Is the Culture of Family Firms Really Different? A Value-based Model for Its Survival through Generations

The current work represents a piece of research on the family firm of the semasiological, interpretive or culture creation type. In it we carry out a comparative analysis of the organizational culture of this type of firm along with firms not considered to be family firms, using as theoretical framework generally accepted theories in business administration, such as the systems, neoinstitutional, transformational leadership, and social identity theories. Our findings confirm the existence of certain elements of culture, especially values and allow us to propose a value-based model to help family firms to survive through different family generations.     

Managerial Behavior, Entrepreneurial Style, and Small Firm Performance

Considerable effort has been devoted to identifying the general characteristics of entrepreneur; however, much of this has been conducted from a trait–based rather than from a behavioral perspective. In this study of small firms in the United Kingdom, we explored the relationships among managerial behaviors (based upon a competence model), entrepreneurial style (based on Covin and Slevin's theory), and firm type (in terms of sales growth performance). Principal components analysis of a management competence inventory identified six broad categories of managerial behavior. Regressing a measure of entrepreneurial style on these six behaviors suggested that managing culture and managing vision are related to an entrepreneurial style, while managing performance is related to a nonentrepreneurial style. Entrepreneurial style—but not managerial behavior—was associated positively with the probability that a firm would be a high–growth type. The results are discussed from the perspective of a model of small firm management that posits separate entrepreneurial, nonentrepreneurial, and generic management behaviors derived from a global competence space.     

Reframing the Debate Between Agency and Stakeholder Theories of the Firm

The conflict between agency and stakeholder theories of the firm has long been entrenched in organizational and management literature. At the core of this debate are two competing views of the firm in which assumptions and process contrast each other so sharply that agency and stakeholder views of the firm are often described as polar opposites. The purpose of this paper is to show how agency theory can be subsumed within a general stakeholder model of the firm. By analytically deconstructing the assumptions of agency theory, it is argued that agency theory: (1) must include a recognition of stakeholders; (2) requires a moral minimum to be upheld, which places four moral principles above the interests of any stakeholders, including shareholders; (3) consists of contradictory assumptions about human nature and which give rise to the equally valid assumptions of trust, honesty and loyalty to be infused into the agency relationship. In this way, stakeholder theory is argued to be the logical conclusion of agency theory. Empirical hypotheses are presented as a means to substantiate this claim.     

Explaining Firm Employment Growth: Does Location Matter?

This paper addresses the question to what extent the location of a firm can be regarded as having an influence on the performance of a firm as measured by employment growth. While in theory it is widely acknowledged that `location' should be considered as a relevant growth determinant, empirical research has so far mainly focused on firm-internal factors. The question raised in this paper is empirically verified by means of an econometric model based on a data set of circa 35,000 establishments located in the northern part of the Netherlands during the period 1994–1999. The model includes several measurements of location characteristics like the population level and growth, employment growth, spatial specialisation and cluster indicators, type of enterprise zone, and accessibility while controlling for firm-associated factors such as size, age, and business activity. Based on the fact that we find several significant coefficients we conclude that `location matters' but that the effect differs by type of economic activity.     

Organizational and environmental impact on the use of Japanese-style HRM policies in Japanese firms in the U.S.

This survey investigates the extent of Japanese-style HRM that is being adopted in Japanese-owned firms in the U.S. It focuses on organizational and environmental factors that influence the design and use of Japanese-style HRM policies in Japanese firms in the U.S. Preliminary results show that there is no single model of Japanese HRM in the U.S. Contextual factors in terms of firm size, firm age, firm type, union status firm location, corporate culture, and the degree of parent control all influence the use of Japanese-style HRM policies and practices in the U.S.© 1992 John Wiley & Sons, Inc.     

The Cultural Paradigm of the Smaller Firm

This paper presents the findings from an ethnographic study of organizational culture and shared values in four smaller firms, the outcome of which was the identification of the cultural values shared between owner–managers (OMs) and employees in each firm. The research employed Schein's conceptualization of culture as a three-layer phenomenon, consisting of surface artifacts, shared values and beliefs, and basic assumptions. The analytical technique of grounded theory was employed to process the large volume of data gathered during the extended research period. The data reveal a complex array of values in each firm, with only one firm exhibiting a homogenous culture where values are shared by all those working in the organization. In the remaining three firms, five values appear to be shared by all employees; however, this is overlaid by a pattern of subcultures differentiated by distinctive shared values. Interfirm analysis among the four firms found that the values of survival, independence, control, pragmatism, and financial prudence were shared by two or more firms. The research collectively defines these shared values as the cultural paradigm of the smaller firm.     

