Family firm performance: The influence of entrepreneurial orientation and absorptive capacity |
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Authors: | Felipe Hernández‐Perlines Juan Moreno‐García Benito Yáñez‐Araque |
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Institution: | University of Castilla‐La Mancha |
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Abstract: | This article investigates the influence of entrepreneurial orientation and absorptive capacity on family firm performance. Partial least squares structural equation modeling (PLS‐SEM) was used to analyze empirical data for 218 Spanish family firms. Absorptive capacity positively mediated the relationship between entrepreneurial orientation and family firm performance. This total mediation effect suppressed the direct effect of entrepreneurial orientation on family firm performance. A major implication of this finding is that for family firms to improve their performance through entrepreneurial orientation, absorptive capacity must act as a mediator. |
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Keywords: | absorptive capacity entrepreneurial orientation family firm firm performance PLS mediating effect |
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