Long-Term Orientation as a Resource for Entrepreneurial Orientation in Private Family Firms: The Need for Participative Decision Making

  • Jelle Schepers
    Research Center for Entrepreneurship and Family Firms (RCEF), Hasselt University, Agoralaan, Building D, 3590 Diepenbeek, Belgium
  • Wim Voordeckers
    Research Center for Entrepreneurship and Family Firms (RCEF), Hasselt University, Agoralaan, Building D, 3590 Diepenbeek, Belgium
  • Tensie Steijvers
    Research Center for Entrepreneurship and Family Firms (RCEF), Hasselt University, Agoralaan, Building D, 3590 Diepenbeek, Belgium
  • Eddy Laveren
    Department of Accountancy and Finance, University of Antwerp, Prinsstraat 13, 2000 Antwerpen, Belgium

説明

<jats:p>Building on the resource-based view (RBV) of the firm, this paper suggests that a family firm’s long-term orientation (LTO) can be an important resource that increases firm-level entrepreneurial orientation (EO). Nevertheless, resource orchestration suggests that managers need to orchestrate their resources in order to realize any potential advantage. Therefore, we hypothesize that a family firm’s LTO entails potential resources to engage in entrepreneurial activities, while a participative decision making (PDM) style serves as coordinating mechanism that helps the firm to manage these resources. Using data from 209 private family firms, the results show a positive association between LTO and EO. Also, PDM was found to positively moderate the LTO-EO relationship, providing empirical support for our central hypothesis.</jats:p>

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