Analysis shows Entrepreneurial Orientation boosts firm performance and satisfaction in SMEs, indicating family involvement enhances outcomes.
This study examines the influence of entrepreneurial orientation (EO) on firm performance and the moderating effects of family involvement dimensions on the EO-performance relationship. Drawing on resource-based theory, the results from the analysis of a sample of 170 SME entrepreneurs in Vietnam show positive impacts of EO and family culture on both financial and non-financial performance satisfaction. Family culture was found to moderate the relationship between EO and performance satisfaction, indicating higher firm performance when EO and family culture are high. Family culture as a dimension of family involvement may be a key variable in studying firm performance. Family commitment and value sharing could help the SME owner-manager to achieve a higher level of satisfaction with both financial and non-financial outcomes of the firm. Overall, the study contributes by extending our understanding of the EO-performance relationship and the moderating effect of family involvement on this relationship.
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Vu et al. (2025) studied this question.
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