Entrepreneurial orientation and socioemotional dimensions in small family hotels: do they impact business performance?

Abstract

The family business is a broad concept in which various fields, elements and corresponding influences overlap. Family-specific business motives, behaviours, relationships, emotions and other specificities constitute the heterogeneity of family business. Very strong social and emotional implications in family business indirectly affect family life and even the quality of life. The purpose of this study is to sum up and expand on the understanding of the heterogeneity of small family businesses. It also aims to identify and measure the specific entrepreneurial attributes, knowledge and socioemotional wealth (S.E.W.) of owners. For a sample of small family hotel owners in Croatia, each owner’s specific knowledge, entrepreneurial orientation and motives for establishing a family hotel are analysed, considering the important role of tourism for Croatia. The empirical analysis in this article shows the effects of these distinct characteristics of owners on family-specific performance, where non-financial performance is more relevant. The study also offers a recommendation that local and regional governments organise specific education and networking events, given that the owners in this study who had participated in business-related education performed better. Therefore, low levels of innovation in family business could be improved with education.