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Strategic posture and performance: revealing differences between family and nonfamily firms

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<mark>Journal publication date</mark>09/2014
<mark>Journal</mark>Journal of Family Business Strategy
Issue number3
Volume5
Number of pages13
Pages (from-to)239-251
Publication StatusPublished
Early online date7/02/14
<mark>Original language</mark>English

Abstract

We investigate two strategic postures, entrepreneurial orientation (EO) and small business orientation (SBO), and their relationships with firm performance, revealing significant differences between family and nonfamily firms. We examine EO and SBO in 377 small businesses, finding that EO has a greater impact on the performance of nonfamily firms, whereas SBO drives the performance of family firms. Contrary to research suggesting that family firms should behave more entrepreneurially, our results indicate that this behaviour has no significant effect on family firm performance. Rather, increased performance is found in family firms that adopt a small business strategic orientation.