Toward a Common Good Theory of the Firm: The Tasubinsa Case

Tasubinsa is a “Special Employment and Occupational Center” constituted in accordance with Spanish Law where 90% of the workers have mental, sensorial or physical impairments of at least 30%. Its positive experience of more than 15 years provides entirely different responses from mainstream neoclassical theory (transaction cost theory, agency theory, and shareholder theory) to basic questions such as “What is a firm?”, “What is its purpose?”, “Who owns a firm?”, and “What do a firm’s owners seek?”. The article discusses how these different premises give rise to a distinctive corporate culture centered on the handicapped person.     

The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.     

Corporate cash holdings,uncertainty avoidance,and the multinationality of firms

We examine the relationship between uncertainty avoidance, multinationality and firm cash holdings. We develop several hypotheses from corporate finance and multinational firm theory, positing that cultural factors as well firm multinationality influence corporate cash holdings. In particular, firms in countries with high uncertainty avoidance hold more cash as a way to hedge against undesired states of nature. At the same time, firm multinationality moderates the effects culture has on the firm's holdings of liquid assets. Based on a large panel of firms in fifty countries, we present evidence consistent with these hypotheses. Firms in countries with high levels of uncertainty avoidance tend to hold more cash. Against commonly held views in cash management, the degree of multinationality of the firm is positively correlated with holdings of cash. At the same time, the effect of national culture on firm's cash holdings is lower for multinationals. These results are economically significant.     

Organizational culture,innovation, and performance: A test of Schein's model

Innovation is the key to organizational survival and therefore the study of processes that support innovation should be of interest to researchers and practitioners alike. Schein's multi-layered model of organizational culture offers a useful framework for thinking about processes that foster innovation. A defining characteristic of the model is the subtle but important distinctions between the varied “layers” of organizational culture (i.e., values and norms, artifacts and behaviors). The basic assumption of this study is that Schein's model offers a tractable explanation of cultural processes that support organizational innovation, especially in service firms. Despite the intuitive appeal and practical value of Schein's conceptual framework, empirical research in relation to the model is limited. This paper develops a rationale for an empirical model based on Schein's conceptual model; the study reports a test of an empirical model. Data collected from approximately 100 principals of law firms provides a suitable empirical context for a test of the model. The findings generally support the hypothesized relationships. A key result is how layers of organizational culture, particularly norms, artifacts, and innovative behaviors, partially mediate the effects of values that support innovation on measures of firm performance. The findings have implications for theory and practice, especially in relation to building an organizational culture within professional service firms that fosters innovative behavior.     

Tort Law and the Ethical Responsibilities of Liability Insurers: Comments from a Reinsurer’s Perspective

The aim of this article is to present the dynamics of the structure of human action to enable us to link the organizational level of institutions, norms, and culture of the firm. At the organizational level, the existing institutions and culture are the confines of our individual action. However, at the individual level, we focus on the external consequences of our acts. It is our acts that maintain social institutions and culture. The ethics of personal virtues demands an ethics of institutions, the ethics which deals with the institutional means of realizing individual ends. All individuals choose courses of action by deciding what type of life is worth living. In this view, virtue (areté) occupies a central position, defining the paradigm that each society with its institutions and norms sets as the model of life to be lived (eudiamonia).     

The Effect of Entrepreneurship Orientation on Firm Performance: A Multiple Mediation Model

Scholars have recognized the important role that entrepreneurial orientation (EO) plays in driving firm performance. However, this relationship is not yet well understood and studies have sought to examine various contingencies that might mediate or moderate this relationship. This study investigates the impact of organization behavior variables on the EO – firm performance relationship. The structural model was tested using primary data from 321 South Korean industrial firms. The results show that EO is positively related to firm performance and that adaptive organizational culture and people-centered management have a multiple mediating effect on the relationship between EO and firm performance.     

Sustainability as corporate culture of a brand for superior performance

Sustainability research highlights new challenges and opportunities for businesses. This paper reviews the literature to understand the ability of sustainable green initiatives when practiced as a corporate culture to individually create new opportunities for operations, management and marketing. According to current research, business opportunities exclusively available to different functions of a firm can drive its performance. The role of marketing in the achievement of superior performance by virtue of sustainability practices is also explained by the existing literature. Branding literature, however, fails to explain the influence of a brand on sustainability-driven opportunities available to a firm for superior performance. The objective of this study is to explore if a brand can strengthen the ability of sustainability-based green initiatives of managers to drive opportunities available to a firm for superior performance. A conceptual framework grounded in the triple bottom line theory is presented based on the assumption that brand as a stimulating factor can accelerate the conversion of opportunities available to a business into superior performance. Academic and managerial perspectives have been used to draw upon the implications of the model. Both practitioners and academic researchers will benefit from future research on this topic.     

