Studying family businesses in Arab world has increased in interest by the scientific community (Alaya et al., 2017; Basly, 2017; Zgheib, 2017). Attention has recently been focused on such businesses because of their crucial role and contribution to the job creation and employment; and also to the promotion and stimulation of entrepreneurship in their operations (Al Masah, 2011; Ramady and Sohail, 2010; Zain and Kassim, 2012; Zahra et al., 2004). In Arab world, this role is worth questioning due to the making of deeply transformations of most of Arab countries’ economies and to the adoption of structural and developmental plans that may influence the performance of family businesses. Consequently, doing research and producing knowledge in such topic in similar contexts is a challenging issue scholars are likely to encounter (Zahra, 2011). Probably the only thing on which everyone agrees is that entrepreneurial activity, for every country, is recognized as one of the main promoters of industrial dynamism, economic development and growth. It increases the competitiveness of established firms (Carlsson et al., 2013) by adopting an entrepreneurial orientation (EO) that helps them explore new opportunities, grow and achieve profitability under conditions of globalization (Chow, 2006; Stenholm et al., 2016; Zain and Kassim, 2012). The transitions taking place in the Arab Middle East, and especially in Saudi Arabia, offer the opportunity in this paper to focus on Saudi family businesses and question their strategic orientation as they seek to adapt entrepreneurially to a rapidly changing competitive landscape. Such firms have to make sure that they are able to respond to environmental changes and acquire the necessary knowledge in order to take advantage of new business opportunities and perform better (Aloulou, 2018). Since the last decade, researchers become interested by studying EO in family firms and its influence on family firm performance (FFP hereafter) in different sectors and contexts (Akhtar et al., 2015; Casillas et al., 2011; Hernández-Perlines et al., 2017; Naldi et al., 2007; Peters and Kallmuenzer, 2018; Schepers et al., 2014; Sciascia et al., 2010; Serafimovska and Stefanovska Ceravolo, 2013; Stenholm et al., 2016; Tomski, 2014; Vecchiarini and Mussolino, 2013; Yordanova, 2011; Zahra, 2005; Zainol, 2013; Zellweger et al., 2010; Zellweger and Sieger, 2012). Attempting to contribute to the literature of family firms in Arab world, this paper investigates the relationships of EO dimensions to FFP in accordance with the foundational works of Miller (1983), Covin and Slevin (1989) and Lumpkin and Dess (1996); and studying the contingency role of family involvement in management (FIM hereafter) to affect these relationships (Casillas and Moreno, 2010; Casillas et al., 2011; Powell and Eddleston, 2017). The context of Saudi Arabia is characterized by a deeper transformation of its economy after the drop in the oil and energy prices and revenues (McKinsey and Company, 2015). The country has revealed an ambitious economic development program, which aims at widespread diversification of its economy by 2030 (Porter, 2012; Saudi Council of Economic and Development Affairs (SCEDA), 2016). Achieving higher diversification requires building capacities in high-end industries and services sectors and stresses the development of a sustainable knowledge-based economy (Khorsheed, 2015; Nurunnabi, 2017; SCEDA, 2016; Schwab and Sala-I-Martin, 2016).