Culture in Family-Owned Enterprises: Recognizing and Leveraging Unique Strengths

2004 ◽  
Vol 17 (1) ◽  
pp. 61-70 ◽  
Author(s):  
Daniel Denison ◽  
Colleen Lief ◽  
John L. Ward
Keyword(s):  
Organizational Behavior ◽  
Corporate Culture ◽  
Family Business ◽  
Family Firms ◽  
Assessment Tool ◽  
Small Sample ◽  
Business Culture ◽  
Bottom Line ◽  
Family Enterprises ◽  
And Performance

Through years of consulting experience and culture research, a fuller picture of family firms began to emerge. It became increasingly clear that family business sustainability and accomplishment were rooted in something deeper, something beyond superficial explanation. Belief in the innate value and uniqueness of family business culture drove collaboration on this project between the disciplines of family business and organizational behavior. The goal was to critically examine family business culture and performance relative to nonfamily firms. The Denison Organizational Culture Survey, a cultural assessment tool that has linked corporate culture to financial performance, was administered to a sample of 20 family businesses and 389 nonfamily businesses, allowing us to compare their cultures. The results showed that the corporate cultures of family enterprises were more positive than the culture of firms without a family affiliation. Family enterprises scored higher on all 12 dimensions of the assessment tool. Despite the small sample, several of these differences were statistically significant. This suggests that family firms perform better because of who they are. In addition, recent research that shows they also perform better because of what they do strategically. Their histories and shared identities provide a connectedness to time-tested core values and standards of behavior that lead to bottom-line success.

scholarly journals Hierarchical Dyadic Congruence in Family Firms: The Interplay of Supervisor and Supervisee Socioemotional Wealth Importance and Familial Status

2018 ◽  
Vol 43 (2) ◽  
pp. 322-329 ◽  
Author(s):  
Giovanna Campopiano ◽  
Emanuela Rondi
Keyword(s):  
Social Exchange ◽  
Family Business ◽  
Theoretical Basis ◽  
Family Firms ◽  
Socioemotional Wealth ◽  
Organization Behavior ◽  
Fine Grained ◽  
The Family ◽  
And Performance ◽  
The Relationship

We extend McLarty, Vardaman, and Barnett’s analysis of how family firm supervisor attributes, in terms of familial status and socioemotional wealth importance, affect supervisee performance by considering the supervisee attributes. We further integrate the concept of restricted and generalized social exchange to provide a theoretical basis for how hierarchical dyadic (in)congruence moderates the relationship between supervisee commitment and performance. By providing a more fine-grained conceptualization, we contribute to the family business literature at its organization behavior interface.

Integration of advances in sustainable technologies for the development of the Sustainable Building Assessment Tool

2020 ◽  
Vol 19 (3) ◽  
pp. 335-360
Author(s):  
Suchith Reddy Arukala ◽  
Rathish Kumar Pancharathi
Keyword(s):  
Building Materials ◽  
Assessment Tool ◽  
Sustainable Construction ◽  
Bottom Line ◽  
Sustainable Technologies ◽  
Discrete Reinforcement ◽  
Technological Advances ◽  
Building Assessment ◽  
And Performance ◽  
Social Environmental

The construction sector is a resource-driven and resource-dependent industry. A rising global interest to incorporate sustainability principles in the policy-making means a careful balancing of economic growth with sustainability. To achieve this end in the Indian building sector, a triple-bottom-line-based building assessment tool like GRIHA and IGBC was introduced for assessing building sustainability. However, to revitalize the ideas of Reduce, Replace, Reuse, Recycle and Renovate (the ‘5Rs’) into implementable solutions, the technological dimension is introduced to form a quadruple bottom line (QBL) approach, i.e., social, environmental, economic and technological (SEET), for achieving sustainable construction. This study aims to address the necessity to add a new dimension, viz. technological advances in the sustainability arena of the construction industry. The objective of the study is to include technological advances in building materials, construction processes and techniques and design philosophies in the developed SBAT framework. In this extended and upgraded SBAT 2.0, advances in sustainability (AS) criterion accounts for 11.5 per cent showing its significance in achieving building sustainability. The use of discrete reinforcement, additive manufacturing, 3D printing, design based on packing density and rheological properties of concrete, use of alkali-activated materials in the mix-design and performance-based design concepts that affect future sustainability are successfully brought into the fold of SBAT framework.

