between EO and performance is complex. On the one hand, a number of factors, such as strategies, can mediate this relationship (Lumpkin and Dess 1996;Schepers et al 2014;Wiklund and Shepherd 2005). On the other hand, performance is a multi-dimensional concept that tends to become more complex, particularly because firms are increasingly incentivized to consider SD, i.e., non-financial considerations, in their decision making (Battisti and Perry 2011;Perrini et al 2011).…”

Section: Introductionmentioning

confidence: 99%

Do Entrepreneurial SMEs Perform Better Because They are More Responsible?

2016

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Many scholars have investigated the direct impact of entrepreneurial orientation (EO) on performance, but this direct association seems both spurious and ambiguous because many parameters may have an indirect influence on this relationship. The present study thus considers sustainable practices-environmental practices, social practices in the workplace (SPW), and social practices in the community (SPC)-as three probable mediators in the relationship between EO and performance, which is considered in terms of its financial and non-financial dimensions. We seek to show to what extent small-and medium-sized enterprises' (SMEs) sustainable practices are useful assets, which are supported by EO, to improve performance. Using a structural equation modeling approach, data collected from 406 French SMEs were tested against the model. Our findings reveal that EO has a positive impact on the implementation of sustainable practices and that SPW partially mediate the link between EO and performance. Taken together, these findings suggest that EO plays a role in indirectly promoting performance by enhancing certain human resource management practices.

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The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth

Cited by 199 publications

References 78 publications

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

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

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

Do Entrepreneurial SMEs Perform Better Because They are More Responsible?

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