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Entrepreneurial Orientation and Family Firm Performance: The Moderating Role of TMT Identity-Based and Knowledge-Based Faultlines

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  • Andrea Calabrò
  • Rosalia Santulli
  • Mariateresa Torchia
  • Carmen Gallucci

Abstract

Research has shown that entrepreneurial orientation (EO) is positively associated with performance, but several context-specific features and contingencies affect this relationship. Accordingly, this article focuses on the specific context of family firms (FFs) and introduces top management team (TMT) faultlines as moderators. The main findings, obtained on a sample of 111 medium- and large-sized FFs, suggest that strong identity-based faultlines (IBFs) negatively moderate the EO–FF performance relationship, even within TMTs that are comprised only of family members, which are often viewed as homogeneous teams. Conversely, strong knowledge-based faultlines (KBFs) amplify the positive effect of EO on FF performance.

Suggested Citation

  • Andrea Calabrò & Rosalia Santulli & Mariateresa Torchia & Carmen Gallucci, 2021. "Entrepreneurial Orientation and Family Firm Performance: The Moderating Role of TMT Identity-Based and Knowledge-Based Faultlines," Entrepreneurship Theory and Practice, , vol. 45(4), pages 838-866, July.
    • Handle: RePEc:sae:entthe:v:45:y:2021:i:4:p:838-866
    DOI: 10.1177/1042258720973997
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    2. Ruben Werven, 2024. "Entrepreneurship in religious organizations: How the Church of England developed an entrepreneurial orientation," Small Business Economics, Springer, vol. 62(4), pages 1361-1382, April.

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