Impact of employee pro-organizational unethical behavior on performance evaluation rated by supervisor: a moderated mediation model of supervisor bottom-line mentality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaohui Zhan ◽  
Yun Liu
Keyword(s):  
Performance Evaluation ◽  
Organizational Behavior ◽  
Hierarchical Linear Modeling ◽  
Mediating Effect ◽  
Mediation Effect ◽  
Linear Modeling ◽  
Bottom Line ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The topic of employees’ unethical pro-organizational behavior (UPB) has attracted more and more interest in both practice and academic fields. However, previous studies have mainly investigated the antecedents of UPB and little research has discussed the outcome variables. This study aims to provide a comprehensive understanding of the effect mechanism of UPB on employee performance evaluation rated by a supervisor through a leader-member exchange (LMX) and the moderating role of supervisor bottom-line mentality (BLM). Design/methodology/approach This study used a sample consisting of 304 employees and 96 supervisors in several manufacturing firms in China. The authors used hierarchical linear modeling to test the hypotheses, as this was cross-level research. In addition, this paper also uses Mplus7.4 to test the moderating effects of supervisor BLM on the indirect effects between the UPB and performance evaluation by a moderated path analysis. Findings The results confirm that UPB is positively related to performance evaluation rated by supervisors. Additionally, the mediating effect of LMX in the relationship between UPB and performance evaluation is successfully demonstrated. Furthermore, supervisor BLM cross-levelly moderates the relationship between UPB and LMX, as well as moderates the mediation effect of LMX on the correlation between UPB and performance evaluation. Research limitations/implications The primary contribution of this research is building a cross-level model for the effect of UPB on followers’ performance evaluation scored by the supervisor and thereby extending the nomological networks of both UPB and performance evaluation literature. Another contribution the study makes to the literature is that it provides a new perspective to understand how UPB relates to followers’ performance evaluation. Originality/value This is the first study about how and when UPB predicts followers’ performance evaluation rated by the supervisor.

Stakeholder Perceptions of Culture and Management Practices in Family and Family Firms - A Preliminary Report

1997 ◽  
Vol 10 (2) ◽  
pp. 135-155 ◽  
Author(s):  
Ernesto J. Poza ◽  
Theodore Alfred ◽  
Anil Maheshwari
Keyword(s):  
Family Business ◽  
Preliminary Report ◽  
Family Firms ◽  
Management Practices ◽  
Family Businesses ◽  
Family Ownership ◽  
Business Culture ◽  
Stakeholder Perceptions ◽  
Communication Processes ◽  
Succession Processes

The research reported here represents part of an on-going project. Family businesses participating in the Partnership with Family Business at the Weatherhead School of Management, Case Western Reserve University, completed questionnaires that explored family and business culture and practices. The completed questionnaires show that CEOs generally perceived the practices, cultures, and succession processes more favorably than both other family members and non-family managers. The questionnaires indicate important relationships between family and family-firm cultures, suggesting the importance of intervention approaches that address the whole system of family and business. Non-family managers' perceptions of family firms differ, posing challenges to the full1 utilization of their capabilities. Age is significant in explaining some of the differences in perceptions within and between family and non-family respondents. Finally, responses indicate that planning practices, communication processes, and the use of boards are influenced by family ownership and are positively related to some features of firm andqor family.

scholarly journals An Investigation Of Family Culture In Family Firms’ Performance In Retailer-Vendor Strategic Partnerships

