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


  • Suhad Farsi ,Suzilawati Kamarudin


family-oriented firms, interrelationships, Temporal construal theory, Structural equation modeling, decision making


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.