A Resource-Based Approach to the Study of Export Performance

This paper presents a comparative study of the export performance of U.S. and Canadian small and medium-sized exporters. A parsimonious model is developed drawing on the resource-based theory of the firm, with three sets of resources, namely firm size, enterprise, and technological intensity. These key resources are good predictors of the export strategy of a firm. Export strategy is modeled as degree of internationalization, and its effect on the overall firm performance is studied using firm-level performance measures. LISREL's multiple group analysis feature is used in the analysis to test the model. The results confirm the validity of the model across the two data sets.     

CONSUMER PERCEPTION OF CORPORATE DONATIONS Effects of Company Reputation for Social Responsibility and Type of Donation

In cause-related marketing (CRM), a company agrees to donate money to a charity each time a consumer engages in a revenue-producing transaction with the firm. Since the company benefits first before any obligation to donate is accrued, consumers might perceive this practice to be less altruistic than an unconditional donation to a cause. If so, CRM could backfire, injuring corporate image. This study investigated the effects of type of donation (conditional or not conditional upon corporate revenue) and reputation of the firm making the donation (firms described as scrupulous, average, or irresponsible in the discharge of their social responsibility) on consumer regard for the firm; perceived mercenary intent of the firm; and whether the social performance of the company is consistent with "good" management. Consumer responses were predicted based on the contrast effect and attribution theory. Results suggest that irresponsible firms increased their favor with consumers by pursuing either type of donation. The average firm enhanced its image by pursuing an unconditional donation, but a conditional donation did not damage firm image. Perception of the scrupulous firm was little changed after unconditional donation, but a scrupulous firm suffered a loss of favor by pursuing CRM. It is concluded that the average firm does not risk a loss of public goodwill when using CRM.     

Uneasy Alliances: Tradition and ICT Transformation in the Value Chain

Information and Communication Technology-enabled transformation in modern organizations continues to attract managerial and academic attention. One of the less explored aspects of this kind of initiative is the impact of organizational transformations on the culture of employees and the impact of the diverse workforce cultures on transformation initiatives. Set against the backdrop of acculturation theory, this paper examines the delicate balance between aggressively modernizing the competitive profile of the firm on one hand and nurturing the firm's various organizational cultures and historical traditions on the other. We contribute to the literature by presenting a case of a large, high-profile firm that experienced the problems of disaggregated cultures arising from small business amalgamation when attempting to transform its value chain operation.     

Owner Commitment and Relational Governance in the Privately-Held Firm: An Empirical Study

This paper examines owner commitment and relational governance in the privately-held firm. The proposed model goes beyond agency theory to include research on organization commitment and organization citizenship behaviors, as well as stewardship theory, organizational social capital theory, social identity theory and social exchange theory. Results support predictions of stewardship theory and organizational social capital theory that owner commitment and firm performance are positively related.      

Inducements,Impediments, and Immediacy: Exploring the Cognitive Drivers of Small Business Managers' Intentions to Adopt Business Model Change

Small business managers rely on judgment and heuristics when making critical strategic decisions. We explore this phenomenon, expanding the theory on cognition and strategy to explain the cognitive determinants of strategic decisions leading to small firm business model change. We integrate existing theories (entrepreneurial opportunity exploitation, cognitive resilience, prospect theory, behavioral theory of the firm, threat‐rigidity) into a framework explaining strategic intentions, based on managers' perception of business opportunity interacting with assessment of the external environment, current performance, and prior experience. The framework is empirically tested in the context of Canadian real estate brokerage industry, facing potentially major disruptive change.     

企业组织跨边界机理:基于相关理论上的考察

本在分析竞争能力、技术发展、分工与专业化理论中有关企业边界及跨边界组织研究的基础上，指出核心竞争力理论可为专业化水平选择提供有益的借鉴：协作生产中的分工经济性是跨边界组织形成的必要条件；跨边界组织模式中各个企业的专业化水平选择取决于外生的由“核心技术”决定的绝对优势和比较优势；而后技术便作为内生结果与分工和专业化一起演进。     

人力资源管理系统形成影响因素的实证研究

在战略人力管理研究中,一直强调人力资源管理系统形态的形成需要和企业外部环境、企业特征和竞争战略保持匹配。在此基础上,文章建立了企业人力资源管理系统形成的影响因素模型,提出研究假设,并选取133家企业对假设进行了检验。研究发现,外部环境、企业规模对人力资源管理系统形成具有显著的影响,而人力资源管理经理是否专任和竞争战略并没有对企业人力资源管理系统形成产生显著的影响。最后,在对研究结论进行讨论的基础上,分析了研究的局限性并提出未来研究建议。