2021 ◽  
Author(s):  
Leonardo Amado Godoy
Keyword(s):  
Family Business ◽  
Positive Relationship ◽  
Family Firms ◽  
Strategic Partnerships ◽  
Family Culture ◽  
The Family ◽  
Relationship Value ◽  
And Performance ◽  
The Impact ◽  
Group Family

This research proposes a model to measure the effect of family culture on firm performance in family business retailer-vendor strategic partnerships. Prior research that has contributed to the development of the discourse on family culture, organizational culture, family and relationship value, commitment, and trust will be analyzed. Eight hypotheses are presented, four of which are an extension of prior research. The model ratifies a positive relationship between family culture and performance, especially when considering the successor generation. Since the founders of the firm are the personification of the family culture itself, for this group, family culture does not positively influence performance. The outcome of this research will illustrate not only the effects of family culture in family firms’ performance, but also the impact of relationship and behavioral factors in business.

Will conjugal relationship affect the corporate innovation? – Empirical evidence from a-share listed family business in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yupeng Xu ◽  
Bo Cheng ◽  
Fei Pan
Keyword(s):  
Empirical Evidence ◽  
Family Business ◽  
Family Firms ◽  
Listed Companies ◽  
Content Type ◽  
Positive Effects ◽  
Family Enterprises ◽  
Enterprise Innovation ◽  
The Impact ◽  
A Share

Purpose Few studies have focused on the impact of conjugal control and non-conjugal control on the innovation capability of family firms. In the context of the relative lack of research on the relationship between family firm heterogeneity and innovation ability, this study aims to focus on the differentiated impact of husband–wife-controlled family listed companies and non-husband–wife-controlled family listed companies on their innovation capabilities, which provides empirical evidence with more Chinese institutional and cultural characteristics for the development of corporate organizational management and innovation theories. Design/methodology/approach Taking all A-share listed family firms from 2007 to 2016 as the research sample, this paper examines the influence of spousal control on firm innovation level by empirical research method. Findings The empirical results show that compared with non-spousal-controlled family enterprises, spousal-controlled family enterprises have significant positive effects on the level of enterprise innovation. Further studies suggest that joint management of spousal-controlled family enterprises improves the level of innovation. Authority difference of the couple will weaken the innovation capacity. However, the wife’s professional skills can promote the innovation level. Originality/value Focusing on the characteristics of family internal structure and embedding marriage relationship in the enterprise organization, this paper investigates the influence of different characteristics of husband and wife and cooperation mode on enterprise innovation, and the conclusion enriches the theory of family business and family science, as well as provides important information reference for the stakeholder groups in the capital market.

Strategic Management of the Family Business: Past Research and Future Challenges

1997 ◽  
Vol 10 (1) ◽  
pp. 1-35 ◽  
Author(s):  
Pramodita Sharma ◽  
James J. Chrisman ◽  
Jess H. Chua
Keyword(s):  
Strategic Management ◽  
Family Business ◽  
Family Relationships ◽  
Family Firms ◽  
Management Practices ◽  
Past Research ◽  
Management Perspective ◽  
Future Challenges ◽  
Key Issues ◽  
And Performance

This article reviews the literature on family business from a strategic management perspective. In general, this literature is dominated by descriptive articles that typically focus on family relationships. However, the literature does not usually address how these relationships affect the performance of a family business. Taking a strategic management perspective, we outline a new set of objectives for family-business research. We also identify some of the key issues and gaps that should be explored in future studies if research is to contribute to improving the management practices and performance of family firms.

