Rooted in values, fueled by innovation

: driving financial performance in family firms

Abstract

Certain characteristics and attitudes enable Family firms to gain and maintain a competitive advantage, which can have significant consequences in the global economy (Asaf et al., 2023). With this in mind, this paper examines the mediating role of long-term orientation and innovation in the relationship between concern for organizational values and financial performance of family firms. The dissertation is based on a quantitative correlational analysis. It was used an online survey to test the established hypothesis. The questionnaire was distributed through my personal and professional networks and was designed to test the variables of this research. The total valid sample size was 112 out of 140 completed surveys. To conduct the analysis, it was used a mediating model which allows to examine a causal relationship between the dependent and independent variables. The results suggest that aligning human resources with organizational values and traditions promotes greater long-term orientation and innovation outcomes. Both long-term orientation and innovation are positively related to financial performance, which is further enhanced in companies with a strong focus on values. Moreover, innovation acts as a mediator between the emphasis on organizational values and financial performance. This dissertation highlights the critical role of employee commitment to organizational values and innovation, and demonstrates their significant positive impact on financial performance. Future research could be extended by examining different cultural contexts and investigating additional mediators to deepen the understanding on the topic.

Date of Award	5 Feb 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Liliana Brioso Martins de Andrade Dinis (Supervisor)