Family business strategic orientations, structure, and performance: moderating effects of family influence and environment in Palestine

Family businesses (FB) play a significant role in solidification the world economy in developed and developing countries. The FB performance depends on various factors. Among those factors strategic orientation (SO), organization structure (OS), family influence (FI), and the effect of external environment (EE).The main aim of this study is to examine the effects of SO, OS moderated by FI, and EE on family firm performance. Via the random stratified sampling technique, Palestine family business owners have completed a 315 as a sample of quantitative data using the questionnaire. The data were statistically using PLS-SEM to test the structural model. Findings suggest the direct effects of strategic orientation and organizational structure on family firm performance is widely supported. Data shows positive significant relationships between defenders, prospectors and reactors' strategic orientations relationship with family firm performance. Furthermore, there is a positive relationship between centralized organizational structure and family firm performance. The sample shows that defenders, prospectors, analyzers, and reactors' strategic orientations are broadly used. In addition, family influence moderates these relationships effectively. The high level of family influence indicated a stronger negative relationship between defenders' and analyzers' strategic orientations and family firm performance, as opposed to when there is a low-level of family influence. Family influence also moderates the centralized organizational decision making. As well as in older medium firms, the centralized decision-making is concentrated in the first and second generations since in newer and large firms, decision-making is more concentrated in the third and fourth generations. The results also indicate that external environment is negative moderates the relationships between defenders and prospectors' strategic orientations, and family firm performance. Besides, a weaker positive relationship between family influence and prospectors' strategic orientations, and family firm performance, as well as a weak positive relationship between the moderated effect of external environment and reactors' strategic orientations, and family firm performance. The theoretical, methodological and practical implications of the study are widely discussed. Moreover, future research are closely considered.