Entrepreneurial Orientation, Risk Taking, and Performance in Family Firms

15 Pages Posted: 14 Feb 2007

See all articles by Lucia Naldi

Lucia Naldi

Jonkoping University - Jonkoping International Business School (JIBS)

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS); Babson College - Arthur M. Blank Center for Entrepreneurship

Karin Hellerstedt

Jonkoping University - Jonkoping International Business School (JIBS)

Johan Wiklund

Syracuse University

Abstract

This article focuses on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms. Drawing on a sample of Swedish SMEs, we find that risk taking is a distinct dimension of entrepreneurial orientation in family firms and that it is positively associated with proactiveness and innovation. We also find that even if family firms do take risks while engaged in entrepreneurial activities, they take risk to a lesser extent than nonfamily firms. Moreover, and most importantly for our understanding of entrepreneurial orientation in family firms, we find that risk taking in family firms is negatively related to performance. Both theoretical and practical implications of our findings are provided.

Suggested Citation

Naldi, Lucia and Nordqvist, Mattias and Hellerstedt, Karin and Wiklund, Johan, Entrepreneurial Orientation, Risk Taking, and Performance in Family Firms. Family Business Review, Vol. 20, No. 1, pp. 33-47, March 2007. Available at SSRN: https://ssrn.com/abstract=962990 or http://dx.doi.org/10.1111/j.1741-6248.2007.00082.x

Lucia Naldi (Contact Author)

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Babson College - Arthur M. Blank Center for Entrepreneurship

231 Forest Street
Babson Park, MA 02457-0310
United States

Karin Hellerstedt

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Johan Wiklund

Syracuse University ( email )

Whitman School of Management
720 University Avenue
Syracuse, NY 13244-2130
United States

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