Abstract:
Startups often have a larger chance of failing than more established businesses. It is stated that family businesses, i.e. businesses that are actively owned, operated, and managed by two or more members of a single family, have a unique set of characteristics that differentiates them from typical start-ups and requires special attention in research. Family firms have the unique characteristic of getting heavy pressure from family members in business decisions and tend to be less risk-taking. However, few studies have addressed the effect of family member influence on entrepreneurial orientation in the Sri Lankan context. From a resource-based perspective, previous research has shown how resource bricolage plays a role in influencing a firm's entrepreneurial orientation. This research expands the past research by analyzing the effect of entrepreneurial bricolage on entrepreneurial orientation in family firms. A quantitative approach was adopted and a self-administered questionnaire was used to collect data. Based on the data from 79 family-owned firms in the Western Province of Sri Lanka, it was discovered that resource bricolage has a significant positive influence on entrepreneurial orientation when start-ups encounter resource restrictions, and the link is negatively moderated by the top management team’s heterogeneity and behavioral integration. The findings should theoretically help start-ups, mainly family firms, to improve their entrepreneurial attitudes, overcome resource limitations and achieve smooth survival and growth. Policymakers need to design awareness campaigns that address not only entrepreneurs but also their family members, who need to be involved to enhance the entrepreneurial nature of Sri Lankan SMEs.
