TY - JOUR
T1 - Entrepreneurial risk taking in family firms
AU - Zahra, Shaker A.
PY - 2005/3/1
Y1 - 2005/3/1
N2 - Family firms are widely recognized as a major source of technological innovation and economic progress. Yet, over time, some family firms become conservative and unwilling to take the risks associated with entrepreneurial activities. Adopting a broad definition of entrepreneurial risk taking, this study uses agency theory to highlight key correlates of risk taking among 209 U.S. manufacturing family firms. The results show that family ownership and involvement promote entrepreneurship, whereas the long tenures of CEO founders have the opposite effect. These results urge managers to capitalize on the skills and talents of their family members in promoting entrepreneurship and selective venturing into new market arenas.
AB - Family firms are widely recognized as a major source of technological innovation and economic progress. Yet, over time, some family firms become conservative and unwilling to take the risks associated with entrepreneurial activities. Adopting a broad definition of entrepreneurial risk taking, this study uses agency theory to highlight key correlates of risk taking among 209 U.S. manufacturing family firms. The results show that family ownership and involvement promote entrepreneurship, whereas the long tenures of CEO founders have the opposite effect. These results urge managers to capitalize on the skills and talents of their family members in promoting entrepreneurship and selective venturing into new market arenas.
UR - http://www.scopus.com/inward/record.url?scp=33645165692&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33645165692&partnerID=8YFLogxK
U2 - 10.1111/j.1741-6248.2005.00028.x
DO - 10.1111/j.1741-6248.2005.00028.x
M3 - Article
AN - SCOPUS:33645165692
SN - 0894-4865
VL - 18
SP - 23
EP - 40
JO - Family Business Review
JF - Family Business Review
IS - 1
ER -
