Abstract
The results of research of the utilitarian type on the culture of the family firm is reported here. A model is built and defined on the basis of the main arguments supporting the following theories: general systems theory, neoinstitutional theory, transformational leadership theory, field theory, learning theory, and group dynamics theory. The resulting model is an instrument that can be used to deepen our understanding of the organizational culture of this type of firm. It should prove to be a powerful tool to exploit the competitive potential of this culture, which has often been noted in the literature.
Similar content being viewed by others
Notes
According to Schein (1988), the organizational culture consists of three different levels: artifacts (first level), values (second level), and assumptions (third level). A scale of perception exists from the first level to the third level. Thus, artifacts are the most clearly perceptible, while the perception of values and, especially, assumptions is more difficult. For this reason, values and assumptions are known as the two invisible levels of the organizational culture.
In general, family culture refers to the artifacts, perspectives, basic values, and assumptions shared by the members of a particular family (Dyer 1986).
The regulative pillar of institutions provides explicit guidance to organizational members about rules, controls, rewards, and sanctions (Scott, 1995a), so it does not contribute to explaining the flow of values and their cognition from the family to the family business like the other two pillars.
In family firms, this mode of getting the institutional elements is different because their members are exposed to two socialization processes of a family nature—the socialization process of their own families and the socialization process of the owning family of the firm—and also because the literature considers the family to be the most important socialization agent (Macionis and Plumier 1999). From an organizational perspective, the main goal of socialization is just to make the new members understand the organizational culture defined in terms of its shared values (Chatman 1991; Bauer et al. 1998).
Although McGregor (1960) does not speak about trust specifically or directly, he does so indirectly when he notes that the organizational structure must be based on cooperation and mutual support, since trust is the key issue in most of the specialized literature on cooperation in organizational and inter-organizational relationships (see Gambetta 1988; Jung and Avolio 2000; Korsgaard et al. 2002).
Kim (1993) distinguishes between individual mental models and shared mental models. Individual mental models are described as deeply held internal images of how the world works that have a powerful influence on what we do because they also affect what we see. Shared mental models are described as thought constructs that affect the way organizations see how the world works and how they operate in the world.
References
Abrams, D., & Hogg, M. (1998). Prospects for research in group processes and intergroup relations. Group Processes and Intergroup Relations, 1, 7–20.
Adams, J., Tashchian, A., & Shore, T. (1996). Ethics in family and non-family owned firms: An exploratory study. Family Business Review, 9, 157–170.
Ahlstrom, D., & Bruton, G. (2001). Learning from successful local private firms in China: Establishing legitimacy. Academy of Management Executive, 15, 72–83.
Ainsworth, S., & Wolfram, J. (2003). Families divided: Culture and control in small family business. Organization Studies, 24, 1463–1485.
Allen, N., & Meyer, J. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63, 1–18.
Anderson, R., & Reeb, D. (2003). Founding family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58, 1301–1329.
Aronoff, C. (2004). Self-perpetuation family organization built on values: Necessary condition for long-term family business survival. Family Business Review, 17, 55–59.
Aronoff, C., & Ward, J. (1993). How families work together. Marietta: Business Owner Resources.
Aronoff, C., & Ward, J. (1995). Family-owned business: A thing of the past or a model of the future? Family Business Review, 8, 121–130.
Astrachan, J. (1988). Family firm and community culture. Family Business Review, 1, 165–189.
Bandura, A. (1982). Teoría del aprendizaje social. Madrid: Espasa Calpe.
Bandura, A. (1986). Social foundations of thought and action: A social-cognitive view. Englewood Cliffs: Prentice Hall.
Bandura, A., & Walters, R. (1959). Adolescent aggression. New York: Ronald Press.
Bass, B. (1985). Leadership performance beyond expectations. New York: Academic Press.
Bass, B. (1997). Does the transactional-transformational paradigm transcend organizational and national boundaries? American Psychologist, 52, 130–139.
