To read the full version of this content please select one of the options below:

What kind of firm do you owner-manage? An institutional logics perspective of individuals’ reasons for becoming an entrepreneur

Rodrigo Basco (Sheikh Saoud Bin Khalid Bin Khalid Al-Qassimi Chair in Family Business, American University of Sharjah, Sharjah, United Arab Emirates)

Journal of Family Business Management

ISSN: 2043-6238

Article publication date: 2 April 2019

Issue publication date: 16 August 2019

Abstract

Purpose

The purpose of this paper is to compare the post-entry firm behavior of firms owner-managed by entrepreneurs who entered for family-oriented vs opportunity-oriented reasons.

Design/methodology/approach

Using the institutional logics perspective, the author argues that firms under the influence of opportunity-oriented or family-oriented owner-managers may differ in their internal practices, purpose, strategies, and performance. The author follows an inductive research methodology strategy by performing multivariate analyses with a sample of 1,733 Chilean firms to explore the preliminary conjectures.

Findings

Firms owner-managed by entrepreneurs who entered for a family-oriented reason finance their investment with firm resources, are less dependent on one customer and are willing to put forth less innovation effort than firms owner-managed by entrepreneurs who entered for an opportunity-oriented reason. No differences were found in terms of employee productivity. Additionally, the results show that young firms owner-managed by opportunity-oriented entrepreneurs have higher growth ratios than young firms owner-managed by family-oriented entrepreneurs. Inversely, old firms owner-managed by entrepreneurs who entered for an opportunity-oriented reason grow much less than old firms owner-managed by entrepreneurs who entered for a family-oriented reason.

Originality/value

This paper contributes to the literature at the intersection of family business and entrepreneurship by addressing the calls made by Aldrich and Cliff (2003) and Discua Cruz and Basco (2018) to better understand the family’s influence on entrepreneurship.

Keywords

Citation

Basco, R. (2019), "What kind of firm do you owner-manage? An institutional logics perspective of individuals’ reasons for becoming an entrepreneur", Journal of Family Business Management, Vol. 9 No. 3, pp. 297-318. https://doi.org/10.1108/JFBM-09-2018-0032

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited