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Article
Publication date: 12 November 2020

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

Erny Rachmawati, Suliyanto and Agus Suroso

This study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a…

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Abstract

Purpose

This study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.

Design/methodology/approach

A total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.

Findings

The results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.

Research limitations/implications

The results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.

Practical implications

This finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.

Social implications

Research findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.

Originality/value

The results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JFBM-07-2020-0064
ISSN: 2043-6238

Keywords

  • Entrepreneurial orientation
  • Family involvement
  • Gender
  • Family business performance

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Article
Publication date: 8 June 2020

Understanding early-stage firm performance: the explanatory role of individual and firm level factors

Pi-Shen Seet, Noel Lindsay and Fredric Kropp

This study presents and validates a theoretical model linking individual characteristics of the founding or lead innovative entrepreneur of a start-up venture – the…

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Abstract

Purpose

This study presents and validates a theoretical model linking individual characteristics of the founding or lead innovative entrepreneur of a start-up venture – the entrepreneur's values, entrepreneurial attitudes and entrepreneurial self-efficacy – to the firm's entrepreneurial orientation (EO) and market orientation (MO) and, ultimately, to firm performance.

Design/methodology/approach

We conducted a survey on a stratified random sample of founders of early-stage South Australian micro- and small enterprises with a response rate of 24% (N = 204). Structural equation modelling was used to evaluate the model.

Findings

The study found that there is a significant relationship between the individual lead entrepreneur and firm strategies developed in early-stage firms in explaining firm performance. It also found that internal values are positively related to entrepreneurial attitude. Entrepreneurial attitude is positively related to entrepreneurial self-efficacy and EO innovativeness. In turn, entrepreneurial self-efficacy is related to innovativeness, proactiveness and risk-taking. The proactiveness dimension of EO and entrepreneurial attitude is related to MO. Entrepreneurial self-efficacy, innovativeness and MO are related to firm performance.

Research limitations/implications

This research was limited to entrepreneurial ventures in South Australia and may lack generalisability in other states and countries.

Originality/value

The research contributes to the understanding of the heterogeneity within self-employed individuals, in particular among innovative entrepreneurs, by expanding insights regarding antecedents and consequences of the entrepreneurial process. It develops insights into the links of individual-level constructs with firm-level constructs to develop a more meaningful understanding of new venture creation and performance. It enhances our knowledge of the heterogeneity within the group of self-employed by exploring the individual entrepreneurial antecedents of performance in early-stage firms.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/IJM-02-2019-0112
ISSN: 0143-7720

Keywords

  • Self-employment
  • Antecedents
  • Consequences
  • Early-stage ventures
  • Values
  • Entrepreneurial attitude
  • Entrepreneurial self-efficacy
  • Entrepreneurial orientation
  • Market orientation
  • Firm performance

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Article
Publication date: 21 June 2020

Putting the entrepreneur back into entrepreneurial ecosystems

Andrei Alexander Lux, Flávio Romero Macau and Kerry Ann Brown

This paper extends entrepreneurial ecosystems theory by testing how aspects of the local business environment affect individual entrepreneurs' ability to translate their…

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Abstract

Purpose

This paper extends entrepreneurial ecosystems theory by testing how aspects of the local business environment affect individual entrepreneurs' ability to translate their personal resources into firm performance.

Design/methodology/approach

Data were collected from 223 business owners across Australia. Moderation hypotheses were tested using multiple hierarchical regression and confirmed with the Preacher and Hayes (2004) bootstrapping method.

Findings

The results show that business owners' psychological capital, social capital and entrepreneurial education directly affect their individual firm performance. These positive relations are moderated by specific aspects of the business environment, such that they are stronger when the environment is more favorable.

