Types Of Organizational Culture Research Articles

Organizational Culture and Individual Innovativeness among Employees Working in an MNC

Abstract: This study aims to explore the relationship between different organizational culture types (Adhocracy, Clan, Hierarchy, and Market) based on the Competing Values framework and individual innovativeness of employees working in an MNC. The data was collected from 150 participants who were employed in MNC. The questionnaires used in the study were OCAI scale (Cameron & Quinn, 2006) and Individual Innovativeness Scale (Hurt et al., 1977). Results revealed that Adhocracy, Clan, and Hierarchy were not significantly correlated with individual innovativeness. However, a significant correlation was found between Market culture and Individual Innovativeness. Furthermore, using simple linear regression it was found that market-oriented organizational culture influence individual innovativeness among employees. These findings provide insights into the potential of market culture to stimulate innovativeness among employees.

The Basics of Home Office (Re)institutionalisation from the Perspective of Experiences from the COVID-19 Era

After COVID-19, the dynamics of home office development slowed down. According to the experiences of major companies, the problem is “fluctuating”. Research from the pandemic era covers various aspects and fails to present the concept of synthetic developmental conditions. Therefore, the issue of extending the organisation to home spaces was undertaken, identifying the determinants of the sustainable development of workplaces and organisations. The key is to create sustainable work systems, i.e., adapted to the environment, while being creative, critical, and productive. This study aims to establish the cultural determinants of home office development based on empirical research from the perspective of neo-institutionalism. For this purpose, the institutional logics were subject to operationalisation and the co-dependencies of metalogics with the types of organisational cultures assumed in the Cameron–Quinn OCAI model were established. The information was collected in a CAWI survey. The presented research procedure constitutes a methodical innovation. The results demonstrate a trend of changes in the dominating types of organisational culture from market control to cooperation and creation with a stimulating role of professional logics (occupation, organisation) from the perspective of working from home which brings sustainable management and business models. There is a subtle role of home logic and low employee readiness level. The adapted cultural approach demonstrates that increasing effectiveness of home office solutions requires development of integrated practices, which consider this type of work as separate and specialised. The past corporate failures and spontaneous methods cannot serve as grounds for strategies (long-term solutions). However, the research demonstrates a low level and limited range of employee impact on the organisational culture. It also indicates the need for additional analyses to determine the concept of designing workplaces in the Sustainability–Harmonisation trajectory.

Quadruple culture type approaches impacting employees attributes

The study examines the relationship among organizational culture, employee performance, employee satisfaction and turnover in the telecommunication sector of Pakistan. Empirical studies are needed to understand the phenomena, so that the organizations would be able to handle the barriers in management objectives. It was a field study so survey was formed and conducted; data was gathered through distributed questionnaires from 260 employees of public & private, national and multinationals organizations from the cities of Rawalpindi-Islamabad. All the employees willingly participated in the survey though their confidentiality was in tacked. Interestingly the results of this specific investigation make this study unique and important as it indicated that organizational culture types Community, Innovative, Competitive and Bureaucratic on employee performance, satisfaction and turnover have different impacts. The study relies on cross-sectional data obtained once from employees of multiple multinationals and national organizations. The employees were from all three types of organizations i.e. service providers, contractors and sub-contractors. Regression tests were applied to analyze the data. . It leads to conclusion that employees are performing well, even being unsatisfied and want to remain with their current jobs. This study provides the knowledge that the results of the measures of same constructs cannot be same across different cultures and countries. With this study government and managers should realize the alarming situation in their organizations regarding employees’ behaviors in sometimes unfeasible organizational cultures. The future studies should examine the political and economic constructs and their influence on organizational culture and employees. The present study wishes to contribute in the knowledge gap regarding how organizational culture is impacting employees’ performance, satisfaction and turnover in telecommunication sector of Pakistan It also raises the importance for exploring and developing the theories on the basis of economic and political aspects rather perceiving single theory equally across different cultures.

간호사의 행복감, 셀프리더십, 간호조직문화 유형이 혁신행동에 미치는 영향

Purpose : This descriptive study aims to identify the influencing factors of happiness, self-leadership, and the nursing organizational culture type of nurses on innovative behavior. Methods : Data were collected from 204 nurses working in 5 hospitals with more than 100 beds in G Metropolitan City from August 15-30, 2022. Data were analyzed though descriptive statistics, t-tests, ANOVA, Pearson’s correlation, and multiple regression analysis using the SPSS WIN 26.0 program. Results : A statistically significant difference was found in innovative behavior according to the participants' marital status (t＝－2.12, p＜.05), religion (t＝1.98, p＜.05), education level (F＝8.79, p＜.001), total clinical experience (t＝－2.13, p＜.05), length of work with the current nursing unit manager (t＝－2.29, p＜.05), work type (t＝3.76, p＜.001), and satisfaction with the nursing job (F＝12.10, p＜.001). For innovative behavior of the participants, positive correlations were shown in the order of innovation- oriented culture (r＝.55, p＜.001), self-leadership (r＝.54, p＜.001), happiness (r＝.48, p＜.001), work-oriented culture (r＝.40, p＜.001), relationship-oriented culture (r＝.31, p＜.001) and hierarchy-oriented culture (r＝.27, p＜.001). The factors influencing nurses’ innovative behavior were innovation-oriented culture (β＝.36, p＜.001), self-leadership (β＝.26, p＜.001), hierarchical culture (β＝.16, p＜.01), happiness (β＝.14, p ＜.05), work-oriented culture (β＝.14, p＜.05), and work type (β＝.13, p＜.01). These factors showed a 50.9% explanatory power for nurses’ innovative behavior. Conclusion : Therefore, improving the innovative behavior of nurses requires an environment where they can enhance happiness and learn leadership through programs tailored to individual characteristics. Additionally, forming a systematic organizational culture is essential.

