Moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses

Abstract

Purpose: The purpose of this paper is to analyse the moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses. Design/methodology/approach: The sample for this study was collected from 218 family firms associated with the Family Business Institute (IEF). This paper used a structural equation model through PLS-SEM technique to test the proposed model and for contrasting the moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses. Findings: The main result of this work is that international performance of family businesses is determined, to a great extent, by the entrepreneurial orientation. In addition, this effect is reinforced by the absorption capacity, exerting a positive moderating role. Practical implications: If family firms want to improve their international results, they must act in the entrepreneurial orientation through the effect of absorption capacities. Originality/value: The originality of this work comes from the discovery of the new moderating role of absorption capacities in family firms.