It has always been a thorny dilemma for family entrepreneurs that they cannot strike a proper balance between family and business, yet existing studies have failed to provide convincing evidence to address it. Drawing on the dual-goal perspective of family firms, this paper investigates the interactive effects of business-oriented and family-oriented strategic behaviors on firm performance. Using data from the China Private Enterprise Survey Database, this paper finds that: First, the time invested by family entrepreneurs in work and in family significantly enhance firm performance, yet the two exhibit heterogeneous interaction effects in different contexts. Specifically, in family firms controlled by female owners, start-up family firms, and those operating in highly competitive market environments, prioritizing business and prioritizing family demonstrate a substitution effect. In contrast, in family firms controlled by male owners, mature family firms, and those operating in low-competition market environments, the two show a complementary effect. Second, there exists an optimal work-family time allocation ratio that maximizes the net profit of the enterprise. Furthermore, in comparison with family firms controlled by male owners, mature family firms, and those in low-competition market environments, the optimal work-family time allocation ratio is relatively higher in family firms controlled by female owners, start-up family firms, and those in highly competitive market environments. This study expands the analytical framework of work-family relationship research and provides practical implications for family entrepreneurs on how to balance work and family responsibilities.