Entrepreneurial orientation and performance in private family firms: A configurational model

Abstract

The relationship between entrepreneurial orientation (EO) and performance has received considerable attention from the family business literature. However, little is known about how EO, organizational parameters, and environmental characteristics act in combination to influence family firm performance. Drawing on the socioemotional wealth perspective, this study proposes a configurational model that considers the performance implications of EO, family management, and environmental dynamism. The empirical analysis indicates that the combination of family management, low EO, and low environmental dynamism engenders the best performance. The paper contributes to the family entrepreneurship literature by identifying the conditions under which EO leads to improved performance in family firms, and answers a recent call for more context‐based investigations of the performance effects of family managers. © 2018 ASAC. Published by John Wiley & Sons, Ltd.

Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries

“…Empirical research confirms the above and suggests that EO's impact on business performance is stronger in a highly dynamic, uncertain, and hostile environment (Morić Milovanović et al 2021a;Bauweraerts 2018;Chirico and Bau' 2014;Wiklund and Shepherd 2005). Furthermore, Zahra (1993) found a negative relationship linking entrepreneurship and performance in the context of firms operating in solid and more predictable environments.…”

“…Furthermore, Zahra (1993) found a negative relationship linking entrepreneurship and performance in the context of firms operating in solid and more predictable environments. Bauweraerts (2018), in the empirical setting of private family firms, suggested that the best fit between family management, entrepreneurial orientation, and performance is achieved in conditions when EO and environmental dynamism are low. Entrepreneurial behavior entails very risky activities, requiring the investment of significant financial and other resources, a willingness to make changes, and an appropriate response.…”

Entrepreneurial orientation, entrepreneurial competencies, innovation, and performances in SMEs of Pakistan: Moderating role of social ties

“…In the entrepreneurship literature, entrepreneurial orientation has emerged as an essential construct for studying different outcomes, such as innovative work behavior and performance (Bauweraerts, 2019; Covin & Wales, 2018). Miller (1983) proposed three dimensions of entrepreneurial orientation: risk‐taking, proactiveness, and innovativeness.…”

Entrepreneurial Orientation, Strategic Networking, and Croatian SMEs Performance: A Configurational Approach

“…Businesses can capture new opportunities by using these characteristics, outperforming their competition and producing better performance (Zahra et al, 1995). Entrepreneurship research suggests a positive relationship between EO and small firm performance (Zahra, 1991;Zahra et al, 1995;Wiklund, 1999;Wiklund et al, 2005;Bauweraerts, 2019;Jiang et al, 2018;Kohtamaki et al, 2019), as a firm's entrepreneurial behavior unequivocally results in a financial increase (Miller, 1986;Lumpkin et al, 1996;Wiklund et al, 2005).…”

“…The first is a two-way interaction by using contingency models. This interaction can be between EO and the external environment (Covin et al, 1989;Zahra et al, 1995;Wiklund et al, 2005;Frank et al, 2010;Lee et al, 2013;Bauweraerts, 2019) or between EO and the organization's internal characteristics (March et al, 1963;Zahra, 1991). The second assessment option is a three-way interaction using a configurational approach, which allows for the concurrent assessment of EO and internal and external environments (Wiklund et al, 2005).…”