The aim of this chapter is to add to the investigation on how entrepreneurial orientation contributes to family firm performance through the role of different institutions as intervening factors. Building on new institutional economics the authors suggest that some formal institutions such as the size of the government, the arbitrary power of the government and insecure property rights alter the way in which some dimensions of entrepreneurial orientation impact family firms’ performance. The study is based on a unique sample which includes survey data on entrepreneurial families as part of the Successful Transgenerational Entrepreneurship Practices (STEP) project.