Culture of family commitment and strategic flexibility: Moderating effect of stewardship, Entrepreneurship Theory & Practice
The ability of family firms to identify and respond to changes in their external environments can be a key source of competitive advantage leading to success and survival. Some research, however, has suggested family firms are conservative and often lack the ability to adapt to their changing competitive environments. Using data from 248 family firms, we found a family firm's culture of commitment to the business is positively associated with its strategic flexibility—the ability to pursue new opportunities and respond to threats in the competitive environment. Further, we found stewardship-oriented organizational culture positively moderated the family commitment-strategic flexibility relationship.
Craig, B. Justin. 2008. Culture of family commitment and strategic flexibility: Moderating effect of stewardship. Entrepreneurship Theory & Practice. 32: 1035-1054.