Family involvement, firm performance and the mediating role of entrepreneurial orientation: a meta-analytic approach

PurposeDrawing on the resource-based view and resource orchestration perspectives, this paper aims to investigate how different forms of family involvement influence entrepreneurial orientation (EO) and financial performance (FP) in family firms.Design/methodology/approachThe study uses meta-analytic structural equation modelling on a sample of 89 primary studies.FindingsThe results show that family ownership concentration and generational involvement positively affect EO, which in turn mediates their positive effects on FP. Conversely, although a higher number of family managers has a positive direct relationship with FP, this is offset by a negative indirect effect through EO, resulting in no significant total effect. Finally, while having a family chief executive officer is positively related to FP, it does not significantly influence EO.Practical implicationsFamily firm owners should develop EO to mobilise familiness for superior performance, rather than relying solely on the possession of a bundle of family business-specific resources and capabilities. Involving nonfamily managers and considering professionalisation can counteract managerial homogeneity of purely family management while preserving family control. Moreover, fostering an entrepreneurial mindset through multigenerational involvement helps sustain EO across generations.Originality/valueThe findings highlight the paradoxical nature of familiness, demonstrating both its bright and dark sides in the family entrepreneurship context. This study provides empirical evidence that familiness alone is not a sufficient condition for the competitive advantage of a family firm. To leverage familiness effectively, firms must develop strategic processes that enable the orchestration of family resources and capabilities through EO.