Organisational Harmony as a Value in Family Businesses and Its Influence on Performance

Journal of Business Ethics 126 (2):1-14 (2015)
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Abstract

The aims of this research were twofold: first, to compare the levels of organisational harmony between family and non-family firms and, second, to study the influence of organisational harmony on family firms’ performance (profitability, longevity and group cohesion). Starting from a definition of organisational harmony as a value and considering the importance of the management of organisational values, we use the main topics indicated by the general literature (organisational climate, trust and participation) to analyse organisational harmony, as well as three other topics for performance (profitability, survival and group cohesion). Results indicate that family firms have higher levels of these three qualities than non-family firms, and that the levels of trust, participation and organisational climate have a positive and significant influence on the performance of family firms. These results can be understood as a consequence of the influence of family social capital on organisational social capital and so on the performance of family businesses. From the perspective of institutionalism, the higher levels of harmony existing in family businesses are a reflection of the pressures that the owning family as an institution exercises on the organisational social capital in its companies

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Corporate Social Performance in Family Firms.Sara A. Morris - 2005 - Proceedings of the International Association for Business and Society 16:154-159.

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J. Martinez
Universidad Nacional Autonoma de Mexico

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References found in this work

The nature of human values.Milton Rokeach - 1973 - New York,: Free Press.
The confucian ideal of harmony.Chenyang Li - 2006 - Philosophy East and West 56 (4):583-603.
Managing by values: a corporate guide to living, being alive, and making a living in the 21st century.Simon L. Dolan - 2006 - New York: Palgrave-Macmillan. Edited by Salvador Garcia & Bonnie Richley.

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