scholarly journals Effect of Entrepreneurial Orientation and Family Involvement on Family Business Performance: Case Study in Hotel Business in Yogyakarta

2020 ◽  
Author(s):  
Erny Rachmawati ◽  
Pratiwi Suhartanti
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

ENTREPRENEURIAL ORIENTATION, PERFORMANCE AND THE MODERATING ROLE OF INSTITUTIONAL CAPITAL: A CASE STUDY OF FEMALE ENTREPRENEURS IN THAILAND

2019 ◽  
Vol 24 (02) ◽  
pp. 1950008
Author(s):  
CHONNATCHA KUNGWANSUPAPHAN ◽  
JIBON KUMAR SHARMA LEIHAOTHABAM
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Female Entrepreneurs ◽  
Policy Makers ◽  
Institutional Capital ◽  
The Relationship ◽  
Moderating Role

This study examines the relationship between entrepreneurial orientation of female entrepreneurs and business performance, and analyzes the moderating role of institutional capital on the entrepreneurial orientation-performance link. The results of the study highlight the important role of entrepreneurial orientation, including proactiveness, innovativeness and risk-taking, in directing business performance of female entrepreneurs and the complex interplay among entrepreneurial orientation variables. It also indicates that accessibility to institutional capital, through regulative, cognitive and normative dimensions, encourages female entrepreneurs to be more entrepreneurially oriented, thus leading to better business performance. In addition, this research proposes an integrated framework to guide policy makers on how institutional capital can play a crucial role in helping female entrepreneurs, stressing the importance of becoming entrepreneurial oriented and thus, achieving superior business performance.

scholarly journals Entrepreneurship Orientation as Antecedent of Family Business Performance

2020 ◽  
Vol 9 (1) ◽  
pp. 1-8
Author(s):  
Daniel Kurniawan
Keyword(s):  
Literature Review ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
The Other ◽  
Business Research ◽  
Interesting Issue ◽  
Purposive Sampling ◽  
The Family ◽  
Sample Technique

Abstract The performance of a family business has become an interesting issue on the family business research. On the other hand, how to achieve that goal is still arguable. Based on literature review, entrepreneurship orientation is one of the key predictors for family business performance. This study took sample of 201 medium family company in Surabaya. Purposive sampling is selected as sample technique. The findings of this study imply entrepreneurship orientation significantly positive correlate to family business performance. Keywords: entrepreneurial orientation, family business performance, family business

scholarly journals How social media practices shape family business performance: the wine industry case study

2021 ◽  
Author(s):  
Nora Obermayer ◽  
Edit Kővári ◽  
Jaana Leinonen ◽  
Gerda Bak ◽  
Marco Valeri
Keyword(s):  
Social Media ◽  
Family Business ◽  
Business Performance ◽  
Wine Industry ◽  
Media Practices

scholarly journals The effect of socioemotional wealth on the relationship between entrepreneurial orientation and family business performance

2020 ◽  
Vol 23 (3) ◽  
pp. 174-192
Author(s):  
Remedios Hernández-Linares ◽  
Franz W Kellermanns ◽  
María Concepción López-Fernández ◽  
Soumodip Sarkar
Keyword(s):  
Family Business ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Firms ◽  
Jel Classification ◽  
Moderating Effect ◽  
Socioemotional Wealth ◽  
Competitive Aggressiveness ◽  
The Relationship

This study examines how five key entrepreneurial orientation (EO) dimensions—risk taking, innovativeness, proactiveness, competitive aggressiveness, and autonomy—affect family business performance, as well as the moderating effect of socioemotional wealth (SEW) on these relationships. The findings, based on a sample of 609 Spanish and Portuguese family firms, reveal that not all EO dimensions are equally important for performance, as only proactiveness, competitive aggressiveness, and autonomy were significant. However, we also find that the EO–performance relationship is affected by concern for SEW preservation, as our SEW measure moderates risk taking positively and innovativeness negatively. JEL CLASSIFICATION: L20; L26; M10

I choose my business model! A cross-national analysis of business model choice in family firms

