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Family firm performance: The influence of entrepreneurial orientation and absorptive capacity
Author(s) -
HernándezPerlines Felipe,
MorenoGarcía Juan,
YáñezAraque Benito
Publication year - 2017
Publication title -
psychology and marketing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.035
H-Index - 116
eISSN - 1520-6793
pISSN - 0742-6046
DOI - 10.1002/mar.21045
Subject(s) - absorptive capacity , mediation , entrepreneurial orientation , structural equation modeling , business , psychology , orientation (vector space) , family business , partial least squares regression , business administration , moderated mediation , entrepreneurship , demographic economics , social psychology , marketing , economics , sociology , computer science , social science , geometry , mathematics , finance , machine learning
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.