The cultural basis of management strategy professional vs. family business management in three countries (Ukraine, United States, American Samoa)

This dissertation empirically investigates the cultural basis for firm goal-setting and strategy by comparing values and beliefs of family-business members with that of professional managers across three countries. Family-firm literature stresses the differences between family-firm culture, goal-setting and strategy with that of professional management. Family-firm culture is said to be a resource leading to competitive advantage.; Empirical evidence was acquired using a survey instrument administered to family-firm members and bank managers in two countries, Ukraine and the U.S. as well as family-firm members and professional government workers in American Samoa. Survey culture-construct items were taken from Hofstede's culture dimensions (Power Distance and Masculinity) as well as Leung, Bond et al's. (2002) five social axiom constructs (Social Cynicism, Social Flexibility, Reward for Application, Spirituality, and Fate Control).; Specifically, this study looked for statistically significant differences between the culture of members of family-owned firms (100% family ownership) and non-family professionals within the same nation. It was also expected that there would be similarities between family-owned firms across nations in that the differences would all be in the same direction.; Results showed significant differences between family-firm members and non-family professionals in all countries. However, the Samoan government sample is not completely comparable to the bank samples of the other two countries and cannot be used in comparing direction of differences. Differences were in the same direction across the U.S. and Ukrainian samples for three constructs but were either non-significant or opposite for the other four.; Because differences in Masculinity and Fate Control were not significant for both countries, we can conclude only that Power Distance, Social Flexibility and Spirituality difference directions are potentially universal in terms of family-firm culture. These three are potential contributors to the culture-based family-firm competitive advantage discussed in management literature.