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Strategic posture and performance: Revealing differences between family and nonfamily firms

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  • Madison, Kristen
  • Runyan, Rodney C.
  • Swinney, Jane L.

Abstract

We investigate two strategic postures, entrepreneurial orientation (EO) and small business orientation (SBO), and their relationships with firm performance, revealing significant differences between family and nonfamily firms. We examine EO and SBO in 377 small businesses, finding that EO has a greater impact on the performance of nonfamily firms, whereas SBO drives the performance of family firms. Contrary to research suggesting that family firms should behave more entrepreneurially, our results indicate that this behaviour has no significant effect on family firm performance. Rather, increased performance is found in family firms that adopt a small business strategic orientation.

Suggested Citation

  • Madison, Kristen & Runyan, Rodney C. & Swinney, Jane L., 2014. "Strategic posture and performance: Revealing differences between family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 239-251.
  • Handle: RePEc:eee:fambus:v:5:y:2014:i:3:p:239-251
    DOI: 10.1016/j.jfbs.2013.11.006
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    References listed on IDEAS

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    Cited by:

    1. Randolph, Robert V. & Alexander, Benjamin N. & Debicki, Bart J. & Zajkowski, Robert, 2019. "Untangling non-economic objectives in family & non-family SMEs: A goal systems approach," Journal of Business Research, Elsevier, vol. 98(C), pages 317-327.
    2. Antonio L. Leal-Rodríguez & Gema Albort-Morant & Silvia Martelo-Landroguez, 2017. "Links between entrepreneurial culture, innovation, and performance: The moderating role of family firms," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 819-835, September.
    3. Jonathan Bauweraerts, 2016. "How Do Family Firms Manage Risky Situations? An Organizational Resilience Perspective," International Business Research, Canadian Center of Science and Education, vol. 9(5), pages 1-10, May.
    4. Antonio L. Leal-Rodríguez & Gema Albort-Morant & Silvia Martelo-Landroguez, 0. "Links between entrepreneurial culture, innovation, and performance: The moderating role of family firms," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-17.
    5. Basco, Rodrigo & Hernández-Perlines, Felipe & Rodríguez-García, María, 2020. "The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain," Journal of Business Research, Elsevier, vol. 113(C), pages 409-421.
    6. Lee, Tingko & Chu, Wenyi, 2017. "The relationship between entrepreneurial orientation and firm performance: Influence of family governance," Journal of Family Business Strategy, Elsevier, vol. 8(4), pages 213-223.
    7. Hernández-Linares, Remedios & Kellermanns, Franz W. & López-Fernández, María Concepción, 2018. "A note on the relationships between learning, market, and entrepreneurial orientations in family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 9(3), pages 192-204.

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