Firm Growth in Family Businesses-The Role of Entrepreneurial Orientation and the Entrepreneurial Activity

2015 ◽  
Vol 54 (2) ◽  
pp. 697-713 ◽  
Author(s):  
Pekka Stenholm ◽  
Tommi Pukkinen ◽  
Jarna Heinonen
Keyword(s):  
Entrepreneurial Orientation ◽  
Firm Growth ◽  
Family Businesses ◽  
Entrepreneurial Activity

scholarly journals How Does Entrepreneurial Orientation Influence the Sustainable Growth of SMEs? The Role of Relative Performance

2019 ◽  
Vol 11 (19) ◽  
pp. 5178 ◽  
Author(s):  
Chiho Ok ◽  
He Soung Ahn
Keyword(s):  
Boundary Condition ◽  
Performance Feedback ◽  
Entrepreneurial Orientation ◽  
Firm Growth ◽  
Growth Patterns ◽  
Sustainable Growth ◽  
Relative Performance ◽  
Past Performance ◽  
The Relationship

The answer to the question, “Which factors determine the sustainable growth of small- and medium-sized enterprises (SMEs)?” is still fragmented. While previous studies have paid attention to a firm’s entrepreneurial orientation (EO) as a key driver of SME growth, it is often overlooked that contextual factors can be crucial in order for EO to be effective in yielding sustainable growth in SMEs. This paper focuses on the role of relative performance as a boundary condition in the relationship between EO and sustainable growth of SMEs. We predict that the effect of EO on SMEs’ sustainable growth would differ depending on performance feedback based on their past performance. Our empirical analysis based on panel analysis shows that SMEs strongly pursue sales growth immediately after they achieve lower levels of performance than historical aspiration. However, when their performance goes beyond the historical aspiration level, their growth patterns appear to show a different pattern depending on their level of EO. SMEs with greater EO are more likely to pursue firm growth when performance is above historical aspirations while those with lesser EO are not. Our findings suggest that relative performance is an important boundary condition in the relationship between EO and SMEs’ sustainable growth.

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.

scholarly journals The Role of Geographical Area and Entrepreneurs' Personality

2021 ◽  
Vol 12 ◽  
Author(s):  
Amaia Yurrebaso ◽  
Eva María Picado ◽  
Teresa Paiva
Keyword(s):  
Personality Traits ◽  
Entrepreneurial Orientation ◽  
Geographical Area ◽  
Geographical Location ◽  
Central Zone ◽  
Entrepreneurial Intention ◽  
Entrepreneurial Intentions ◽  
Entrepreneurial Activity ◽  
Five Dimensions

This study proposed a line of research on entrepreneurship based on the analysis of personality traits and geographical area. Its objective is to identify whether certain personality traits or sociocultural variables typical of a particular geographical area influence those who have already started an entrepreneurial activity to keep it up, in other words, to maintain their entrepreneurial intention. The research results reach a sample of 479 entrepreneurs from two Iberian Peninsula geographical areas. The analyse of the psychometric properties on the Entrepreneurial Orientation Questionnaire (EOQ) identified five dimensions of the enterprising personality. They also evidence that geographical location is a factor that contributes to the development of the entrepreneurial intentions that determine the business profile. The results show that entrepreneurs in the northern area tend to maintain their business than those in the central zone.

The Role of Management Capabilities on Entrepreneurial Orientation and Firm Growth Relationship

2017 ◽  
Vol 23 (4) ◽  
pp. 3013-3015
Author(s):  
Musli Sahimi ◽  
Adriana Mohd. Rizal ◽  
Maizaitulaidawati Md Husin ◽  
Suzilawati Kamarudin
Keyword(s):  
Entrepreneurial Orientation ◽  
Firm Growth ◽  
Management Capabilities

scholarly journals THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND PRODUCT DEVELOPMENT PERFORMANCE IN FAMILY BUSINESS LOCATED IN JAVA AND BALI: THE MODERATING ROLE OF NETWORKING CAPABILITY AND ENVIRONMENTAL DYNAMISM

2020 ◽  
Vol 5 (21) ◽  
pp. 52-73
Author(s):  
Carolina Novi Mustikarini ◽  
Christina Yanita Setyawati
Keyword(s):  
Product Development ◽  
Entrepreneurial Orientation ◽  
Family Businesses ◽  
Strategic Orientation ◽  
Product Performance ◽  
Service Development ◽  
Environmental Dynamism ◽  
Product Service ◽  
A Company