Originality/value

This study puts individual business owners back into entrepreneurial ecosystems theory and explains how they can make the most of their personal resources, suggesting a complex interplay where one size does not fit all. Far-reaching practical implications for policymakers are discussed.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 26 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/IJEBR-01-2020-0031
ISSN: 1355-2554

Keywords

  • Entrepreneurship
  • Entrepreneurial ecosystem
  • Psychological capital
  • Social capital
  • Entrepreneurial education
  • Human capital
  • Firm performance
  • Ecological systems theory

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Article
Publication date: 5 May 2020

Revisiting entrepreneurial capabilities and export market orientation: a multi-scale investigation in an emerging economy

Anisur R. Faroque, Md Imtiaz Mostafiz, Mohammad Omar Faruq and Mohammad Fuad Bin Bashar

The study aims to bridge entrepreneurial capability, export market orientation and the international performance of international new ventures (INVs). Thus, multi-scale…

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Abstract

Purpose

The study aims to bridge entrepreneurial capability, export market orientation and the international performance of international new ventures (INVs). Thus, multi-scale entrepreneurial capabilities have been adopted to provide more profound insights into the literature on early internationalisation. Since little is known about the antecedents of export market orientation, the performance outcome of this is ambiguous. This study aims to enhance knowledge in this pressing research area.

Design/methodology/approach

The sample of this study consists of data (354 firms) from INVs operating in the apparel industry of an emerging economy, namely, Bangladesh. Structural equation modelling has been used to investigate the hypothesised relationships.

Findings

For the Deshpandé and Farley (1999) scale, the effect of general entrepreneurial capability on intelligence dissemination and responsiveness is positively significant. Similarly, the effects of international entrepreneurial capability on customer orientation, intelligence generation, dissemination and responsiveness are positively significant. However, general entrepreneurial capability has non-significant effects on customer orientation and intelligence generation. The results also showed that export market orientation positively mediates the relationship between international entrepreneurial capability and firm performance. For the Morris and Paul (1987) scale, the hypothesised relationships between capabilities and market orientation are positively significant and, therefore, support the mediating relationships for both general entrepreneurial capability and international entrepreneurial capability.

Originality/value

Merely having capabilities without acknowledging the firm's strategic orientations is not sufficient to secure superior performance. The authors urge entrepreneurs to capitalise on their entrepreneurial capabilities to leverage organisation-wide export-market-oriented behaviour to achieve superior international performance in emerging economies.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/IJOEM-08-2019-0644
ISSN: 1746-8809

Keywords

  • Emerging economy
  • Entrepreneurial capability
  • Export market orientation
  • Export performance
  • International new ventures

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Article
Publication date: 15 April 2019

Entrepreneurial knowledge, skills, competencies and performance: A study of micro-enterprises in Kelantan, Malaysia

Abdullah Al Mamun, Syed Ali Fazal and Rajennd Muniady

This study aims to examine the effect of entrepreneurial skills, market orientation, sales orientations and networking on entrepreneurial competency and performance of…

Open Access
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Abstract

Purpose

This study aims to examine the effect of entrepreneurial skills, market orientation, sales orientations and networking on entrepreneurial competency and performance of micro-enterprises in Kelantan, Malaysia.

Design/methodology/approach

Adopting a cross-sectional design, this paper collected data through structured interviews from 403 micro-entrepreneurs from “Majlis Amanah Rakyat,” Kelantan and “Majlis Agama Islam dan Adat Istiadat,” Kelantan.

Findings

The findings reveal that entrepreneurial skills, market orientation and networking have a positive effect on entrepreneurial competency. Then, entrepreneurial competency, entrepreneurial skills and networking have a positive effect on enterprise performance. The findings show a significant mediation effect of entrepreneurial competency on the relationships between entrepreneurial skills, market orientation and networking and enterprise performance.

