The Formation of Entrepreneurial Orientation through Transgenerational Entrepreneurial Effort and Its Impact on the Entrepreneurial Outcome: the Case of Korean Micro Family Business

Abstract

Micro Family Business (MFB) owners make up the majority of the total working population. Nevertheless, it is difficult to apply the existing business theories covered in literature due to the nature of the MFB owners having to manage most of the business activities. This study compares with existing family business studies using the structural equation model to figure the structural relationship among the factors affecting the MFB’s performance in terms of entrepreneurial aspect. Both transgenerational effort and entrepreneurial orientation were found to have a positive effect on the entrepreneurial outcome, either directly or indirectly. This suggests that it is possible to apply existing family business research models to micro businesses in which related data is difficult to collect. The study is valuable in that it is the starting point of the empirical study regarding MFB.