Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture

Shaker A. Zahra, James C. Hayton, Carlo Salvato

Research output: Contribution to journalArticle

480 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)363-379
Number of pages17
JournalEntrepreneurship: Theory and Practice
Volume28
Issue number4
DOIs
StatePublished - Jun 1 2004

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Entrepreneurship
Resource-based
Organizational culture
Family firms
Cultural dimensions
Resource-based view of the firm
Strategic resources
Competitive advantage
Cultural orientation
Decentralization
Individualism
Manufacturing companies

Cite this

Entrepreneurship in family vs. non-family firms : A resource-based analysis of the effect of organizational culture. / Zahra, Shaker A.; Hayton, James C.; Salvato, Carlo.

In: Entrepreneurship: Theory and Practice, Vol. 28, No. 4, 01.06.2004, p. 363-379.

Research output: Contribution to journalArticle

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