The purpose of this paper is to examine the effect of internal marketing and
entrepreneurial orientation on innovation in family businesses. By reviewing related
literature, the relationships among internal marketing, entrepreneurial orientation, and
innovation were hypothesized. The developed conceptual model is tested using structural
equation modeling (SEM) using a sample of 288 family businesses. The result of
the SEM model shows that both internal marketing and entrepreneurial orientation act
as a basis for innovation in family businesses. Further, it was revealed that internal
marketing is key determinant of entrepreneurial orientation in the context of family
business. The study has contributed to the literature by demonstrating the routes
through which internal marketing and entrepreneurial orientation impact on innovation
in the case of family businesses.

• The Effects of Internal Marketing and Entrepreneurial Orientation on Innovation in Family Businesses