Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia

Research Article

Effect of Entrepreneurial Orientation and Family Involvement on Family Business Performance: Case Study in Hotel Business in Yogyakarta

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  • @INPROCEEDINGS{10.4108/eai.5-8-2020.2301127,
        author={Erny  Rachmawati and Pratiwi Dwi Suhartanti},
        title={Effect of Entrepreneurial Orientation and Family Involvement on Family Business Performance: Case Study in Hotel Business in Yogyakarta},
        proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020,  5 - 6 August 2020, Purwokerto, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2020},
        month={10},
        keywords={entrepreneurial orientation family involvement family business performance mediating role hotel business},
        doi={10.4108/eai.5-8-2020.2301127}
    }
    
  • Erny Rachmawati
    Pratiwi Dwi Suhartanti
    Year: 2020
    Effect of Entrepreneurial Orientation and Family Involvement on Family Business Performance: Case Study in Hotel Business in Yogyakarta
    ICBAE
    EAI
    DOI: 10.4108/eai.5-8-2020.2301127
Erny Rachmawati1,*, Pratiwi Dwi Suhartanti2
  • 1: Faculty of Economics and Business, University of Muhammadiyah Purwokerto Purwokerto, Indonesia
  • 2: Master of Management, Faculty of Economics and Business, University of Syiah Kuala Banda Aceh, Indonesia
*Contact email: ernyunsoed9@gmail.com

Abstract

This study aims to determine the direct effect of entrepreneurial orientation on family business performance. In addition, this study will also discuss the role of family involvement as a mediating variable. A total of 328 hotels in Yogyakarta were selected as samples by the convenience sampling method. Primary data was collected through a structured questionnaire. Hypotheses are tested by structural equation modeling using AMOS 22.0. Sobel test is used to determine the indirect effect of mediation variables. The results showed that entrepreneurial orientation has no significant effect on family business performance. Family involvement acts as a fully mediation in the relationship between entrepreneurial orientation and family business performance. This finding has significant implications that can help family businesses in developing strategies that are suitable in business management. The results provide a new model in providing an overview of the direct and indirect roles in the assessment of family business performance.