ORGANIZATIONAL CLIMATE AS ANTECEDENT OF ENTREPRENEURIAL ORIENTATION IN MEXICAN FAMILY FIRMS
Imanol Belausteguigoitia, Instituto Tecnológico Autónomo de México
Principal Topic
There is an increasing interest in understanding the family business, because of its importance to the economy and social relations. It is well known that mature family firms face difficulties in continuing to grow, and some of the explanations for this phenomenon are linked to the loss of entrepreneurial orientation. One of the models that explains the lack of ability for these organizations to grow is the Plateau Effect. It describes the process of stagnation experienced by family firms, but does not gives clues of factors causing it. The current research will focus on organizational climate variables that, according to the literature, might produce this deceleration.
Method
This empirical study surveys 317 Directors, Managers and Supervisors of Mexican Firms (Family Firms and non-Family Firms). Structural Model Equations (SEM, using AMOS3.6) was used. The model explains the causal relationship between six organizational climate factors (antecedents) and five dimensions of entrepreneurial orientation (consequences). Analysis of Variance and Pearson´s Correlations were used to determine differences between groups (mainly family and non- family businesses) and to identify the association between diverse variables.
Results and Implications
As expected, according to Pearson´s Correlations, the six organizational climate factors: 1) supportive management, 2) clear role expectations, 3) safe self-expression, 4) perception that one’s work significantly affects organizational processes and outcomes, 5) belief that the organization appreciates and recognizes one’s effort and contribution, and 6) challenging work that requires the use of creativity and a variety of skills, are positively associated to entrepreneurial orientation factors (autonomy, proactivity, risk taking, innovation, and competitive aggressiveness) . According to SEM results, all factors (six) of organizational climate significantly affect at least two of five entrepreneurial orientation factors in Mexican Firms (Family and non family firms).Safe self-expression was the only one that was linked to all entrepreneurial orientation factors, and its regression weights were the highest of all. According to the results of this study the safe self-expression dimension is the most significant variable that explains entrepreneurial orientation in Mexican Firms. In the case of Family Firms, to enhance the entrepreneurial orientation of younger generations, the firms should provide a safe self-expression environment for them.
CONTACT: Imanol Belausteguigoitia, Instituto Tecnológico Autónomo de México, Av. Camino a Santa Teresa 930. Col. Héroes de Padierna. C.P. 10700 México, D.F.; (T) +52-55-56284000, ext. 6522; (F) +52-54904665; imanol@itam.mx
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