Organizational Culture. A Family Firm’s Perspective

Table of Contents

1. INTRODUCTION

1.1. Aims

1.2. Relevance

1.3. Structure

2. THE FAMILY FIRM

2.1. The F-PEC scale

2.1.1. The power dimension

2.1.2. The experience dimension

2.1.3. The culture dimension

2.2. The F-PAC scale – resume

2.3. Usage

2.4. Theories used in family firm research

2.4.1. The agency theory

2.4.2. The stewardship theory

2.4.3. Resource based view

2.5. The family firm – resume

3. ORGANIZATIONAL CULTURE

3.1. Organizational culture – according to Edgar H. Schein

3.1.1. Schein’s levels of culture

3.2. Organizational culture – according to Mats Alvesson

3.3. Organizational culture – according to Joanne Martin

4. CHARACTERISTICS OF A FAMILY FIRMS’ ORGANIZATIONAL CULTURE

4.1. The role of the founder

4.2. The strength of culture

4.3. Entrepreneurship and the family firm

4.3.1. Short- vs. long-term orientation

4.3.2. Individual vs. group cultural orientation

4.3.3. Internal vs. external cultural orientation

4.3.4. Coordination vs. control

4.4. Organizational culture and performance

4.5. Family systems’ influence on family firms

5. HYPOTHESES APPLICATION

6. CONCLUSION

7. LIMITATIONS

8. PERSONAL OPINION

Objectives and Topics

This thesis aims to provide a comprehensive theoretical framework for conducting empirical studies on the relationship between family businesses and their organizational culture. The central research objective is to synthesize literature on family firm definitions, organizational culture theories, and the interplay between family systems and business structures to facilitate future empirical investigations.

• The definition and characterization of family firms using the F-PEC scale.
• Theoretical foundations of organizational culture (Schein, Alvesson, Martin).
• The role of founders and cultural strength in family-owned businesses.
• The link between organizational culture, performance, and entrepreneurship.
• The systemic influence of family dynamics and paradoxes on firm management.

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Summary of Chapters

1. INTRODUCTION: Outlines the aims of the thesis, the relevance of family businesses in the global economy, and the overall structure of the research.

2. THE FAMILY FIRM: Examines the definition dilemma of family firms, introduces the F-PEC scale, and discusses foundational theories like agency theory, stewardship theory, and the resource-based view.

3. ORGANIZATIONAL CULTURE: Provides an overview of organizational culture perspectives based on the works of Schein, Alvesson, and Martin, highlighting different ways to conceptualize and study culture.

4. CHARACTERISTICS OF A FAMILY FIRMS’ ORGANIZATIONAL CULTURE: Connects cultural theory to family business realities, focusing on the role of the founder, cultural strength, entrepreneurship, and the impact of the family system.

5. HYPOTHESES APPLICATION: Proposes practical ways to apply the constructed hypotheses within future empirical studies, categorized by the research focus.

6. CONCLUSION: Summarizes the theoretical framework and acknowledges the challenges of empirically studying the intersection of family and business systems.

7. LIMITATIONS: Discusses the inherent difficulties in building a valid framework due to the lack of uniform definitions and the potential for subjective interpretation.

8. PERSONAL OPINION: Offers personal reflections based on the author's upbringing in a family firm and concludes on the metaphor of the firm as a body with a "soul."

Keywords

Family business, Organizational culture, F-PEC scale, Agency theory, Stewardship theory, Resource based view, Entrepreneurship, Founder, Cultural strength, Family systems, Relational contracts, Human capital, Social capital, Patient financial capital, Organizational performance

Frequently Asked Questions

What is the core subject of this thesis?

The thesis explores the intersection of organizational culture and family business, focusing on how unique family-related dynamics influence the culture, performance, and entrepreneurial behavior of the firm.

What are the central thematic areas?

The main themes include defining family firms, understanding organizational culture through established frameworks, exploring the role of founders, and analyzing the impact of the family system on business operations.

What is the primary goal of the work?

The objective is to establish a robust theoretical background and a framework of hypotheses that can guide future empirical studies on family firm cultures.

Which scientific methods are employed?

The work utilizes a literature-based, qualitative approach, synthesizing existing academic research to construct hypotheses that characterize family firms versus non-family firms.

What topics are covered in the main body?

The main body addresses theories of family firm research, organizational culture frameworks, the characteristics of family firm culture, and the systemic paradoxes inherent in family-owned businesses.

Which keywords characterize this work?

Key terms include family business, organizational culture, F-PEC scale, agency theory, stewardship theory, entrepreneurship, and family system paradoxes.

How does the author define a "family firm" in this context?

The author notes the lack of a universal definition but uses the F-PEC scale as a key tool for measuring family influence through power, experience, and culture dimensions.

How do stewardship and agency theories differ within this study?

Agency theory focuses on self-serving behaviors and control mechanisms, whereas stewardship theory emphasizes collectivistic, pro-organizational behavior based on trust and shared values.

What paradoxes arise from the three-circle model in family firms?

Paradoxes include conflicts between family emotions and business task-orientation, historical traditions versus the need for innovation, and the balancing of shareholder profit goals with family survival needs.