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Journal of Business Ethics

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01-01-2015

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

Authors: M. Carmen Ruiz Jiménez, Manuel Carlos Vallejo Martos, Rocío Martínez Jiménez

Published in: Journal of Business Ethics | Issue 2/2015

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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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Title: Organisational Harmony as a Value in Family Businesses and Its Influence on Performance
Authors: M. Carmen Ruiz Jiménez
Manuel Carlos Vallejo Martos
Rocío Martínez Jiménez
Publication date: 01-01-2015
Publisher: Springer Netherlands
Published in: Journal of Business Ethics / Issue 2/2015
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-013-1941-6

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