Effects of organisational culture on organisational innovation performance in family firms

Sylvie Laforet (Glasgow Caledonian University, Glasgow, UK)

Journal of Small Business and Enterprise Development

ISSN: 1462-6004

Publication date: 16 May 2016

Abstract

Purpose

The purpose of this paper is to examine the effects of organisational culture (OC) on organisational innovation performance (OIP) in family small and medium-sized enterprises (SMEs). It seeks to establish the type of culture that lead to high innovation performance in family firms.

Design/methodology/approach

A postal survey of family SMEs across sectors in the UK is conducted. The study employs multiple regression analyses to test which family business culture has an effect on OIP. Among the family business cultures tested are: an external cultural orientation, a flexible and open OC as well as an organisational climate based on open communication and trust, the founder culture, and a long-term cultural orientation.

Findings

The findings show that a paternalistic and founder culture type do not have a positive effect on family firm innovation performance, but an entrepreneurial-like culture does, i.e. one that is externally oriented, flexible, proactive (refer to an open culture) and long-term oriented. Similarly, an inward focus culture such as, the founder culture impedes innovation; while an outward focus culture such as, an external orientation culture has a positive effect on family firm innovation performance.

Originality/value

This study makes valuable contributions to the understanding of theory and practices of innovation in family businesses. It provides future research directions.

Keywords

Citation

Laforet, S. (2016), "Effects of organisational culture on organisational innovation performance in family firms", Journal of Small Business and Enterprise Development, Vol. 23 No. 2, pp. 379-407. https://doi.org/10.1108/JSBED-02-2015-0020

Download as .RIS

Publisher

:

Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.