Entrepreneurial Orientation, Risk Taking, and Performance in Family Firms

2007 ◽  
Vol 20 (1) ◽  
pp. 33-47 ◽  
Author(s):  
Lucia Naldi ◽  
Mattias Nordqvist ◽  
Karin Sjöberg ◽  
Johan Wiklund
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Distinct Dimension ◽  
And Performance ◽  
Entrepreneurial Activities ◽  
Practical Implications

This article focuses on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms. Drawing on a sample of Swedish SMEs, we find that risk taking is a distinct dimension of entrepreneurial orientation in family firms and that it is positively associated with proactiveness and innovation. We also find that even if family firms do take risks while engaged in entrepreneurial activities, they take risk to a lesser extent than nonfamily firms. Moreover, and most importantly for our understanding of entrepreneurial orientation in family firms, we find that risk taking in family firms is negatively related to performance. Both theoretical and practical implications of our findings are provided.

Family Firms and Entrepreneurial Orientation in Publicly Traded Firms

2009 ◽  
Vol 22 (1) ◽  
pp. 9-24 ◽  
Author(s):  
Jeremy C. Short ◽  
G. Tyge Payne ◽  
Keith H. Brigham ◽  
G.T. Lumpkin ◽  
J. Christian Broberg
Keyword(s):  
Content Analysis ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Family Firm ◽  
Firm Characteristics ◽  
Publicly Traded ◽  
Competitive Aggressiveness ◽  
Publicly Traded Firms ◽  
Entrepreneurial Activities

There is considerable disagreement about whether family firm characteristics hinder or support entrepreneurial activities. This article highlights the existence of an entrepreneurial orientation in family firms, and it examines differences between family and nonfamily firms on the entrepreneurial orientation dimensions of autonomy, competitive aggressiveness, innovativeness, proactiveness, and risk taking, using content analysis of shareholder letters from S&P 500 firms. As such, family firms exhibit language consistent with an entrepreneurial orientation for all dimensions but use less language than that of nonfamily firms in relation to autonomy, proactiveness, and risk taking.

Affective and Emotional Determinants of Entrepreneurial Orientation Within Family Firms

2019 ◽  
pp. 157-181
Author(s):  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
María José Naranjo-Sánchez ◽  
Laura Victoria Fielden
Keyword(s):  
Entrepreneurial Orientation ◽  
Affective Commitment ◽  
Family Firms ◽  
Socioemotional Wealth ◽  
Business Context ◽  
Emotional Factors ◽  
Strategic Behaviors ◽  
Scant Attention ◽  
Entrepreneurial Activities ◽  
The Impact

As a predominant form of business organization, family firms have attracted increasing attention by scholars, and especially by those researching entrepreneurial orientation with the aim of better understanding of entrepreneurial activities pursued by enterprises. However, the literature on the confluence of entrepreneurial orientation and family firms has paid scant attention to the influence of affective and emotional factors. To cover this research gap, the authors analyze the impact of affective commitment and concern for socioemotional wealth preservation on entrepreneurial orientation. To do so, they performed an empirical study using the data collected from 342 small and mid-sized family firms from Portugal, a country where family firms are under-researched even though they make up the backbone of the economy. Results show that both affective commitment and socioemotional wealth positively impact entrepreneurial orientation, pointing to the need to further research the relationships between such factors and strategic behaviors in the family business context.

Elucidating the Linkages Between Entrepreneurial Orientation and Local Government Sustainability Performance

2019 ◽  
Vol 50 (1) ◽  
pp. 92-109 ◽  
Author(s):  
Aaron Deslatte ◽  
William L. Swann
Keyword(s):  
Local Government ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Local Governments ◽  
Nationwide Survey ◽  
The Public ◽  
Sustainability Performance ◽  
Public Managers ◽  
Antecedents And Consequences ◽  
And Performance

Linking strategic management to performance has been called essential for public managers to confront pernicious environmental and community problems in the 21st century. This article examines the role that an organization’s entrepreneurial orientation (EO) plays in the linkages between organizational capacities, strategies, and perceived performance. An EO is considered a key driver of a public organization’s willingness to engage in risk taking, innovation, and proactivity aimed at enhancing organizational routines, decision-making, and performance. Scholars have provided empirical guidance for the antecedents and consequences of entrepreneurialism in bureaucracy, yet we know little systematically about how EO links to strategies that may affect performance in the public sector. To investigate, we employ a mixed methods design using a nationwide survey of U.S. local governments and interviews with local government managers about their experiences in sustainability programs. Quantitatively, we find evidence for environmental factors of political and administrative capacities positively influencing EO, and that strategic activities of performance information use, venturing, and interorganizational collaboration mediate the relation between EO and perceived sustainability performance. Interviews corroborate these findings and illuminate how local government managers proactively engage stakeholders, consider risk taking, build capacity, and pursue innovation in sustainability.