Bass, B. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8, 9–32.
Bass, B., & Steidlmeier, P. (1999). Ethics, character and authentic transformational leadership behavior. Leadership Quarterly, 10, 181–217.
Bauer, T., Morrison, E., & Callister, R. (1998). Organizational socialization: A review of directions and future research. In G. Forris (Ed.), Research in personnel and human resources management (pp. 149–214). Greenwich: JAI Press.
Baum, J., & Oliver, C. (1991). Institutional linkages and organizational mortality. Administrative Science Quarterly, 36, 187–216.
Bennis, W., & Goldsmith, J. (1997). Learning to lead: A workbook on becoming a leader. Reading: Addison-Wesley.
Bluedorn, A., & Lundgren, E. (1993). A culture-match perspective for strategic change. Research in Organizational Change and Development, 7, 137–139.
Burke, R. (2001). Organizational values, work experiences and satisfactions among managerial and professional women. Journal of Management Development, 20, 346–354.
Burns, J. (1978). Leadership. New York: Harper Row.
Bush, A., Smith, R., & Martin, C. (1999). The influence of consumer socialization variables on attitude toward advertising: A comparison of African-Americans and Caucasians. Journal of Advertising, 28, 13–24.
Casey, A. (2005). Enhancing individual and organizational learning. Management Learning, 36, 131–147.
Chatman, J. (1991). Matching people and organizations: Selection and socialization in public accounting firm. Administrative Science Quarterly, 36, 459–484.
Churchill, N., & Hatten, K. (1987). Non-market-based transfers of wealth and power: A research framework for family businesses. American Journal of Small Business, 12, 53–66.
Collins, J., & Porras, J. (1996). Empresas que perduran. Barcelona: Paidós.
Cox, T., Lobel, S., & Mcleod, P. (1991). Effects of ethnic group cultural differences on cooperative and competitive behavior on a group task. Academy of Management Journal, 34, 827–847.
D’aunno, T., Sutton, R., & Price, H. (1991). Isomorphism and external support in conflicting institutional environments: A study of drug abuse treatment units. Academy of Management Journal, 34, 636–661.
Daily, C., & Dollinger, M. (1992). An empirical examination of ownership structure in family and professionally managed firms. Family Business Review, 5, 117–136.
Danco, L. (1975). Beyond survival. Cleveland: Center for Family Business.
Danes, S., Rueter, M., Kwon, H., & Doherty, W. (2002). Family FIRO model: An application to family business. Family Business Review, 15, 31–43.
De La Calle, C., & Maeztu, I. (2000). El Compromiso y la Flexibilidad en la Gestión de los Recursos Humanos. In: Proceedings of the XIV National Congress, X Spanish-French Congress of AEDEM (pp. 485–492), Jaén.
De Quijano, S., Navarro, J., & Cornejo, J. (2000). Un Modelo Integrado de Compromiso e Identificación con la Organización: Análisis del Cuestionario ASH-ICI. Revista de Psicología Social Aplicada, 10, 27–60.
De Visscher, F., Aronoff, C., & Ward, J. (1995). Financing transitions: Managing capital and liquidity in the family business. Family business leadership series. Marietta: Business Owner Resources.
Denison, D. (1984). Bringing corporate culture to the bottom line. Organizational Dynamics, 13, 4–22.
Denison, D., Colleen, L., & Ward, J. (2004). Culture in family-owned enterprises: Recognizing and leveraging unique strengths. Family Business Review, 17, 61–70.
Dimaggio, P., & Powell, W. (1991). Introduction. In W. Powell & P. DiMaggio (Eds.), The new institutionalism in organizational analysis (pp. 1–38). Chicago: University of Chicago Press.
Dobni, D., & Ritchie, J. (2000). Organizational values: The inside view of service productivity. Journal of Business Research, 47, 91–107.
Donckels, R., & Fröhlick, E. (1991). Are family business really different? European experiences from STRATOS. Family Business Review, 4, 149–160.
