A Configurational Approach of the Relationship Between Entrepreneurial Orientation and Growth of Family Firms

Abstract

The present research aims to improve scholars’ understanding of the relationship between entrepreneurial orientation (EO) and the growth of family firms in two areas. The authors propose that the EO—growth relationship is contingent on different contextual variables—environmental dynamism and environmental hostility—and an internal variable—generational involvement. Also, they consider EO to be a composite construct integrated from and related to different independent dimensions. Using information from 317 Spanish family firms, results show that (a) EO positively influences growth only in second-generation family businesses, (b) the moderating influence of the generational involvement is related to the risk-taking dimension, and (c) dynamism and hostility of the environment, respectively, moderate the relationship between EO and growth in a positive sense.