Entrepreneurship, Sustainable Growth and Performance
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Entrepreneurship, Sustainable Growth and Performance

Frontiers in European Entrepreneurship Research

Edited by Hans Landström, Hans Crijns, Eddy Laveren and David Smallbone

This book provides an invaluable, state-of-the-art overview of current European research in the field of entrepreneurship. It focuses on four themes, each of which illustrates a key dimension in the overall theme: • entrepreneurs and their role in entrepreneurship • entrepreneurship in family businesses • performance of new ventures and • entrepreneurial processes.
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Chapter 8: The Link between Family Orientation,Strategy and Innovation in Dutch SBEs: Lagged Effects

Lorraine M. Uhlaner, Sita Tan, Joris Meijaard and Ron Kemp

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8. The link between family orientation, strategy and innovation in Dutch SMEs: lagged effects Lorraine M. Uhlaner, Sita Tan, Joris Meijaard and Ron Kemp INTRODUCTION In spite of the unmistakable share of family firms in the economy, our understanding of their strategies, behaviour and performance is still quite limited, as are the differences between predominantly family owned and managed and other types of small and medium-sized enterprises (SMEs). Innovativeness is an important determinant of performance; a review of the literature by Capon et al. (1990) finds that in over two-thirds of the studies, a positive relationship between production innovation strategy and firm performance exists, with more recent research confirming this finding for new technology ventures (Li and Atuahene-Gima, 2001). In turn, strategy has been identified as one of the cornerstones of innovation (Cooper and Kleinschmidt, 1995). In linking strategy with innovation, scholars can be divided into two perspectives. The first perspective embraces those scholars who see strategy-making as a deliberate process in which managers, often aided by consultants, customers and others follow a conscious path of action. The other view is that strategy is an emergent understanding, evolving from the cumulative effect of individual operating decisions taken by management (Mintzberg and Waters, 1985). Either way, the two can be seen as linked. In the deliberate view, new products result from the execution of strategy. From the emergent view, innovation is a tangible manifestation of what the strategy of a firm has been. Previous research has...

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