A firm’s entrepreneurial orientation (EO) is critical for its survival and long-term success. However, there is an ongoing debate about whether the unique characteristics of family firms promote or inhibit EO. Drawing on the resource-based view, this paper aims to contribute to this debate by examining the role of family commitment and the mediating effect of a firm’s long-term orientation in shaping EO within family firms. By doing so, this study provides deeper insights into the dynamics that drive EO in family firms.
This study utilized national survey data from 985 family firms in China. To mitigate potential common method bias, a double-respondent questionnaire design was employed. Data on the independent variable (family commitment) and the dependent variable (entrepreneurial orientation) were answered by the family owner-managers, while the mediating variable, the firm’s long-term orientation, was assessed by non-family financial managers. The theoretical model was tested using Preacher and Hayes’s (2004) SPSS macros process model, with Baron and Kenny’s (1986) method applied as a robustness check. Rigorous endogeneity tests were also conducted. Additionally, this study measured not only entrepreneurial orientation but also actual corporate entrepreneurial behavior.
The research shows that family commitment positively influences a firm’s entrepreneurial orientation/behavior, with this effect being mediated by the firm’s long-term orientation. These findings underscore the significance of family-specific resources in driving EO and highlight long-term orientation as a crucial mediating factor.
This study contributes to the literature by highlighting the crucial role of family commitment in fostering entrepreneurial orientation/behavior. It theorizes that family commitment enhances entrepreneurial orientation/behavior through its influence on the firm’s long-term orientation. This new perspective offers valuable insights into how family influence shapes EO, positioning long-term orientation as a fundamental mechanism in this relationship. Additionally, it extends our understanding of EO in family firms operating in emerging economies.