Examining the Relation Between Ethical Focus and Financial Performance in Family Firms: An Exploratory Study

2010 ◽  
Vol 23 (4) ◽  
pp. 310-326 ◽  
Author(s):  
Ernest H. O'Boyle ◽  
Matthew W. Rutherford ◽  
Jeffrey M. Pollack
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Family Involvement ◽  
Family Business ◽  
Exploratory Study ◽  
Family Firms ◽  
Research Area ◽  
Future Research ◽  
Business Studies ◽  
And Performance

Empirically, the confluence of family involvement, ethics, and performance is a sparse research area. The authors explore a rich theoretical framework relating family involvement, ethical focus, and firm performance and empirically test a mediated model using a sample of 526 family businesses. The results illustrated that a firm’s ethical focus mediated the relation between family involvement and financial performance. Specifically, data supported the relation between family involvement and a firm’s ethical focus. And increased ethical focus predicted increased financial performance. The authors discuss the implications of these findings and offer potential areas for future research in family business studies.

Contextualizing Performances of Family Firms

2011 ◽  
Vol 25 (3) ◽  
pp. 243-257 ◽  
Author(s):  
Andrea Colli
Keyword(s):  
Performance Measurement ◽  
Family Business ◽  
Family Firms ◽  
Historical Analysis ◽  
Critical Assessment ◽  
Business History ◽  
Theory Building ◽  
Potential Contribution ◽  
And Performance ◽  
The Relationship

Performances have only recently been addressed in business history research, partly because of problems concerning data quality and availability. As a consequence, performance measurement in family firms has been a neglected area in historical studies. Family business historians are thus increasingly interested in this topic. However, the longitudinal perspective adopted requires a problematical approach to the concept of performance. This article provides a critical assessment of the relationship between family firms and performance measurement from the perspective of business history and, at the same time, suggests the potential contribution of historical analysis to theory building in this field.

scholarly journals СТРАТЕГІЧНЕ УПРАВЛІННЯ ОРГАНІЗАЦІЙНОЮ КУЛЬТУРОЮ ПІДПРИЄМСТВ ПРИ РОЗВИТКУ ТА АДАПТАЦІЇ ДО ЗМІН

2020 ◽  
Vol 141 (6) ◽  
pp. 84-95
Author(s):  
Олена В. Ареф'єва ◽  
Сергій О. Ареф'єв ◽  
Альона О. Верпека
Keyword(s):  
Organizational Culture ◽  
Organizational Behavior ◽  
Corporate Culture ◽  
Control Mechanisms ◽  
Management Tools ◽  
Business Context ◽  
Values And Beliefs ◽  
And Performance ◽  
A Company ◽  
The Way

The study attempts to explore organizational culture as a set of beliefs, habits, values, attitudes, traditions, etc. among individuals and groups within any organization. In particular, it is noted that the notion of organizational culture is widely used in a business context. The way organizational culture is expressed has underpinned much of social sciences research and gained particular importance in the mid-20th century when some scholars in the field of management and organizational behavior had started actively advocating the benefits of promoting organizational culture. Thus, the research on a human aspect and human relationships in company management was previously part of sociology focus and from this perspective could be regarded as a predecessor of organizational culture. It is argued that adequate and precise identification of values, basic norms of conduct and employment procedures to be adhered to by all company employees will translate into specific organizational framework which contributes to shaping organizational culture and has dramatic impact on the way employees perceive management decisions. Individual behavior of each employee directly depends on relationships, communication and interaction they have with the rest of the group members. Hence, organizational culture can develop and improve employee capabilities on the one hand, and limit them on the other, especially when a company fails to build clear and effective corporate culture. This study views organizational culture as a set of paradigms which are formed during the organisation’s life cycle through the interaction between its members with internal structural units, strategies, systems and processes, and between the organization and its environment. This interaction suggests certain messages and links which will be valid as far as they ensure the organization’s efficiency, effectiveness and performance. The paper also describes the relationship between culture and a company strategy. A set of principles, values and beliefs shared by all employees, together with a company hierarchical structure, management levels, control mechanisms and effectiveness management tools ultimately shape the fundamental rules of employee conduct and working arrangements and indicate the focus of organisation’s strategy.

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