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Does Family Involvement in Management Reduce the Risk of Business Failure? The Moderating Role of Entrepreneurial Orientation

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URI: http://hdl.handle.net/10016/27713
ISSN: 0894-4865
DOI: https://doi.org/10.1177/0894486516671075
UXXI: AR/0000022062
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family_FBR_2016_ps.pdf (549.13 KB)
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2016-10-03
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SAGE
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This study explores the question of whether - and under which circumstances - family involvement helps avoid business failure. We hypothesize that it is family involvement in management, rather than ownership, which reduces the risk of failure during economic downturns; however, this effect is negatively affected by the firm's entrepreneurial orientation (EO). We argue that EO hinders reaching consensuses on and commitment to family-centered goals, which are focused on long-term survival. We analyze 369 manufacturing firms in Spain from 2007 to 2013, and find that family involvement in management reduces the risk of business failure, but this effect decreases as EO increases.
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Family business, Family involvement in management, Entrepreneurial orientation, Business failure, Survival analysis
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Revilla, A.J., Pérez-Luño, A. and Nieto, M.J. (2016). Does family involvement in management reduce the risk of business failure? The moderating role of entrepreneurial orientation. Family Business Review, 29 (4), pp. 365-379
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DIM - EE - Artículos de revistas