Violence and family firms performance: the mediating role of entrepreneurial orientation

Research shows that context is relevant to understand the relationship between entrepreneurial orientation and firm performance. One context is the institutional environment. This research contributes to the literature by analysing how aspects of the level of societal safety and security affect financial performance in family firms through the mediating effect of entrepreneurial orientation. In our study, the Global Peace Index is used to measure the level of societal safety and security. In addition to the Global Peace Index, we used the Successful Transgenerational Entrepreneurship Practice Survey for information on entrepreneurial orientation and financial performance in family firms. Our analysis employed the structural equation modelling methodology. In high-income countries, our results indicate that entrepreneurial orientation does not play a significant mediating role between violence and family firms' performance. In contrast, for middle-income countries, the results show that entrepreneurial orientation mediates the relationship between violence and the financial performance of family firms.