2016 ◽  
Vol 11 (2) ◽  
pp. 212-231 ◽  
Author(s):  
Elena Casprini ◽  
Simona D'Antone ◽  
Bernard Paranque ◽  
Tommaso Pucci ◽  
Lorenzo Zanni
Keyword(s):  
Business Model ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Content Type ◽  
Case Study Analysis ◽  
Multiple Case ◽  
National Analysis ◽  
Cross National

Purpose – Drawing on family-business and business model (BM) literature the purpose of this paper is to explore whether a relationship exists between the family involvement in the management (i.e. closed or mixed management) and BM choice. Design/methodology/approach – A multiple case study analysis of family-owned wineries in Chianti (Italy) and Côtes du Rhône (France) has been conducted. Findings – The analysis surprisingly reveals that no relationship exists between the BM ideal type chosen and the type of management composition. Rather, it seems that the choice of hiring non-family managers is dictated by the willingness to reinforce the BM chosen by the owner and that the role played by non-family managers is not revolutionary but reinforces the owner’s BM choice. The authors propose that the stewardship theory can contribute in explaining the findings. Originality/value – A twofold contribution is offered by this study: first, it links the strategic management research on BMs to family business (FB) research on corporate governance and specifically on the composition of management teams; second, it provides an empirical example of a cross-national comparative analysis on FBs using multiple case studies.

scholarly journals The contribution of familiness to the performance of family businesses

2004 ◽  
Vol 4 (1) ◽  
Author(s):  
W. P. Venter ◽  
S. Kruger
Keyword(s):  
Competitive Advantage ◽  
Conceptual Model ◽  
Family Involvement ◽  
Family Business ◽  
Business Performance ◽  
Family Businesses ◽  
Superior Performance ◽  
Unique Contribution ◽  
Family Capital ◽  
Long Run

While family businesses are known to consistently outperform non-family businesses in financial terms over the long run, family businesses have received comparatively little attention from researchers. In this article an explanation is offered for this superior performance in the form of the concept of "familiness" - the unique contribution that family involvement brings to any business (which is divided into founder capital and family capital). It is explained that family businesses possess no general competitive advantage over non-family businesses. The unique strength of successful family businesses does not lie in their espoused advantages, but in their ability to sustain and adapt, through family capital, the culture created by the founder. An evolutionary conceptual model of the creation and transmission of familiness is provided to explain how this unique strength influences family business performance over the long run.

scholarly journals Governance in Hungarian family businesses

2019 ◽  
Vol 3 (1) ◽  
pp. 7
Author(s):  
Attila Wieszt
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Business Performance ◽  
Large Scale ◽  
Geographical Location ◽  
Family Businesses ◽  
Computer Assisted ◽  
Governance System ◽  
The Family ◽  
Governance Practices

Aim: A large-scale, exploratory survey had been conducted on the whole population of family businesses in Hungary in 2017/18 concentrating on the heterogeneity of the family business population. This paper presents the findings of this survey focusing only on the governance practices of the Hungarian family businesses.Design / Research methods: Two questionnaires were asked from a sample of Hungarian family businesses in the form of a computer-assisted phone interview. This sample is based on probability sampling of a larger database representative to the Hungarian population of business organization in terms of annual revenue, geographical location and industry. Questions were formulated considering models of family involvement, socio-emotional wealth, succession, governance, and professionalization.Conclusions/findings: Hungarian family businesses succeed in involving a growing number of family members into the company which also positively relates to the business performance of the firms. The developmental patterns of their governance practices reflect their increasing level of professionalization.However, they can hardly involve external, non-family professionals into the Top Management Team, which may be crucial especially for the further growth of medium-sized firms. Their family governance concentrates rather on operatively bridging family and company, and not on planning the maintenance of long-term family control.Originality/value of the article: The paper delivers both informations on the heterogeneity of the Hungarian family businesses from a governance-related point of view, and show direct, practical implications regarding the family business governance system. Its results can be of interest both for family business owners, researchers, and consultants.

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