Originality/value

Addressing the understudied “human factor” in entrepreneurship, this paper extends the resource-based view and enriches the existing entrepreneurship literature in Malaysia. It provides useful insights into the improvement of micro-enterprise performance, which is crucial for promoting entrepreneurial activities and for enhancing socio-economic conditions among low-income households in Malaysia. Thus, the government and developmental organizations should focus on the development of entrepreneurial skills, market-oriented approach, networking traits and entrepreneurial competencies and subsequently encourage poor households to perform entrepreneurial activities.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 13 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/APJIE-11-2018-0067
ISSN: 2398-7812

Keywords

  • Performance
  • Skills
  • Market orientation
  • Networking
  • Sales orientation

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Article
Publication date: 16 September 2019

The impact of organizational structure and work autonomy in fostering entrepreneurial tendencies and job performance

Gorkan Ahmetoglu, Lauren Scarlett, Sonia-Cristina Codreanu and Tomas Chamorro-Premuzic

Research examining the influence of organizational factors on entrepreneurial tendencies and performance within organizations is scarce. The purpose of this paper is to…

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Abstract

Purpose

Research examining the influence of organizational factors on entrepreneurial tendencies and performance within organizations is scarce. The purpose of this paper is to investigate the effect of organizational structure and work autonomy on entrepreneurial tendencies, locus of control and performance.

Design/methodology/approach

Data were obtained online using validated self-report questionnaires in a sample of 181 currently employed individuals.

Findings

The results showed organizational structure components to be related to work autonomy and performance, but not to individual-level variables. However, work autonomy related to entrepreneurial tendencies and locus of control, indicating potential indirect effects of organizational structure on individual-level variables via work autonomy. Entrepreneurial tendencies and locus of control were positively related to performance.

Originality/value

Whilst the mediating effect of a number of individual-level traits has been examined in the past, very little research has looked at how organizational factors may influence entrepreneurial tendencies. Fostering entrepreneurial tendencies in employees may facilitate corporate entrepreneurship and performance within organizations.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 8 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/EBHRM-11-2018-0070
ISSN: 2049-3983

Keywords

  • Job performance
  • Organizational structure
  • Entrepreneurial tendencies
  • Work autonomy

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Article
Publication date: 4 April 2016

Entrepreneurial environment, market-oriented strategy, and entrepreneurial performance: A study of Chinese automobile firms

Jialu Sun, Meifang Yao, Weiyong Zhang, Yong Chen and Yan Liu

– The purpose of this paper is to explore the correlations among entrepreneurial environment, market-oriented strategies, and entrepreneurial performance.

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Abstract

Purpose

The purpose of this paper is to explore the correlations among entrepreneurial environment, market-oriented strategies, and entrepreneurial performance.

Design/methodology/approach

Entrepreneurial environment is measured by institutional environment and industrial environment. A survey of 176 large Chinese automobile firms is conducted. The structural equation model is applied to perform analysis.

Findings

The uncertainty of the institutional environment is positively related with market-oriented strategies and market-oriented strategies are positively related with firms’ performance. The stronger the uncertainty of the industrial environment is, the larger impact that market-oriented strategies have on firms’ performance will be. There is no distinct positive relationship between the uncertainty of industrial environment and firms’ market-oriented strategies. The hypothesis, that the stronger the uncertainty of institutional environments is, the larger the impact that market-oriented strategies will be on firms’ performance, is not supported.

Research limitations/implications

In terms of research design, this paper does not select survey samples randomly. This paper only takes institutional and industrial environments into consideration while the environmental characteristics are omitted.

Originality/value

This paper expands entrepreneurship research by integrating previous studies. Findings in this paper are helpful for firms in emerging countries to implement “going abroad strategies,” to start up new businesses in other countries, and to achieve the goals of improving competitiveness and integrating with international firms.

Details

Internet Research, vol. 26 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IntR-05-2015-0138
ISSN: 1066-2243

Keywords

  • E-commerce
  • Market orientation
  • Entrepreneurialism
  • Automotive industry
  • Information industry

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Article
Publication date: 13 August 2018

Entrepreneurial orientation, entrepreneurial education and performance

Yun Hee Cho and Joo-Heon Lee

Korean economy is demanding to change from an industrial society to an entrepreneurial society. It is asking for a generational change from the preexisting paradigms of…

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Abstract

Purpose

Korean economy is demanding to change from an industrial society to an entrepreneurial society. It is asking for a generational change from the preexisting paradigms of such as labor consciousness, the concept of work and company management. Entrepreneurship is one of the key elements that will lead to a successful business performance under highly uncertain business conditions. The purpose of this paper is to examine the relationship between entrepreneurial orientation and business performance. Also, the authors look for the role of entrepreneurship education in the influence of entrepreneurial orientation on financial and nonfinancial business performance.

