Growth in Family Business: Bellerophon or Chimera

Growth in family business brings lifeblood to sustain longevity across generation, but also critical challenges for the family. Relying on the behavioral agency model and literature on family entrepreneurship, we discuss and test the effect of different governance configurations on entrepreneurial orientation and, in turn, family business growth. Results based on survey data collected by STEP research consortium show that different types of family involvement have contrasting effects on growth: while family members’ involvement in the TMT has a negative effect on growth (fully mediated by EO), the degree of active family shareholding is positively related to growth (partially mediated by EO). Furthermore, multigenerational ownership dispersion strengthens the relationships between family involvement and entrepreneurial orientation. We contribute to the literature on family business by indicating the types of firms that are more or less oriented towards growth.