Family firm performance: The influence of entrepreneurial orientation and absorptive capacity

This article investigates the influence of entrepreneurial orientation and absorptive capacity on family firm performance. Partial least squares structural equation modeling (PLS‐SEM) was used to analyze empirical data for 218 Spanish family firms. Absorptive capacity positively mediated the relatio...

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Bibliographic Details
Published inPsychology & marketing Vol. 34; no. 11; pp. 1057 - 1068
Main Authors Hernández‐Perlines, Felipe, Moreno‐García, Juan, Yáñez‐Araque, Benito
Format Journal Article
LanguageEnglish
Published Hoboken Wiley Periodicals Inc 01.11.2017
Subjects
Absorptive capacity
Captive insurance
entrepreneurial orientation
Entrepreneurs
family firm
Family owned businesses
firm performance
Market orientation
mediating effect
PLS
Risk sharing
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Summary:This article investigates the influence of entrepreneurial orientation and absorptive capacity on family firm performance. Partial least squares structural equation modeling (PLS‐SEM) was used to analyze empirical data for 218 Spanish family firms. Absorptive capacity positively mediated the relationship between entrepreneurial orientation and family firm performance. This total mediation effect suppressed the direct effect of entrepreneurial orientation on family firm performance. A major implication of this finding is that for family firms to improve their performance through entrepreneurial orientation, absorptive capacity must act as a mediator.
ISSN:0742-6046
1520-6793
DOI:10.1002/mar.21045