Entrepreneurial Orientation and Firm Growth in Tunisian Family Firms: The Moderating Role of Generational Involvement

Abstract

In family firms, growth is intricately linked not only to strategic business decisions but also to the dynamics of generational involvement and entrepreneurial orientation (EO). While previous research has explored the connection between family firm growth and EO, it often overlooks the moderating role that generational involvement could play in this relationship. To address this gap in the literature and investigate its potential impact, this study aims to examine how generational involvement shapes the effects of EO on growth. Based on a quantitative study involving 150 Tunisian family firms and employing a questionnaire-based approach along with structural equation modeling using SPSS 22 and AMOS software, the findings reveal that not all dimensions of EO equally contribute to growth. Specifically, proactiveness, competitive aggressiveness, and autonomy influence growth directly and in the presence of generational involvement as moderators. The effectiveness of these dimensions in driving growth is contingent upon the active and collaborative participation of diverse family generations in the entrepreneurial activities of the family firm. This research pinpoints the importance of family firms that wish to ensure long-term EO when multiple generations are involved. It also reaffirms the importance of these notions within family firms for sustaining long-term EO. Furthermore, this study advocates for additional empirical research on the potential role of generational involvement in establishing professionalization and family governance mechanisms. It seeks to explore their impact on the sustainability of entrepreneurial family firms.

Citation

Gafsi, R. (2024), "Entrepreneurial Orientation and Firm Growth in Tunisian Family Firms: The Moderating Role of Generational Involvement", Krasniqi, B.A., Kraus, S., Ramadani, V. and Jones, P. (Ed.) Entrepreneurial Behaviour of Family Firms: Perspectives on Emerging Economies (Entrepreneurial Behaviour Series), Emerald Publishing Limited, Leeds, pp. 59-85. https://doi.org/10.1108/978-1-83753-934-520241004