Entrepreneurship in Family vs. Non-Family Firms: A Resource-Based Analysis of the Effect of Organizational Culture
Author(s)
Zahra, Shaker A.; Hayton, James C.; Salvato, Carlo
Abstract
Organizational culture is an important strategic resource that family firms can use to gain a competitive advantage. Drawing upon the resource-based view (RBV) of the firm, this study examines the association between four dimensions of organizational culture in family vs. non-family businesses and entrepreneurship. Using data from 536 U.S. manufacturing companies, the results show a nonlinear association between the cultural dimension of individualism and entrepreneurship. Further, there are positive linear relationships between entrepreneurship and an external orientation, an organizational cultural orientation toward decentralization, and a long- versus short-term orientation. With the exception of an external orientation, each of these dimensions is significantly more influential upon entrepreneurship in family firms when compared with non-family firms.
