Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine

Family businesses (FB) play a significant role in solidification the world economy in developed and developing countries. The FB performance depends on various factors. Among those factors strategic orientation (SO), organization structure (OS), family influence (FI), and the effect of external envi...

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Main Author: Smirat, Issa M.H.
Format: Thesis
Language:eng
eng
Published: 2016
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Online Access:https://etd.uum.edu.my/6385/1/s96036_01.pdf
https://etd.uum.edu.my/6385/2/s96036_02.pdf
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institution Universiti Utara Malaysia
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language eng
eng
advisor Mohd Sharif, Mohd Noor
topic HB Economic Theory
spellingShingle HB Economic Theory
Smirat, Issa M.H.
Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine
description Family businesses (FB) play a significant role in solidification the world economy in developed and developing countries. The FB performance depends on various factors. Among those factors strategic orientation (SO), organization structure (OS), family influence (FI), and the effect of external environment (EE).The main aim of this study is to examine the effects of SO, OS moderated by FI, and EE on family firm performance. Via the random stratified sampling technique, Palestine family business owners have completed a 315 as a sample of quantitative data using the questionnaire. The data were statistically using PLS-SEM to test the structural model. Findings suggest the direct effects of strategic orientation and organizational structure on family firm performance is widely supported. Data shows positive significant relationships between defenders, prospectors and reactors' strategic orientations relationship with family firm performance. Furthermore, there is a positive relationship between centralized organizational structure and family firm performance. The sample shows that defenders, prospectors, analyzers, and reactors' strategic orientations are broadly used. In addition, family influence moderates these relationships effectively. The high level of family influence indicated a stronger negative relationship between defenders' and analyzers' strategic orientations and family firm performance, as opposed to when there is a low-level of family influence. Family influence also moderates the centralized organizational decision making. As well as in older medium firms, the centralized decision-making is concentrated in the first and second generations since in newer and large firms, decision-making is more concentrated in the third and fourth generations. The results also indicate that external environment is negative moderates the relationships between defenders and prospectors' strategic orientations, and family firm performance. Besides, a weaker positive relationship between family influence and prospectors' strategic orientations, and family firm performance, as well as a weak positive relationship between the moderated effect of external environment and reactors' strategic orientations, and family firm performance. The theoretical, methodological and practical implications of the study are widely discussed. Moreover, future research are closely considered.
format Thesis
qualification_name Ph.D.
qualification_level Doctorate
author Smirat, Issa M.H.
author_facet Smirat, Issa M.H.
author_sort Smirat, Issa M.H.
title Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine
title_short Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine
title_full Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine
title_fullStr Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine
title_full_unstemmed Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine
title_sort family business strategic orientations, structure, and performance: moderating effects of family influence and environment in palestine
granting_institution Universiti Utara Malaysia
granting_department School of Business Management
publishDate 2016
url https://etd.uum.edu.my/6385/1/s96036_01.pdf
https://etd.uum.edu.my/6385/2/s96036_02.pdf
_version_ 1776103687419068416
spelling my-uum-etd.63852023-03-09T03:03:19Z Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine 2016 Smirat, Issa M.H. Mohd Sharif, Mohd Noor School of Business Management School of Business Management HB Economic Theory Family businesses (FB) play a significant role in solidification the world economy in developed and developing countries. The FB performance depends on various factors. Among those factors strategic orientation (SO), organization structure (OS), family influence (FI), and the effect of external environment (EE).The main aim of this study is to examine the effects of SO, OS moderated by FI, and EE on family firm performance. Via the random stratified sampling technique, Palestine family business owners have completed a 315 as a sample of quantitative data using the questionnaire. The data were statistically using PLS-SEM to test the structural model. Findings suggest the direct effects of strategic orientation and organizational structure on family firm performance is widely supported. Data shows positive significant relationships between defenders, prospectors and reactors' strategic orientations relationship with family firm performance. Furthermore, there is a positive relationship between centralized organizational structure and family firm performance. The sample shows that defenders, prospectors, analyzers, and reactors' strategic orientations are broadly used. In addition, family influence moderates these relationships effectively. The high level of family influence indicated a stronger negative relationship between defenders' and analyzers' strategic orientations and family firm performance, as opposed to when there is a low-level of family influence. Family influence also moderates the centralized organizational decision making. As well as in older medium firms, the centralized decision-making is concentrated in the first and second generations since in newer and large firms, decision-making is more concentrated in the third and fourth generations. The results also indicate that external environment is negative moderates the relationships between defenders and prospectors' strategic orientations, and family firm performance. Besides, a weaker positive relationship between family influence and prospectors' strategic orientations, and family firm performance, as well as a weak positive relationship between the moderated effect of external environment and reactors' strategic orientations, and family firm performance. The theoretical, methodological and practical implications of the study are widely discussed. 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