THE IMPACT OF ENTREPRENEURIAL ORIENTATION ON FAMILY BUSINESS PERFORMANCE: THE MODERATING ROLE OF SOCIOEMOTIONAL WEALTH IN EGYPTIAN SMES

Abstract

This study investigates the impact of Entrepreneurial Orientation (EO) on family business performance in Egyptian small and medium-sized enterprises (SMEs), with particular emphasis on the moderating role of Socioemotional Wealth (SEW). EO is examined through five dimensions: innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy. A quantitative, cross-sectional survey design was adopted, and primary data were collected through a structured questionnaire from owners, family members involved in management, non-family managers, and employees working in Egyptian family-business SMEs. Using Cochran's formula for an unknown population, a target sample of 384 respondents was established; 381 valid responses were retained for analysis. Data were analyzed using SPSS through descriptive statistics, reliability and validity assessment, diagnostic tests, and regression analysis. The results show that EO has a positive and statistically significant effect on family business performance (β = 0.572, p < 0.001), explaining 32.7% of its variance. All five EO dimensions also have significant positive effects, with innovativeness showing the strongest individual relationship (β = 0.538), followed by proactiveness (β = 0.381), autonomy (β = 0.365), risk-taking (β = 0.352), and competitive aggressiveness (β = 0.312). In addition, SEW significantly strengthens the EO–performance relationship (interaction β = 0.259, p < 0.001), with the moderation model explaining 69.7% of the variance in performance. The findings indicate that entrepreneurial behavior becomes more effective when it is aligned with family-centered values, identity, emotional attachment, and long-term orientation. The study contributes empirical evidence from an emerging-market context and offers practical implications for family-business owners, managers, and policymakers.