Market orientation and women-owned SMEs performance

2020 ◽  
Vol 9 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Muhammad Amir Rashid ◽  
Masood Nawaz Kalyar ◽  
Imran Shafique
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Strategic Decision ◽  
Hierarchical Regression ◽  
Full Potential ◽  
Survey Questionnaire ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

PurposeThis research aims to investigate the contingent effect of entrepreneurial orientation (EO) and strategic decision responsiveness (SDR) on the link of market orientation (MO) and performance of women-owned small and medium-sized enterprises (WSMEs).Design/methodology/approachData were collected from 909 WSMEs of Punjab province Pakistan through survey questionnaire. Hierarchical regression is employed to perform the analysis.FindingsResults reveal that although higher-level dimensions of MO directly affect the WSMEs performance, however this linkage becomes stronger under SDR and higher-level dimensions of EO.Practical implicationsManagers should emphasis on the demonstration of EO's dimensions and SDR to utilize the full potential of MO to promote WSMEs performance.Originality/valueTo study the contingent effect of SDR and EO's dimensions in the MO–WSMEs performance nexus is the novelty of this study.

Family firms taking surprising risks: building success on conservative values

2019 ◽  
Vol 40 (5) ◽  
pp. 21-27 ◽  
Author(s):  
Mark Lehrer ◽  
Stefan Schmid
Keyword(s):  
Risk Taking ◽  
Design Methodology ◽  
Family Firms ◽  
Risk Mitigation ◽  
Content Type ◽  
Substantial Risk ◽  
Conservative Values ◽  
Major Facilitator ◽  
Open Question ◽  
Practical Implications

Purpose This paper aims to explore hidden wellsprings of risk-taking in family firms. Design/methodology/approach The high tolerance for risk shown repeatedly by the famous family firm Hipp of Germany is documented. Three major risk-taking episodes at Hipp are examined. Findings Counterintuitively, conservative values were actually a major facilitator of risk-taking at Hipp. Research limitations/implications The ramifications for other family firms, especially in Germany’s so-called Mittelstand, are examined. An open question is whether the relevant scope of the foregoing analysis may be confined to national contexts like German Mittelstand with its highly developed sector of family firms. Practical implications Contrary to received wisdom, family firms with conservative values may actually have certain advantages in their capacity not only to assume certain types of risks but also to mitigate such risks. Especially the communitarian embeddedness of such values may provide a layer of risk mitigation. Social implications At least in some countries, such as Germany, family firms are indeed willing to engage in substantial risk-taking. With their approach of combining conservative values and risk-taking, they contribute to considerable wealth and societal development. Originality/value Conservatism in management and risk-taking propensity are usually thought of as antipodes. However, it is necessary to distinguish between conservatism (which usually equates to risk aversion) and conservative values (which, as shown, may be highly compatible with a willingness to engage and succeed in risky undertakings).

Navigating the entrepreneurial quest for high export performance

2020 ◽  
Vol 36 (5) ◽  
pp. 13-15
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Export Performance ◽  
Foreign Market ◽  
Strategic Choices ◽  
Content Type ◽  
Probability Of Success ◽  
Pertinent Information ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the impact of entrepreneurial orientation (EO) on strategic choices when entering a foreign market. On balance the results reveal that combining all three EO trait dimensions – innovativeness, risk taking, and proactiveness – creates the best probability of success when entering a product into a new foreign market by deploying either an explorative or an exploitative product marketing strategy. Although a riskier explorative strategy is the most promising option for building longer-term competitive advantage, blending this with elements of a more conservative but growth-lacking exploitative strategy can yield synergistic benefits. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Entrepreneurial orientation in family firms: the moderating role of technological intensity and performance

