Skip to main content

Entrepreneurship and Family Business: Does the Organization Culture Affect to Firm Performance?

  • Chapter
  • First Online:
New Challenges in Entrepreneurship and Finance

Abstract

Family businesses are well known due to their entrepreneurial character and the founder’s influence, or dependence on him. These features lead them to develop specific organizational cultures. The organizational culture, if it is coherent with its family character in the structure of the ownership and the degree of professional management, will produce a specific kind of company. Consequently, it should be highly efficient and, therefore, reach good financial performance. Family owned companies with clan or adhocracy cultures are proposed as efficient organizational configurations. On the other side, those utilizing market or hierarchical organizational cultures will take the opposite direction.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Alvesson M (1993) Cultural perspectives on organizations. Cambridge University Press, Cambridge

    Google Scholar 

  • Andrews R, Baum T, Andrew MA (2001) The lifestyle economics of small tourism businesses. J Travel Tour Res 1:16–25

    Google Scholar 

  • Antoncic B, Hisrich R (2001) Intrapreneurship: construct refinement and cross-cultural validation. J Bus Ventur 16(5):495–528

    Article  Google Scholar 

  • Arogyaswamy B, Byles CM (1987) Organizational culture: internal and external fits. J Manag 13(4):647–659

    Google Scholar 

  • Barney JB (1986) Organizational culture: can it be a source of sustained competitive advantage? Acad Manage Rev 11(3):656–665

    Article  Google Scholar 

  • Basu A (2004) Entrepreneurial aspirations among family business owners: an analysis of ethnic business owners in the UK. Int J Entrep Behav Res 10:12–33

    Article  Google Scholar 

  • Burt RS, Gabbay SM, Holt G, Moran P (1994) Contingent organization as a network theory: the culture performance contingency function. Acta Sociológica 37(4):345–370

    Article  Google Scholar 

  • Cabrera K, Ayala J (2002) Órganos de gobierno y creación de valor en la Empresa Familiar. Proyectos de investigación de PricewaterhourseCoopers y la red de Cátedras del Instituto de la Empresa Familiar

    Google Scholar 

  • Cameron K, Quinn R (1999) Diagnosing and changing organizational culture. Addison-Wesley Series, New York

    Google Scholar 

  • Carrier C (1996) Intrapreneurship in small business: an exploratory study. Entrep Theory Pract 21(1):5–51

    Google Scholar 

  • Carter S (2001) Multiple business ownership in the farm sector: differentiating mono-active, diversified and portfolio enterprises. Int J Entrep Behav Res 7(2):43–59

    Article  Google Scholar 

  • Carter S, Tagg S, Ennis S, Webb J (2002) Lifting the barriers to growth in UK small businesses. Federation of Small Business, London

    Google Scholar 

  • Chandler G, Keller C, Lyon D (2000) Unraveling the determinants and consequences of an innovation-supportive organizational culture. Entrep Theory Pract 25(1):59–76

    Google Scholar 

  • Chrisman JJ, Chua J, Steier L (2002) The influence of national culture and family involvement on entrepreneurial perceptions and performance at the state level. Entrep Theory Pract 26(4):113–130

    Google Scholar 

  • Chua JH, Chrisman JJ, Sharma P (1999) Defining the family business by behavior. Entrep Theory Pract 23(4):19–39

    Google Scholar 

  • Chua JH, Chrisman JJ, Chang E (2004) Are family firms born or made? An exploratory investigation. Fam Bus Rev 17(1):37–54

    Article  Google Scholar 

  • Collins J (2002) Chinese entrepreneurs: the Chinese Diaspora in Australia. Int J Entrep Behav Res 8:113–133

    Article  Google Scholar 

  • Corbetta G, Montemerlo D (1999) Ownership, governance, and management issues in small and medium-size family businesses: a comparison of Italy and the United States. Fam Bus Rev 12(4):361–374

    Article  Google Scholar 

  • Cromie S, Adams J, Dunn B, Reid R (1999) Family firms in Scotland and Northern Ireland: an empirical investigation. J Small Bus Enterp Dev 6(3):253–266

    Article  Google Scholar 

  • Day J (2000) Commentary: the value and importance of the small firm to the world economy. Eur J Mark 34(9/10):1033–1037

    Article  Google Scholar 

  • Deal TE, Kennedy AA (1982) Corporate cultures. Addison-Weslwy, Reading

    Google Scholar 

  • Denison DR, Spreitzer G (1991) Organizational culture and organizational development: a competing-values approach. In: Woodman RW, Passmore WA (eds) Research in organizational change and development. JAI Press, Greenwich, pp 1–21