Product Development Performance (PDP) has an important role to achieve the competitive advantage of the company so that the managerial role is a major factor that can contribute to the success of product development. One of the important factors for understanding Product Development Performance is how a corporate applied the strategic corporate orientation optimally. Strategic orientation can be interpreted as a strategic direction that is determined to be applied by a company as a means of creating the right behaviour in achieving sustainable superior business performance. In this research, we focused in Entrepreneurial Orientation that has been developed in family businesses. Strategic orientation became an important antecedent in enhancing the development of product performance (PDP) because some researchers stated a deeper understanding related to the role of Entrepreneurial Orientation (EO) is needed especially in family businesses. The development of product performance is also supported by other factors, they are Network Capability and Environmental Dynamism. These findings explained that entrepreneurial orientation has a significant positive effect on product development performance when a company has adequate networking capability to manage environmental dynamics. Therefore, this study is focused on looking at the effect of Entrepreneurial Orientation on Product Development Performance with Networking Capability and Environment Dynamic as moderating. The research approach taken is quantitative research, which used data presented in the form of numbers or numerical information. The population in this research is family businesses that are located in Java and Bali, Indonesia and the number is unknown. This study found that family businesses have entered the survival phase have a long-term entrepreneurial orientation, which means that they are able to manage opportunities innovatively by being more proactive in all conditions, and it has an effect on the performance of product/service development. The networking capability has opportunities as an antecedent that can affect the performance of product/service development while environmental dynamism is only a potential moderator.

Entrepreneurial activity in the Albertine Graben region of Uganda: the role of infrastructure development and entrepreneurial orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammed Ngoma ◽  
Peter Dithan Ntale ◽  
Mwesigye Castro
Keyword(s):  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Quantitative Data ◽  
Self Report ◽  
Entrepreneurial Activity ◽  
Hierarchical Regression ◽  
Infrastructure Development ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper is twofold (1) to establish the relationship between infrastructure development and entrepreneurial orientation (EO) on the entrepreneurial activities in the Albertine Graben region of Uganda and (2) to establish whether entrepreneurial orientation mediates the relationship between infrastructure development and entrepreneurial activity.Design/methodology/approachQuantitative data were collected from a sample of 118 enterprises, mainly small businesses. The authors sent out 118 self-administered questionnaires of which 93 useable questionnaires were returned, giving a response rate of 79%. Quantitative data were processed and analyzed using SPSS version 21. Analyses such as correlation, hierarchical regression and mediation were carried out to understand (1) the relationship between the variables, (2) the prediction potential of the independent variables to entrepreneurial activity and (3) the mediation role of EO on the relationship between infrastructure activity and business performance.FindingsThe authors found out that infrastructure developments are a significant predictor of entrepreneurial activity (ß = 0.432**, p < 0.01), explaining 21.6% of entrepreneurial activity in the region. EO was found to have a significant positive relationship with entrepreneurial activity (r = 0.580**, p < 0.01). The results of a hierarchical regression indicate that both infrastructure development and EO explain 42% of the entrepreneurial activity in the Albertine region. Mediation analysis indicated that EO is a partial mediator in the relationship between infrastructure development and entrepreneurial activity.Research limitations/implicationsThe results are based on self-report statistics. The model explains 42% of entrepreneurial activity thus there is need to examine the influence of other factors which contribute the 58% to entrepreneurial activity. The study was also limited to public infrastructure, with much attention on transportation (roads) and energy (electricity). Future studies can consider looking at private infrastructure as well.Practical implicationsUnderstanding the role of infrastructure development and EO helps government and other development partners to know the type, quantity and quality of the infrastructure required as well as how to grow the EO of entrepreneurs to boost entrepreneurial activity in the region.Originality/valueThis paper provides insights into our understanding of the relationship between infrastructure development, entrepreneurial orientation and entrepreneurial activity using evidence from Uganda’s oil rich region. The originality of this paper further lies in the discovery of the partial mediation of entrepreneurial orientation in the relationship between infrastructure development and entrepreneurial activity. This is the first time such a study is conducted in an African developing country such as Uganda whose oil exploration activities are still in their infancy.

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