Affective and Emotional Determinants of Entrepreneurial Orientation Within Family Firms

2022 ◽  
pp. 794-818
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.

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.

The impact of a crisis on entrepreneurial orientation of family firms: The role of organisational decline and generational change

2021 ◽  
pp. 026624262110366
Author(s):  
Ana M Moreno-Menéndez ◽  
Unai Arzubiaga ◽  
Vanessa Díaz-Moriana ◽  
José C Casillas
Keyword(s):  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Theory And Practice ◽  
Stability And Convergence ◽  
Generational Change ◽  
Entrepreneurial Behaviour ◽  
Temporal Aspects ◽  
Alternative Hypotheses ◽  
The Impact

This article critically analyses entrepreneurial orientation (EO) in family firms after a major crisis, to investigate how firms with equal initial levels of EO reach different levels over time. Based on two alternative hypotheses (stability and convergence), we analysed whether the EO of family firms remains intact, strengthens, or weakens after a crisis. Based on an examination of a database of 151 family firms collected in 2004 and 2017, our findings reveal that compared to firms with higher pre-crisis EO levels, those with lower levels saw a larger increase post crisis. Furthermore, unlike the latter group, the former was able to maintain high pre-crisis levels even after the crisis. In addition, we also we found this relationship between pre-crisis and post-crisis EO levels to be influenced by two key periodic discontinuities, namely, organisational decline and generational change contingencies. These findings advance our understanding of temporal aspects of EO and heterogeneous entrepreneurial behaviour among family firms with significant implications for both theory and practice.

Entrepreneurial Orientation in Family Firms: Looking at a European Outermost Region

2017 ◽  
Vol 25 (04) ◽  
pp. 441-460 ◽  
Author(s):  
Duarte Pimentel ◽  
João Pedro Couto ◽  
Marc Scholten
Keyword(s):  
Family Business ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Three Dimensions ◽  
Current Debate ◽  
Family Participation ◽  
Autonomous Region ◽  
Business Context ◽  
The Family ◽  
A Current

This study addresses a current debate in the family business literature involving the extent to which the family business context hinders or promotes entrepreneurial behavior. The empirical evidence is provided by 155 small-sized firms, 82 family-controlled and 73 nonfamily-controlled, operating in an outermost region, the Autonomous Region of the Azores. This study analyzes the differences between family and nonfamily firms in regard to entrepreneurial orientation and how it is influenced by family participation. Results show that there are differences in entrepreneurship orientation and in two of its three dimensions, while revealing that family participation is negatively associated with entrepreneurial orientation and its three dimensions.

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.

scholarly journals Long-Term Orientation as a Resource for Entrepreneurial Orientation in Private Family Firms: The Need for Participative Decision Making

2020 ◽  
Vol 12 (13) ◽  
pp. 5334
Author(s):  
Jelle Schepers ◽  
Wim Voordeckers ◽  
Tensie Steijvers ◽  
Eddy Laveren
Keyword(s):  
Decision Making ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Empirical Support ◽  
Positive Association ◽  
Firm Level ◽  
Central Hypothesis ◽  
Using Data ◽  
Entrepreneurial Activities

Building on the resource-based view (RBV) of the firm, this paper suggests that a family firm’s long-term orientation (LTO) can be an important resource that increases firm-level entrepreneurial orientation (EO). Nevertheless, resource orchestration suggests that managers need to orchestrate their resources in order to realize any potential advantage. Therefore, we hypothesize that a family firm’s LTO entails potential resources to engage in entrepreneurial activities, while a participative decision making (PDM) style serves as coordinating mechanism that helps the firm to manage these resources. Using data from 209 private family firms, the results show a positive association between LTO and EO. Also, PDM was found to positively moderate the LTO-EO relationship, providing empirical support for our central hypothesis.

scholarly journals Familiness and socioemotional wealth in Spanish family firms: An empirical examination

2017 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Ismael Barros ◽  
Juan Hernangómez ◽  
Natalia Martin-Cruz
Keyword(s):  
Organizational Effectiveness ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Influence ◽  
Socioemotional Wealth ◽  
Empirical Examination ◽  
The Family ◽  
Spanish Family ◽  
The Impact

The socioemotional wealth (SEW) related to emotional endowments accumulated in the business by the family, is one of the most important features that differentiate the family firms of other organizations. However, there are few studies developed in the context of the antecedents and consequences of the building and use of SEW in the family business. Therefore, this study, using a sample of Spanish family firms that are non-publicly traded, explains how family influence affects the building and use of SEW and, thus, the organizational effectiveness of the family firm. The results indicate mixed results regarding the impact of the family involvement on the essence. Those suggest a positive relationship between building and use of SEW and organizational effectiveness of the family business.

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.

Sign in / Sign up

Export Citation Format

Share Document