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Entrepreneurial orientation and innovation success in family firms

Author

Listed:
  • Daniel Jiménez-Jiménez
  • Raquel Sanz-Valle
  • Jose Alberto Perez-Caballero

Abstract

There is a general agreement that entrepreneurial orientation can significantly improve firms' performance, for both family and non-family firms. With regard to the relationship between entrepreneurial orientation and the family status of a firm, there is some controversy in the literature. Traditionally, family firms have been considered more conservative and risk-adverse than non-family firms and, therefore, with less entrepreneurial orientation. However, some recent studies show that family firms do also take risks. This paper analyses entrepreneurial orientation of family firms in comparison with non-family firms, and suggests that the relationship between entrepreneurial orientation and performance, in particular when it is measured as new products success, is higher for family firms than for non-family firms. Using a sample of 268 firms (family and non-family), this paper tests its hypotheses. Findings show that there are not differences between family firms and non-family firms regarding entrepreneurial orientation. More important, they provide support to our proposition that the family status positively moderates the link between entrepreneurial orientation and new products success.

Suggested Citation

  • Daniel Jiménez-Jiménez & Raquel Sanz-Valle & Jose Alberto Perez-Caballero, 2020. "Entrepreneurial orientation and innovation success in family firms," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 40(1), pages 114-127.
    • Handle: RePEc:ids:ijesbu:v:40:y:2020:i:1:p:114-127
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