Entrepreneurial orientation and family firm performance: the moderating role of TMT identity-based and knowledge-based faultiness

Project Description

Abstract

Research has shown that entrepreneurial orientation (EO) is positively associated with per- formance, but several context-specific features and contingencies affect this relationship. Accordingly, this article focuses on the specific context of family firms (FFs) and introduces top management team (TMT) faultlines as moderators. The main findings, obtained on a sample of 111 medium- and large-sized FFs, suggest that strong identity-based faultlines (IBFs) nega- tively moderate the EO–FF performance relationship, even within TMTs that are comprised only of family members, which are often viewed as homogeneous teams. Conversely, strong knowledge-based faultlines (KBFs) amplify the positive effect of EO on FF performance.

Keywords: entrepreneurial orientation, family firms, identity-based faultlines, knowledge-based faultlines, TMT diversity, performance