2014 ◽  
Vol 12 (1) ◽  
pp. 27-45 ◽  
Author(s):  
Lucía Garcés-Galdeano ◽  
Martín Larraza-Kintana ◽  
Carmen García-Olaverri ◽  
Marianna Makri
Keyword(s):  
Entrepreneurial Orientation ◽  
Family Firms ◽  
And Performance ◽  
Technological Intensity ◽  
Moderating Role

An empirical study about knowledge transfer, entrepreneurial orientation and performance in family firms

2016 ◽  
Vol 10 (5) ◽  
pp. 534 ◽  
Author(s):  
Ascensión Barroso Martínez ◽  
Ramón Sanguino Galván ◽  
Tomás M. Bañegil Palacios
Keyword(s):  
Knowledge Transfer ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
And Performance

scholarly journals Interface between entrepreneurial orientation, strategic planning and budget: Configurations for high performance

2021 ◽  
Author(s):  
Anderson Frare ◽  
Vagner Horz ◽  
Marco Aurélio Barbosa ◽  
Ana Paula da Cruz
Keyword(s):  
Strategic Planning ◽  
Organizational Performance ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
High Performance ◽  
Qualitative Comparative Analysis ◽  
Three Solutions ◽  
Study Objective ◽  
And Performance ◽  
Social Management

Study objective: To analyze and identify the configurations capable of promoting high organizational performance, based on the relationship between innovativeness, risk-taking, proactiveness and strategic planning and budget. Methodology/approach: Data collected by survey with companies linked to the Chamber of Commerce, belonging to one of the municipalities with the highest development rates in Brazil; and analyzed using the fuzzy-set Qualitative Comparative Analysis (fsQCA) technique. Main Results: The findings indicate that innovativeness is necessary and proactiveness is almost always necessary to promote high organizational performance. For this, three solutions (S) are sufficient: the presence of innovativeness and proactiveness (S1); the presence of innovativeness, risk-taking and strategic planning and budget (S2); and the absence of risk-taking, as well as strategic planning and budget (S3). Theoretical and Methodological Contributions: Theoretically, the findings add the budgetary perspective to the discussion on strategic planning, entrepreneurial orientation (EO) and performance. Relevance/originality: The study is relevant, as it permits the identification of the strategic planning and budget interface in detriment to EO elements, which is in accordance with the causal conditions that promote high performance. Social/management contributions: This study brings new meanings to the pertinence of the interface between entrepreneurial elements and the strategic planning and budget, highlighting possible configurations for organizations to reach a high performance level.

scholarly journals Entrepreneurial Orientation and Performance of Selected SMEs in Southeast, Nigeria

2021 ◽  
Vol 6 (4) ◽  
pp. 108-115
Author(s):  
Ifeanyi E. Nuel Okoli ◽  
Kanayo Chike Nwosu ◽  
Miracle Ejike Okechukwu
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Access To Finance ◽  
Customer Base ◽  
Simple Regression Analysis ◽  
And Performance ◽  
Medium Enterprises ◽  
Poor Infrastructure

This study examines the effect of entrepreneurial orientation on performance of selected small and medium scale enterprises (SMEs) in Southeast Nigeria. The problems that led to this study include, inadequate access to finance, poor infrastructure, inconsistency with government policy, poor support (business development work), inadequate sales, too many taxes and obsolete technologies leading to massive failures. It has not been found that the epileptic growth of SMEs in Southeast Nigeria is not only due to the problems but also from the entrepreneurial orientation. The survey research method was employed in this study and the study relied on secondary and primary data. The population of this study was drawn from SMEs in the five states in the Southeast Nigeria. The study was done using three hundred and sixty six small and medium enterprises (SMEs). Complete enumeration was adopted. Simple regression analysis was used to analysis the hypotheses. The study revealed that there is a significant positive relationship between pro-activeness, innovativeness and risk taking on performance of SMEs in Southeast Nigeria. The study concluded that entrepreneurial-oriented firms tend to lead the industry with innovations, performing things in a better approach to satisfy customers and give the firm a better leverage. The study recommends that SMEs owners and managers should be committed to process and radical innovation in their dealings so as to increase and expand their customer base.

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