Influence of Entrepreneurial Orientation and Alertness on Firm Performance: Multi Group Analysis of Family and Non-Family Firms in Tourism Sector

The present paper aims to study the influence of entrepreneurial orientation on firm performances of family and non-family tourism firms in J&K, India. Moreover, it examines entrepreneurial alertness as a mediator. To analyze the data, partial least squares structural equation modeling was employed. Further, the article presents a multigroup analysis to determine differences between two sample groups. The results of Family Firms and Non-Family Firms showed a significant influence of Entrepreneurial orientation on Firm performance, except for risk-taking in family firms. Entrepreneurial alertness significantly mediates between Entrepreneurial orientation and Firm performance, except for risk-taking in the case of tourism Non-Family Firms. Regarding Family Firms, entrepreneurial alertness significantly mediates between innovativeness and firm performance. The results revealed that Firm Performance is more strongly affected by innovativeness and pro-activeness in Non-Family Firms than in Family Firms. Further, PLS-MGA results showed significant differences in the relationships between Entrepreneurial alertness and Firm Performance and risk-taking and Firm Performance. This is the first study that has investigated the role of Entrepreneurial alertness in the relationship between Entrepreneurial orientation and Firm performance.