Family firm CEO shaping firm-level entrepreneurial orientation : the board of directors as mediator
Faculty of Applied Economics
Proceedings / Mississippi State University. Academy of Management. - Washington, D.C.
University of Antwerp
This article analyses the relationship between the generational stage of the CEO and family firm entrepreneurial orientation. Based on notions from family orientation and identity theory, we argue that CEOs personal priorities shift between first and later generations which affects the firms entrepreneurial orientation. As little is known about how CEOs individual priorities shape firm-level entrepreneurial orientation, our model clarifies how board behavior mediates this relationship. More specific, we argue that CEOs use their power to influence the behavior of the board in accordance with their personal priorities, and consequently shape entrepreneurial orientation. Using a sample of 211 Belgian family firms, this study not only finds that founder-led firms show higher levels of entrepreneurial orientation than firms that are led by subsequent generations, but also, board behavior is found to mediate these relationships.