Dyer, W. (1986). Cultural change in family firms: Anticipating and managing business and family traditions. San Francisco: Jossey-Bass.
Eddleston, K., Otondo, R., & Kellermanns, F. (2008). Conflict, participative decision-making and generational ownership dispersion: A multilevel analysis. Journal of Small Business Management, 46, 457–485.
Ellemers, N. (2001). Social identity, commitment and work behavior. In M. Hogg & D. Terry (Eds.), Social identity process in organizational contexts (pp. 101–114). Philadelphia: Psychology Press, Taylor and Francis Group.
Fairclough, G. (1998). Culture clashes after combinations spur a new brand of due diligence. Wall Street Journal, p. A1.
Fey, C., & Denison, D. (2003). Organizational culture and effectiveness: Can American theory be applied in Russia? Organization Science, 14, 686–706.
Fiol, C., Harris, D., & House, R. (1999). Charismatic leadership: Strategies for effecting social change. Leadership Quarterly, 10, 449–482.
Gallo, M. (1993). Cultura en Empresa Familiar. In M. Gallo (Ed.), La Empresa Familiar 4 (pp. 225–249). Barcelona: IESE, Publicaciones de la Cátedra de Empresa Familiar.
Gallo, M. (1995). La Empresa Familiar. Textos y Casos. Barcelona: Praxis.
Gallo, M., & Vilaseca, A. (1996). Finance in family business. Family Business Review, 9, 387–402.
Gallo, M., Tàpies, J., & Cappuyns, K. (2004). Comparison of family and non family business: Financial logic and personal preferences. Family Business Review, 17, 303–318.
Gambetta, D. (1988). Can we trust? In D. Gambetta (Ed.), Trust: Making and breaking cooperative relations (pp. 213–237). Oxford: Basil Blackwell.
Gersick, K., Davis, J., McCollom, M., & Lansberg, I. (1997). Empresas familiares, generación a generación. México: McGraw-Hill.
Goffee, R., & Scase, R. (1985). Proprietorial control in family firms: Some Functions of quasiorganic management systems. Journal of Management Studies, 22, 54–68.
Habbershon, T., & Williams, M. (1999). A resource-based framework for assessing the strategic advantages of family firms. Family Business Review, 12, 1–26.
Hall, P. (1988). A historical overview of family firms in the Unites States. Family Business Review, 1, 51–68.
Hater, J., & Bass, B. (1988). Superiors’ evaluations and subordinates’ perceptions of transformational and transactional leadership. Journal of Applied Psychology, 73, 695–702.
Henry, J. (2006). Organizational culture and performance measurement systems. Accounting, Organizations and Society, 31, 77–103.
Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills: Sage Publications.
Hofstede, G. (1991). Cultures and organizations: Software of the mind. Intercultural cooperation and its importance for survival. London: McGraw-Hill.
Hogg, M. (2000). Social identity and self categorization processes in organizational contexts. Academy of Management Review, 25, 121–140.
Hogg, M. (2001). A social identity theory of leadership. Personality and Social Psychology Review, 5, 184–200.
Hosmer, L. (1995). Trust: The connecting link between organizational theory and philosophical ethics. Academy of Management Review, 20, 379–403.
Iles, P., Foster, A., & Tinline, G. (1996). The changing relationship between work commitment, personal flexibility and employability: An evaluation of field experiment in executive development. Journal of Managerial Psychology, 11, 18–35.
Jiatao-Li, X., & Pillutla, M. (2002). Multi-cultural leaders teams and organizational identification in international joint ventures. International Journal of Human Resource Management, 13, 320–337.
Johnson, R., & Marakas, G. (2000). Research report: The role of behavioral modeling in computer skills acquisition. Toward Refinement of the Model. Information Systems Research, 11, 402–417.
Jung, D., & Avolio, B. (2000). Opening the black box: An experimental investigation of the mediating effects of trust and value. Journal of Organizational Behavior, 21, 949–965.
