Entrepreneurial orientation, risk taking, and performance in family firms

Lucia Naldi, Mattias Nordqvist, Karin Sjöberg, Johan Wiklund

Research output: Contribution to journalArticle

554 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)33-47
Number of pages15
JournalFamily Business Review
Volume20
Issue number1
DOIs
StatePublished - Mar 1 2007
Externally publishedYes

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

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