The Study Of Mechanism Of Social Embeddness Effecting On Entrepreneurial Orientation Of Family Firms

The development of family firms which are the primary section of private economy have extremely realistic significance to ease the employment pressure, raise the level of taxes and improve the national welfare which can promote the sustainable development of the national economy. The survival and development of family firms has also always been the theoretical and practical focus, but as to the abroad academic research of family firms, in domestic studies scholars have just started to study them, especially, the studies about the innovation and entrepreneurship as the source of exploring potential market opportunities, expanding the scope of business, constructing and keeping the competitive advantage of family firms are still the need for more deeply analysis and refining.This article focuses on the study of entrepreneurial orientation of family firms and takes the social embeddedness which influences the economic behavior of family firms as the sarted point, following the logic line"social embeddedness—entrepreneurial orientation of family firms—organizational performance", basing on the theory of embeddedness, entrepreneurial theory and strategic management theory, constructing a theoretical model about entrepreneurial orientation of family firms; On the basis of the theories, the literatures, and case analysis and small sample data test, this article develops the items which measure the entrepreneurial orientation of family firms. Using the Hierarchical Linear Regression Analysis, this article empirically tests that the dimensions of social embeddedness affect the entrepreneurial orientation of family firms, and the entrepreneurial orientation of family firms affects the organizational performance, hereby further reveals the the mechanism about the social embeddedness affecting on the entrepreneurial orientation of family firms. This study mainly analysis the following four aspects:First, the scale development and validation about the entrepreneurial orientation of family firms. On the basis of literature research and case analysis of three family firms, this article puts forward the three dimensions which are called innovation, risk taking, and sociality of entrepreneurial orientation of family firms; Basing on it, the study which using the exploratory factor analysis of small sample and confirmatory factor analysis, tests the certain stability the three dimension of entrepreneurial orientation of family firms. The results show that each dimension of entrepreneurial orientation may be produce unique role and influence on the growth and development of family firms, but the entrepreneurial orientation of family firms has some differences, with a close relation with the circumstance of transition economy.Second, the influencing study of institutional embeddedness affecting on relational embeddedness and structural embeddedness in social embeddedness. Our empirical test results indicate that in the process of economic transformation institutional embeddedness has important role on the relational embeddedness and structural embeddedness. In the circumstance of transition economy, the institutional factors significantly affect the social relations, the structure of production, maintenance and development of family firms, and the interaction between family firms and external entity, and behavior decision of family firms.Third, the influencing study of social embeddedness affecting on entrepreneurial orientation of family firms. The empirical test results show that:(1) Relational embeddedness lias positive impact on innovation of family firms, but the effect is not significant; Relational embeddedness has negative impact on risk taking of family firms, arid the effect is significant; Relational embeddedness has positive impact on sociality of family firms, and the effect is significant.(2) Structural embeddedness has positive impact on innovation of family firms, and the effect is significant; Structural embeddedness has positive impact on risk taking of family firms, but the effect is not significant; Structural embeddedness has positive impact on sociality of family firms, and the effect is significant.(3) Institutional embeddedness has positive impact on innovation and risk taking of family firms, and the effect is significant; Structural embeddedness has negative impact on sociality of family firms, and the effect is significant.Fourth, the test of entrepreneurial orientation of family firms affecting on organizational performance. Our empirical test results show that, the entrepreneurial orientation of family firms has no significant on the improvement of organizational performance, but the empirical test results about environmental dynamics as a moderator variable show that, environmental dynamics positive moderates the relation between entrepreneurial orientation of family firms and organizational performance, and the effect is significant. Investigating the effect of environmental dynamics is helpful for us to deeply know and understand the relation between entrepreneurial orientation of family firms and organizational performance during the period of social transformation.Compared to existing related studies, the innovative points of this study lie in:(1) Theoretical putting forward the dimension of sociality of entrepreneurial orientation of family firms, and develop the scale the dimension of sociality. Then we use exploratory factor analysis and confirmatory factor analysis to test the reliability and validity of the scale. The finding will be helpful to the quantitative research about the entrepreneurial orientation of family firms, and to some extent also can improve the entrepreneurial theory.(2) Based on the three dimensions of institutional embeddedness, relational embeddedness and structural embeddedness, this article puts forward the mechanism of entrepreneurial orientation of family firms and the effect on organizational performance in our transition economy, and to a great degree makes up for the the existing studies which paid too much attention on the role of entrepreneur’s human capital and entrepreneur’s personality characteristics in the process of entrepreneurial activities;(3) Combining with environmental dynamics characteristics to explore the mechanism of effect of entrepreneurial orientation of family firms on organizational performance, so as to make more clear explanation about the performance meaning about entrepreneurial orientation of family firms.