    Google Scholar 

  • Deshpandé R, Farley J, Webster FE (1993) Corporate culture, customer orientation, and innovativeness in Japanese firms: a quadrad analysis. J Mark 57(1):23–27

    Article  Google Scholar 

  • Donckels R, Frölich E (1991) Are your family businesses really different? European experiences from stratos. Fam Bus Rev 4(2):149–160

    Article  Google Scholar 

  • Dyer WG (1986) Cultural change in family firms: anticipating and managing business and family transitions. Jossey-Bass, San Francisco

    Google Scholar 

  • Florida R, Martin K (1991) Transplanted organizations: the transfer of Japanese industrial organization to the U.S. Am Sociol Rev 56(3):381–398

    Article  Google Scholar 

  • Galve C, Salas V (2003) La empresa familiar en España. Fundación BBVA, Bilbao

    Google Scholar 

  • Gómez-Mejía LR, Nuñez-Nickel M, Gutiérrez I (2001) The role of family ties in agency contracts. Acad Manage J 44(1):81–95

    Article  Google Scholar 

  • Gordon GG, Di Tomaso N (1992) Predicting corporate performance from organizational culture. J Manag Stud 29(6):783–799

    Article  Google Scholar 

  • Gersick E, Davis JA, McCollom M, Lansberg I (1997) Empresas familiares. Generación a generación. McGraw Hill, México

    Google Scholar 

  • Greenbank P (2000) Micro-business start-ups: challenging normative decision-making? Mark Intell Plan 18(4):206212

    Article  Google Scholar 

  • Gudmundson D, Burk Tower C, Hartman EA (2003) Innovation in small businesses: culture and ownership structure do matter. J Dev Entrep 8(1):1–17

    Google Scholar 

  • Hall A, Melin L, Nordqvist M (2001) Entrepreneurship as radical change in the family business: exploring the role of cultural patterns. Fam Bus Rev 14(3):193–208

    Article  Google Scholar 

  • Hofstede G (1984) Cultural dimensions in management and planning. Asia Pac J Manag 1(2):81–98

    Article  Google Scholar 

  • Jorissen A, Laveron E, Martens R, Reheul A (2005) Real versus sample-based differences in comparative family business research. Fam Bus Rev 18(3):229–247

    Article  Google Scholar 

  • Kets de Vries MFR (1993) The dynamics of family controlled firms: the good and the bad news. Organ Dyn 21(3):59–71

    Article  Google Scholar 

  • Kotter J, Heskett J (1992) Corporate culture and performance. Free Press, Nee York

    Google Scholar 

  • Kuratko D, Hodgetts R (1998) Entrepreneurship: a contemporary approach. Dryden Press, New York

    Google Scholar 

  • Lynch P (1999) Host attitudes towards guests in the homestay sector. Tour Hosp Res 1(2):119–144

    Google Scholar 

  • March JG (1991) Exploration and exploitation in organizational learning. Ann Rev Sociol 2(1):71–87

    Google Scholar 

  • McKay R (2001) Women entrepreneurs: moving beyond family and flexibility. Int J Entrep Behav Res 7(4):148–165

    Article  Google Scholar 

  • Morris MH, Schindehutte M, Walton J, Allen J (2002) The ethical context of entrepreneurship: proposing and testing a development framework. J Bus Ethics 40(4):331–361

    Article  Google Scholar 

  • Morrison A (2006) A contextualisation of entrepreneurship. Int J Entrep Behav Res 12(4):192–209

    Article  Google Scholar 

  • Morrison A, Teixeira R (2002) Small hospitality firms: business performance obstacles. Paper presented at the International Small Hospitality and Tourism firm conference, Leeds Metropolitan University, Leeds

    Google Scholar 

  • Ogbonna E, Harris L (2000) Leadership style, organizational culture and performance: empirical evidence from UK companies. Int J Human Res Manag 11(4):766–788

    Article  Google Scholar 

  • O’Reilly C, Chatman J (1986) Organizational commitment and psychological attachment: the effects of compliance, identification and internalization on prosocial behaviour. J Appl Psychol 71(3):492–499

    Article  Google Scholar 

  • Ortega Parra A, Sastre Castillo MA (2013) Impact of perceived corporate culture on organizational commitment. Manag Decis 51(5):1071–1083

