Abstract

In this paper, we examine how family and entrepreneurial orientation (EO) influences internal and external new entry among family businesses as well as the impact such new entry has on the relationship between EO and performance. Using a sample of 556 Norwegian family firms, we show that family influences internal new entry negatively if they have too much power, although a strong family culture is a positive influence. EO is the main explanatory variable for both internal and external new entry. This supports central claims in EO literature that new entry is the direct outcome of EO. However, another key contribution of this paper is the finding that new venture creation and EO both have an effect on performance compared to competitors. The findings further show that EO is partly mediated through external new entry in the form of new ventures.

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