The role of strategic entrepreneurship in enhancing the business performance of Indian family businesses

Purpose This study aims to examine the impact of strategic entrepreneurship (SE) on the performance of family businesses in the Indian context and analyse the mediating role of explorative and exploitative innovation in the relationship between SE and family business performance (FBP). Design/methodology/approach The study is based on a sample of 394 Indian family businesses and is designed as a cross-sectional study. Structural equation modelling was used to test the hypotheses. In addition, the authors analysed the mediating role of explorative and exploitative innovation in the SE-FBP relationship by means of bootstrap analysis. Findings This study highlights a significant and positive relationship between SE and FBP. The findings also reveal that exploratory innovation does not mediate this relationship, whereas exploitative innovation plays a crucial mediating role in reinforcing SE to gain superior business performance in Indian family firms. Practical implications The study offers valuable insights for policymakers and entrepreneurs to enhance the competitiveness and sustainability of Indian family businesses by leveraging SE and innovation. Originality/value The contribution of this research adds significant value to the relatively underexplored domain of SE in Indian family firms. These insights underscore the importance of entrepreneurial behaviours in driving the success of family businesses, particularly through the enhancement of exploitative capabilities.