Kark, R., Shamir, B., & Gilad, C. (2003). The two faces of transformational leadership: Empowerment and dependency. Journal of Applied Psychology, 88, 246–255.
Kast, F., & Rosenzweig, J. (1987). Administración en las organizaciones. Enfoque de sistemas y contingencias, 4ª edición. México: McGraw-Hill.
Kets De Vries, M. (1993). The dynamics of family controlled firms. The good news and the bad news. Organizational Dynamics, 21, 59–71.
Kim, D. (1993). The link between individual and organizational learning. Sloan Management Review, Fall, 37–50.
Korsgaard, M., Brodt, S., & Whitener, E. (2002). Trust in the face of conflict: The role of managerial trustworthy behavior and organizational context. Journal of Applied Psychology, 87, 312–319.
Kotter, J., & Heskett, J. (1995). Cultura de empresa y rentabilidad. Madrid: Díez de Santos.
Kuratko, D., Hornsby, J., & Naffziger, D. (1997). An examination of owner’s goals in sustaining entrepreneurship. Journal of Small Business Management, 35, 24–35.
Kwon, U., Beatty, S., & Lueg, J. (2000). Organizational values, work norms and relational role behaviours: An empirical retail assessment. International Review of Retail, Distribution and Consumer Research, 10, 401–416.
Lachapelle, K., & Barnes, L. (1998). The trust catalyst in the family-owned business. Family Business Review, 11, 1–18.
Lawrence, T. (1999). Institutional strategy. Journal of Management, 25, 161–188.
Leach, P. (1993). La Empresa Familiar. Barcelona: Granica.
Lee, J. (2006). Family firm performance: Further evidence. Family Business Review, 19, 103–114.
Lee, C., & Chen, W. (2005). The effects of internal marketing and organizational culture on knowledge management in the information technology industry. International Journal of Management, 22, 661–672.
Lyman, A. (1991). Customer service: Does family ownership make a difference? Family Business Review, 4, 303–324.
Macionis, J., & Plumier, K. (1999). Sociología. Madrid: Prentice-Hall.
Martín, R., & Epitropaki, O. (2001). Role of organizational identification on implicit leadership theories (ILTs), influences of self-deception and self-efficacy. Group Processes and Intergroup Relations, 4, 247–262
Martínez, R., & Dacin, T. (1999). Efficiency motives and normative forces: Combining transaction costs and institutional logic. Journal of Management, 25, 75–96.
Masi, R., & Cooke, R. (2000). Effects of transformational leadership on subordinate motivation, empowering norms and organizational productivity. International Journal of Organizational Analysis, 8, 16–57.
McConaughy, D., & Philips, G. (1999). Founders versus descendants: The profitability, efficiency, growth. Characteristics and financing in large, public, founding family-controlled firms. Family Business Review, 12, 123–132.
McConaughy, D., Walker, M., Henderson, G., & Mishra, C. (1995). Founding family controlled firms: Efficiency and value. In Paper presented at the European Financial Management Association.
McGrath, J., Arrow, H., & Berdahl, J. (2000). The study of groups: Past, present and future. Personality and Social Psychology-Review, 4, 95–105.
McGregor, D. (1960). The human side of enterprise. New York: McGraw-Hill.
Meyer, J., & Allen, N. (1984). Testing the side-bet theory of organizational commitment: Some methodological considerations. Journal of Applied Psychology, 69, 372–378.
Meyer, J., & Allen, N. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1, 61–89.
Meyer, J., & Allen, N. (1997). Commitment in the workplace. Theory, research and application. Thousand Oaks: Sage Publications.
Meyer, J., & Rowan, B. (1977). Institutionalized organizations: Formal structure, myth and ceremony. American Journal of Sociology, 83, 340–363.
Miller, N., Fitzgerald, M., Winter, M., & Paul, J. (1999). Exploring the overlap of family and business demands: Household and family business managers’ adjustment strategies. Family Business Review, 12, 253–268.
