Bridging the micro-macro gap: A multi-layer culture framework for understanding entrepreneurial orientation in family firms

Abstract

Prior research on the antecedents of entrepreneurial orientation (EO) in family firms heavily relied on structural family-level characteristics but neglected the contribution of the business system. This may inhibit the current debate as it limits our understanding of the organizational mechanisms through which “familiness” is translated into EO. To elaborate the adolescent theory of EO in family firms and motivate future work on the topic, this article seeks to bridge the micro (family)-macro (firm-level EO) gap by introducing a multi-layer culture framework. Using an interpretivist single case study design, the theoretical utility of that framework is demonstrated by capturing the lived experiences of both family and nonfamily managers involved in shaping the organizational culture of a second-generation German family firm. The model that emerged from the analysis of archival and ethnographic interview data cuts across analytical levels and illustrates, in a fine-grained manner, how the identified cultural concepts operate and interact to stimulate EO. Specifically, it shows that family values of altruism and preservation are translated into EO by an organizational culture characterized by long-term and involvement orientation as well as psychological safety and empowerment climates. The model further uncovers the specific underlying processes of cultural transmission, such as building a quasi-family, demonstrating servant leadership behaviors, providing a written self-image, and applying value-based recruitment principles.