The Impact of Entrepreneurial Orientation on Debt Financing of Family Businesses: Evidence from Nigeria.

Afusat Jaiyeola, Yong Wang, Samia Mahmood

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

2 Citations (Scopus)

Abstract

There exists a shortage of studies that establish linkages between entrepreneurial orientation and debt financing in family businesses. In line with this research stream, the purpose of this chapter is to examine the relationship between entrepreneurial orientation and debt financing of family businesses. Specifically, the study investigates how the five entrepreneurial orientation dimensions – risk-taking, innovativeness, proactiveness, competitive aggressiveness, and autonomy influence family business debt financing. By adopting a qualitative research methodology and based on empirical evidence gathered through a 10-case study design involving face-to-face interviews with owners of family businesses in Nigeria, the study examines the influence of entrepreneurial orientation on debt financing. The results suggest that the entrepreneurial orientation of family businesses seems to play a pivotal role in influencing debt financing. If a firm is entrepreneurial-oriented, it is reasonable to expect that it will focus attention on new and emerging opportunities for obtaining debt financing. The study advances research on entrepreneurial orientation and debt financing in family businesses. It develops an empirically theoretical framework at the intersection of the family business and entrepreneurial orientation research, filling a gap in the literature. Future research could substantiate the findings of this study on a broader empirical base, using quantitative methods. This study offers a new perspective to the study of entrepreneurial orientation and, at the same time, contributes with findings from research on entrepreneurial orientation to the study of debt financing in family businesses.
Original languageEnglish
Title of host publicationFamily Business Debates
Subtitle of host publicationMultidimensional Perspectives Across Countries, Continents and Geo-political Frontiers
EditorsOscar Javier Montiel Méndez, Salvatore Tomaselli, Argentina Soto Maciel
Place of PublicationUK
PublisherEmerald
Pages351-379
Number of pages29
Edition1
ISBN (Electronic)978-1-80117-668-2
ISBN (Print)978-1-80117-667-5
DOIs
Publication statusPublished - 28 Nov 2022

Keywords

  • Family Business
  • Debt Financing
  • Resource-Based View
  • Entrepreneurial Orientation
  • Financial Decision Making

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