Design/methodology/approach

To accomplish the purpose of this study, the authors carried out a survey targeting nascent entrepreneurs and total early-stage entrepreneurs with less than seven years of experience. Based on the Miller’s (1983) definition, a group of questions for entrepreneurial orientation, similar to Covin and Slevin (1989), were developed.

Findings

First, among the subfactors of entrepreneurial orientation, it was clear that innovative progressiveness affected nonfinancial business performance. Second, risk-taking propensity did not influence both financial business performance and nonfinancial business performance. Third, entrepreneurship education had no connection with entrepreneurial orientation or business performance.

Practical implications

Nonfinancial business performances are related with long-term goals and growth potential. Innovative proactiveness affects nonfinancial business performance. Thus, entrepreneurs should look for ways to promote their innovative proactiveness. Entrepreneurship education for experienced entrepreneurs is not as effective as that for students.

Originality/value

In the authors’ study, survey questionnaires were sent to 200 nascent and total early-stage entrepreneurs searching for business angel investments or entrepreneurship consultants in Korea. A total of 180 entrepreneurs answered the survey questions online. There are not so many valid studies examining the effect of entrepreneurship education for nascent and total early-stage entrepreneurs in Korea.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 12 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/APJIE-05-2018-0028
ISSN: 2398-7812

Keywords

  • Business performance
  • Entrepreneurial orientation
  • Survey
  • Entrepreneurship education
  • Nascent entrepreneurs

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Article
Publication date: 8 February 2016

Strategic entrepreneurship: mediating the entrepreneurial orientation-performance link

Deniz Kantur

The purpose of this paper is to develop a better understanding of the relationship between firm-level entrepreneurship and organizational performance in an emerging…

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Abstract

Purpose

The purpose of this paper is to develop a better understanding of the relationship between firm-level entrepreneurship and organizational performance in an emerging economy through assessing the mediating influence of strategic entrepreneurship between entrepreneurial orientation and organizational performance. The extant literature on the relationship between firm-level entrepreneurship and organizational performance points to a lack of clarification of the link between real entrepreneurial events and organizational performance.

Design/methodology/approach

Data are collected from 324 respondents in 118 companies in four different industries. The paper adopts structural equation modeling to test the mediated relationship.

Findings

The results show that strategic entrepreneurship fully mediates the relationship between entrepreneurial orientation and organizational performance, assessed as two major categories of financial and non-financial performance.

Research limitations/implications

The dominance of four industries in the data set limits the generalizability of the findings.

Practical implications

Findings highlight strategic and practical implications for managers especially in emerging economies who seek to enhance competitive advantage and exploit market opportunities through entrepreneurial initiatives.

Originality/value

The current study develops a measure of strategic entrepreneurship concept and attempts to contribute to the literature through differentiating between behavioral intentions toward entrepreneurship and real entrepreneurial events at the firm-level to serve as a step to reduce the ambiguity present in the field.

Details

Management Decision, vol. 54 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MD-11-2014-0660
ISSN: 0025-1747

Keywords

  • Structural equation modelling
  • Organizational performance
  • Entrepreneurial orientation
  • Corporate entrepreneurship
  • Strategic entrepreneurial events
  • Strategic entrepreneurship

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Article
Publication date: 28 December 2020

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

Zaynab Dadzie, Ahmed Agyapong and Abdulai Suglo

This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance…

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Abstract

Purpose

This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation.

Design/methodology/approach

The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study.

Findings

Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance.

Originality/value

This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/RIBS-09-2019-0126
ISSN: 2059-6014

Keywords

  • Internationalization
  • Performance
  • Entrepreneurial orientation
  • Small and medium scale enterprises (SMEs)
  • Entrepreneurial orientation (EO)

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