Dominant Logics and Strategic Renewal: The Case of Family Firms

Abstract

This paper studies the relationship between dominant logics and strategic renewal in the case of family firms. Drawing on the upper echelons theory, we conceive the social context of family firms, i.e., number of family directors and founder directors, as proxies for different dominant logics in board of directors. We argue that these two types of board composition lead to contradictory effects on strategic renewal in family firms. We also test the moderating effect of national culture, i.e., uncertainty avoidance and long-term orientation, on these relationships. Our findings show evidence of conflicting dominant logics working to influence strategic renewal under distinctive national cultural conditions.