Entrepreneurial Orientation, Family Involvement and Growth of New Family Ventures

Abstract

Abstract:

This study focuses on the entrepreneurial orientation (EO) of new family ventures. Based on the framework of the relationship between EO and firm performance, this paper empirically studies the influence of EO on firm growth, using a sample of 407 new family ventures in Beijing-Tianjin-Hebei region. The result indicates that EO has a positive effect on the growth of new family ventures. Moreover, this study uses the theory of socioemotional wealth to construct the theoretical logic of the influence of family involvement (FI) on the relationship between EO and growth, and then conducts an empirical test. The results also show that family involvement negatively moderates the relationships between EO and growth, in such a way that a firm's EO will have less intense influence on growth when family involvement is higher. Specifically, a firm's proactiveness is positively related to its growth, and FI negatively moderates the relationship between innovativeness and growth and the relationship between risk-taking and growth. Based on above conclusions, this study also provides some management implications for new family ventures and entrepreneurs.

Key words: EO, firm growth, family involvement, new family ventures

Liu Xiaoyuan, Lin Song, Li Hanjun. Entrepreneurial Orientation, Family Involvement and Growth of New Family Ventures[J]. , 2017, 29(10): 42-57.

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