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Firm Growth in Family Businesses—The Role of Entrepreneurial Orientation and the Entrepreneurial Activity

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  • Pekka Stenholm
  • Tommi Pukkinen
  • Jarna Heinonen

Abstract

Previous studies show that growth is an important goal for businesses, but little is known of how the entrepreneurial orientation–performance relationship works in family businesses and how this differs from their nonfamily peers. We examine that and how entrepreneurial activity mediates the relationship in family and nonfamily businesses. Our results on 532 firms show that family businesses benefit from innovative orientation, which is both directly and indirectly associated with firm growth via entrepreneurial activity. This association does not exist in nonfamily businesses. Furthermore, risk taking does not influence family business growth even if it does in nonfamily businesses.

Suggested Citation

  • Pekka Stenholm & Tommi Pukkinen & Jarna Heinonen, 2016. "Firm Growth in Family Businesses—The Role of Entrepreneurial Orientation and the Entrepreneurial Activity," Journal of Small Business Management, Taylor & Francis Journals, vol. 54(2), pages 697-713, April.
    • Handle: RePEc:taf:ujbmxx:v:54:y:2016:i:2:p:697-713
    DOI: 10.1111/jsbm.12166
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    Cited by:

    1. Wu, Hangyao & Xu, Zeshui & Skare, Marinko, 2022. "How do family businesses adapt to the rapid pace of globalization? a bibliometric analysis," Journal of Business Research, Elsevier, vol. 153(C), pages 59-74.
    2. María J. Martínez-Romero & Julio Diéguez-Soto & Pieter Vandekerkhof, 2023. "Enlightening the influence of family TMT involvement on firm growth and degrowth rates," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 581-610, September.
    3. Asef Karimi & Mahmood Ahmadpour Daryani & Soma Rahmani, 2021. "The influence of entrepreneurial orientation on firm growth among Iranian agricultural SMEs: the mediation role of entrepreneurial leadership and market orientation," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 519-531, December.

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