Measuring The Influence of Goals, Decision Making, And Strategic Orientation on The Performance of Family Oriented Firms

Abstract

The present study contributes to the extant literature on the performance of family-oriented firms by examining the interrelationships between firm goals, decision making, strategic orientation, and firm performance. Using the Temporal construal theory, a set of direct and indirect hypotheses was proposed to investigate these links, considering the mediating role of strategic orientation. Structural equation modeling (SEM) has been used for a sample of 155 firm owners in Saudi Arabia. The SEM results confirmed decision-making and strategic orientation significantly influence firm performance; thereby, firm decision-making negatively influences firm performance. Therefore, strategic orientation mediates the relationship between decision making, firm goals, and firm performance; furthermore, decision-making does not mediate the firm goals and firm performance.