Morrow, P. (1993). The theory and measurement of work commitment. Greenwich: Jai Press.
Moscetello, L. (1990). The Pitcairns want you. Family Business Magazine, February, 3–15.
Neubauer, F., & Lank, A. (1998). The family business: Its governance for sustainability. Hampshire: McMillan Business.
Ogbonna, E., & Harris, L. (2000). Leadership style, organizational culture and performance: Empirical evidence from the UK companies. International Journal of Human Resource Management, 11, 766–788.
Ogbonna, E., & Harris, L. (2002). Organizational culture: A ten year, two phase study of change in the UK food retailing sector. Journal of Management Studies, 39, 673–707.
Oliver, C. (1991). Strategic responses to institutional processes. Academy of Management Review, 16, 145–179.
Pervin, A. (1997). A conversation with Henry Mintzberg. Family Business Review, 10, 185–198.
Pillai, R., & Williams, E. (2004). Transformational leadership, self-efficacy, group cohesiveness, commitment and performance. Journal of Organizational Change Management, 17, 144–159.
Poutziouris, P. (2001). The views of family companies on venture capital: Empirical evidence from the UK small to medium-size enterprising economy. Family Business Review, 14, 277–291.
Powell, W. (1991). Expanding the scope of institutional analysis. In W. Powell & P. DiMaggio (Eds.), The new institutionalism in organizational analysis (pp. 183–203). Chicago: University of Chicago Press.
Poza, E. (1995). A la Sombra del Roble: la Empresa Privada Familiar y su Continuidad. Ohio: Editorial Universitaria para la Empresa Familiar.
Poza, E., Alfred, T., & Maheshwari, A. (1997). Stakeholder perceptions of culture and management practices in family and family firms—A preliminary report. Family Business Review, 10, 135–156.
Raelin, J. (2001). Public reflection as the basis of learning. Management Learning, 32, 11–30.
Ravasi, D., & Schultz, M. (2006). Responding to organizational identity threats: Exploring the role of organizational culture. Academy of Management Journal, 49, 433–458.
Riordan, D., & Riordan, M. (1993). Field theory: An alternative to systems theories in understanding the small family business. Journal of Small Business Management, 31, 66–78.
Robinson, S., & O’Leary-Kelly, A. (1998). Monkey see, monkey do: The influence of work groups on the antisocial behavior of employees. Academy of Management Journal, 41, 658–672.
Rosenblatt, P., Demik, L., Anderson, R., & Johnson, P. (1985). The family in business: Understanding and dealing with the challenges entrepreneurial families face. San Francisco: Jossey-Bass.
Sathe, V. (1985). How to decipher and change corporate culture? In R. Kilman, M. Saxton, R. Serpa, & Associates (Eds.), Gaining control of corporate culture (pp. 230–261). San Francisco: Jossey-Bass.
Scase, R., & Goffe, R. (1980). The real world of the small business owner. London: Groom Helm.
Schein, E. (1988). La Cultura Organizacional y el Liderazgo: Una Visión Dinámica. Barcelona: Plaza y Janés.
Schein, E. (1996). Culture: The missing concept in organization studies. Administrative Science Quarterly, 41, 229–240.
Scott, W. (1995a). Institutions and organizations. Thousands Oaks: Sage Publications.
Scott, W. (1995b). Introduction: Institutional theory and organizations. In: W. Scott & S. Christensen (Eds.), The institutional construction of organizations (pp. 11–23). Thousands Oaks: Sage Publications.
Shamir, B., House, R., & Arthur, M. (1993). The motivational effects of charismatic leadership: A self-concept theory. Organization Science, 4, 1–17.
Shaw, M. (1994). Dinámica de grupo: Psicología de la conducta de los pequeños grupos. Barcelona: Herder.
Shaw, R. (1997). Trust in the balance. San Francisco: Jossey-Bass.