    Article  Google Scholar 

  • Peters T, Waterman RH (1982) Search of excellence. Harper and Row, New York

    Google Scholar 

  • Pistrui D, Huang W, Oksoy D, Jing Z, Welsch H (2001) Entrepreneurship in China: characteristics, attributes, and family forces shaping the emerging private sector. Fam Bus Rev 14(2):141–152

    Article  Google Scholar 

  • Poza EJ, Alfred T, Maheswari A (1997) Stakeholder perceptions of culture and management practices in family and family firms – a preliminary report. Fam Bus Rev 10(2):135–155

    Article  Google Scholar 

  • Quinn RE, Spreitzer GM (1991) The psychometrics of the competing values culture instrument and an analysis of the impact of organizational culture on quality of life. In: Woodman RW, Pasmore WA (eds) Research in organizational change and development. JAI Press, Greenwich, pp 115–142

    Google Scholar 

  • Ram M, Sanghera B, Abbas T, Barlow G (2000) Training and ethnic minority firms: the case of the independent restaurant sector. Educ Train 42(4/5):334–341

    Article  Google Scholar 

  • Rienda L, Pertusa EM (2002) Una aproximación teórica a la estructura organizativa de las empresas familiares. Boletín de Estudios Económicos 57:483–499

    Google Scholar 

  • Rogoff EG, Heck RKZ (2003) Evolving research in entrepreneurship and family business: recognizing family as the oxygen that feeds the fire of entrepreneurship. J Bus Ventur 18(5):559–566

    Article  Google Scholar 

  • Rosenthal J, Masarech M (2003) High performance cultures: how values can drive business results. J Organ Excell 22(2):3–18

    Article  Google Scholar 

  • Sastre Castillo MA, Peris Ortiz M, Danvila del Valle I (2014) What is different about the profile of the social entrepreneur? Non Profit Management & Leadership (in press)

    Google Scholar 

  • Schein EH (1985) Organizational culture and leadership. Jossey-Bass, San Francisco

    Google Scholar 

  • Schulze W, Lubatkin M, Dino R, Buchholtz A (2001) Agency relationships in family firms: theory and evidence. Organ Sci 12(2):99–116

    Article  Google Scholar 

  • Schwartz H, Davis S (1981) Matching corporate culture and business strategy. Organ Dyn 10:30–48

    Article  Google Scholar 

  • Scott R (2011) Conceptualizing the international for-profit social entrepreneur. J Bus Ethics 98:183–198

    Article  Google Scholar 

  • Shaw E, Shaw J, Wilson M (2002) Unsung entrepreneurs: entrepreneurship for social gain. University of Durham Business School, Durham

    Google Scholar 

  • Smallbone D, Evans M, Ekanem I, Butters S (2001) Researching social enterprise, small business service. Department of Trade and Industry, London

    Google Scholar 

  • Smith C (2000) Managing work and family in small “copreneurial” business: an Australian study. Women Manag Rev 15(5/6):283–289

    Article  Google Scholar 

  • Snow CC, Hebriniak LG (1980) Strategy, distinctive competence, and organizational performance. Adm Sci Q 25:317–336

    Article  Google Scholar 

  • Sonrensen J (2002) The strength of corporate culture and the reliability of firm performance. Adm Sci Q 47(1):70–91

    Article  Google Scholar 

  • Sorenson ED (2000) The contribution of leadership style and practices to family and business success. Fam Bus Rev 13(3):183–200

    Article  Google Scholar 

  • Steier L (2001) Family firms, plural forms of governance, and the evolving role of trust. Fam Bus Rev 14(4):353–367

    Article  Google Scholar 

  • Stock G, McFadden K, Gowen C III (2007) Organizational culture, critical success factors, and the reduction of hospital errors. Int J Prod Econ 106(2):368–392

    Article  Google Scholar 

  • Thornton PH (1999) The sociology of entrep. Ann Rev Sociol 25(1):19–47

    Article  Google Scholar 

  • Zahra S, Hayton J, Salvato C (2004) Entrepreneurship in family vs. non-family firms: a resource based analysis of the effect of organizational culture. Entrep Theory Pract 28(4):363–381

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ignacio Danvila-del Valle .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Sánchez-Marín, G., Danvila-del Valle, I., Sastre-Castillo, Á. (2015). Entrepreneurship and Family Business: Does the Organization Culture Affect to Firm Performance?. In: Peris-Ortiz, M., Sahut, JM. (eds) New Challenges in Entrepreneurship and Finance. Springer, Cham. https://doi.org/10.1007/978-3-319-08888-4_12

Download citation

Publish with us

Policies and ethics