The theoretical framework that conceptualizes the interaction between entrepreneurial orientation (hereinafter EO) and family business (hereinafter FB) in Gastronomic Hospitality Industry (hereinafter GHI) is quite fragmented. This paper seeks to close this gap by offering a study that aims to examine the relationship between the dimensions of the EO and more specifically those of risk-taking, proactiveness and innovation with the businesses' financial performance. It also analyses the additional effect of the businesses' size on this performance to determine which types of entrepreneurial behavior are particularly important for family businesses within the gastronomic hospitality sector.
The quantitative approach was selected as the most appropriate method for testing the hypotheses that investigated the effect of the three dimensions of EO on the firm's financial performance as well as the interaction with the firm size. The target group of the research was Greek FB operating in the gastronomic hospitality industry and the sample of this survey included 150 family businesses. Factor analysis and hierarchical multiple regression analyses were chosen as the preferable methodological approach to fully examine these interactions.
Findings from a sample of the family businesses in the gastronomic hospitality industry indicate that innovation and proactiveness, as dimensions of the EO, significantly explain performance, whereas risk-taking does not. Furthermore, smaller business sizes negatively moderate the relationship between proactiveness and performance. The study also proposes strategies to foster corporate collaboration to overcome the limitations associated with small business size and enhance entrepreneurship and innovation.
This study is the first attempt to systematically investigate the EO of the family-owned firms in the gastronomic hospitality industry.
