Autonomy and family business performance: The joint effect of environmental dynamism and national culture

Abstract

Building on the entrepreneurial orientation (EO) literature, we investigate the relationship between family firm performance and autonomy, a key EO dimension. To enhance the understanding of the role of autonomy, we compare the joint impact of environmental dynamism and national cultural context (performance-based vs socially supportive cultures) on the autonomy–performance relationship of family firms in the United States and Taiwan. Using a configurational approach and data from 130 family firms (53 in the US and 77 in Taiwan), we found that in dynamic environments, autonomy is associated with improved performance in the United States, while in Taiwan, firms in dynamic environments fared worse with increasing autonomy. We discuss the implications of these findings and provide recommendations for future research.

The Development of MSMEs International Networks through Internationalization

“…In other words, MSMEs are unable to cope with product change requested by dynamic market. This confirms the finding that the bigger the company is, the more adaptive it is to cope with dynamic environment (Yu, Lumpkin, Parboteeah, and Stambaugh, 2019). The research shows that highly dynamic environment may negatively influence company"s performance (Davis, Eisenhardt, and Bingham, 2009).…”

Entrepreneurial orientation dimension affects firm performance: A perspective from the Malaysian furniture industry

“…The empirical discoveries associated with autonomy, namely entrepreneurial orientation dimension, result, and conclusion appear to be inconsistent in the study by Yu, Lumpkin, Praveen Parboteeah, and Stambaugh (2019). Chen, Neubaum, Reilly, and Lynn (2014) and Jancenelle, Storrud-Barnes, and Javalgi (2017) show a positive correlation among autonomy and firm performance.…”

“…Competitive aggressiveness is considered to be an establishment's ability to execute superior strength than opponents (Yu et al, 2019;Kuivalainen, Sundqvist, & Cadogan, 2010). It is categorised as a positive response to modest threats (Rauch et al, 2009) and competitive behaviour (Lyon et al, 2000).…”

“…Although Lumpkin and Dess (2001) find no significant direct correlation between competitive aggressiveness and firm performance. However, some studies speculate that there is a relationship between competitive aggressiveness and organisational performance -especially internationally -and this dimension still exists and is considered an active element of EO (Yu et al, 2019;Kuivalainen et al, 2010). In a meta-analysis on competitive aggressiveness with regard to firm performance, Hughes-Morgan, Kolev, and Mcnamara (2018) find that there is a positive correlation among these variables.…”

Business Environment: Designing and Explaining the New Environmental Dynamism Model in Pharmacies

“…Research regarding the dynamics of the business environment has revealed the sporadic factors that are involved in the business environment dynamism. Miller and Friesen developed a five-item scale for environmental dynamism (9), which has been adopted by several authors (10,11). Furthermore, Achrol and Stern have developed a questionnaire with four items to describe the extent of changes/variability in the membership in electronic mar-ketplaces, competitive behavior, customer behavior, and technical knowledge base (12).…”