Simon, H. (1997). Líderes en la sombra. Barcelona: Planeta.
Smith, E., Murphy, J., & Coats, S. (1999). Attachment to groups: Theory and measurement. Journal of Personality and Social Psychology, 77, 94–110.
Sorensen, J. (2002). The strength of corporate culture and the reliability of firm performance. Administrative Science Quarterly, 47, 70–91.
Sorenson, R. (1999). Conflict management strategies used by successful family business. Family Business Review, 13, 183–200.
Sorenson, R. (2000). The contribution of leadership style and practices to family and business success. Family Business Review, 13, 183–200.
Sosik, J. (1997). Effects of transformational leadership and anonymity on idea generation in computer-mediated groups. Group and Organization Management, 22, 460–487.
Sosik, J., Potosky, D., & Jung, D. (2002). Adaptive self-regulation: Meetings others’ expectations of leadership and performance. The Journal of Social Psychology, 142, 211–232.
Sparks, J., & Schenk, J. (2001). Explaining the effects of transformational leadership: An Investigation of the effects on subordinates. Journal of Organizational Behavior, 22, 849–867.
St. James, H. (1999). What can the family contribute to business? Examining contractual relationships. Family Business Review, 12, 61–72.
Steier, L. (2001). Family firms, plural forms of governance, and evolving role of trust. Family Business Review, 14, 353–368.
Stinnett, N. (1983). Strong families: A portrait. In D. Mace (Ed.), Prevention in family services (pp. 27–38). Beverly Hills: Sage.
Stinnett, N. (1986). Building family strengths: A manual for families. Lincoln: University of Nebraska.
Stinnett, N. (1992). Strong families. In J. Hemslin (Ed.), Marriage and family in a changing society (pp. 496–506). New York: The Free Press.
Tagiuri, R., & Davis, J. (1992). On the goals of successful family companies. Family Business Review, 5, 43–62.
Tagiuri, R., & Davis, J. A. (1996). Bivalent attributes of the family firm. Family Business Review, 9, 199–208.
Tajfel, H., & Turner, J. (1985). The social identity theory of intergroup behavior. In S. Worchel & W. Austin (Eds.), Intergroups psychology relations (2nd ed., pp. 7–24). Chicago: Nelson Hall.
Trostel, A., & Nichols, M. (1982). Private-held and publicly-held companies: A comparison of strategic choices and management processes. Academy of Management Journal, 25, 47–62.
Viator, R. (2001). The relevance of transformational leadership to nontraditional accounting services: Information systems assurance and business consulting. Journal of Information Systems, 15, 99–125.
Viedma, J. (1990). La excelencia empresarial española. Barcelona: Viama Editors.
Walumbwa, F., Wang, P., Lawler, J., & Shi, K. (2004). The role of collective efficacy in the relations between transformational leadership and work outcomes. Journal of Occupational and Organizational Psychology, 77, 515–530.
Ward, J. (1988). The special role of strategic planning for family businesses. Family Business Review, 1, 105–117.
Ward, J. (1991). Creating effective boards for private enterprises: Meeting the challenges of continuity and competition. San Francisco: Jossey Bass.
Ward, J., & Aronoff, G. (1991). Trust gives you the advantage. Nation’s Business, 79, 42–44.
Yammarino, F., & Bass, B. (1990). Long term forecasting of transformational leadership and its effects among naval officers: Some preliminary findings. In: K. Clark & M. Clark (Eds.), Measures of leadership (pp. 151–170). West Orange: Leadership Library of América.
Zucker, L. (1977). The role of institutionalization in cultural persistence. American Sociological Review, 42, 726–743.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Vallejo, M.C. A model to study the organizational culture of the family firm. Small Bus Econ 36, 47–64 (2011). https://doi.org/10.1007/s11187-009-9175-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11187-009-9175-9
Keywords
- Family firm
- Group dynamics
- Learning theory
- Neoinstitutionalism
- Organizational culture
- Transformational leadership
- Values