Decision-making Freedom in Delegation of Authority among Managers: A Case of the Office National Assembly Tanzania

This study investigated the influence of a manager's level of decision-making freedom on the effective transfer of authority within the framework of an organization. The study utilized mixed methods encompassing qualitative and quantitative research methodologies, including survey data collected from a varied sample of managers from Tanzania National House of Assembly. The study indicated a robust and favorable association between the level of autonomy granted to managers in decision-making processes and their proficiency in effectively assigning authority to subordinates. Similarly, several types of organizational culture have the potential to either enhance or diminish an association and there exists a strong relationship between the extent of decision-making autonomy granted to managers and their proficiency in delegating authority

기업의 조직문화가 조직몰입과 직무만족에 미치는 영향

Purpose: The purpose of this study was to analyze the effect of organizational culture type on organizational commitment and job satisfaction of foreign companies in Mongolia. This study intended to present a strategic implications as a means toseek an organizational culture suitable for organizational members in Mongolia by examining organizational culture recognized as effective one by organizational members in Mongolia
 Research design, data, and methodology: A questionnaire survey was conducted in the employees working at foreign companies in Mongolia to verify the research model and hypotheses developed based on previous research and statistical analysis was conducted for the collected 281 ones.
 Results: The results are as follows: First, hierarchy culture had a significant effect on organizational commitment. Second, Clan culture had a significant effect on organizational commitment. Third, Adhocracy culture had a significant effect on organizational commitment. Fourth, market culture had a significant effect on organizational commitment. Fifth, organizational commitment had a significant effect on job satisfaction.
 Implications: Foreign companies are required to establish an organizational culture suitable for improving organizational commitment and job satisfaction of organization members in the local country. It is necessary to construct an organizational culture with reference the results of this study showing that hierarchy culture, market culture, Adhocracy culture, and Clan oriented culture influence organizational commitment in that order and efforts at the company level are needed to continuously improve job satisfaction through organizational commitment.

Effects of university organizational culture on student academic behavior in Indonesia

PurposeThe purpose of this study is to investigate (1) how organizational culture influence student academic behavior at universities in Indonesia; (2) if there is any difference between male and female students in perceiving elements of organizational culture and its effects on student academic behavior; and (3) if there is any difference among students from different university origin in perceiving elements of organizational culture and its effects on student academic behavior.Design/methodology/approachThis study is a part of quantitative research with a prediction design involving survey questionnaire. Participants consist of 800 students as survey respondents that were selected purposively from six government universities of the specified cities in Indonesia. Measures are developed and validated through a confirmatory factor analysis. Data were analyzed using multivariate techniques and path analysis to examine effects of organizational culture types on student academic behavior.FindingsFindings of this study indicate that in general organizational culture significantly influenced the growth of student academic behavior.Research limitations/implicationsThe study is limited to public or government universities in Indonesia, that is why and the findings are not intended to generalize all universities in the world.Practical implicationsLeaders of the university organizations or units are suggested to improve their capacities in exploring the trend of organizational cultures, develop and adopt the cultures that contribute to the growth of student academic behavior.Social implicationsThe study provides high valued insights for university organizations especially people involved in the process of university leadership and management on how they deal effectively with organizational situations including types organizational culture, and develop the cultures that contribute to the growth of student academic behavior.Originality/valueThe study adds to the theories of organizational culture and the growth of student academic behavior on campus. It provides broad insights on types of organizational culture used in universities and its effects on academic behaviors performed by students in campus environment.

Analysis Of Determinant Factors Affecting The Leadership Style Of Chief Of Room In The Inpatient Room At Royal Prima Medan General Hospital

The head of the room is managing all the resources in the care unit to produce quality services. The head of the room is responsible for carrying out the supervision of nursing services to patients in the treatment room he leads. The head nurse of the room is responsible for leading and organizing the activities of servants and nursing care. The role of nurse leadership style has a large influence on nurses' work motivation. This is because the leadership of a good head nurse room will increase nurse job satisfaction, so that if leadership is not good it will reduce the level of nurse job satisfaction. Some previous studies suggested that leadership is one of the main factors that influence performance because leadership is the driving force for all resources within an organization. In leadership itself there are several parts of leadership that affect performance such as leadership style, leadership traits, type of leadership, work motivation, empowerment, work environment, organizational culture, leadership quality, and organizational commitment Research conducted aims to determine the analysis of influence factors leadership style on the performance of nurses in class 3 inpatient rooms Royal Prima Hospital in 2022. This research is a type of quantitative research with a cross sectional approach. The sample in the study was 110 room nurses. Data collection techniques in research using questionnaires. The results of this study found a significant relationship between communication factors (p = 0.001), planning (p = 0,000), direction (p = 0,000), and work discipline (p = 0,002) with the performance of nurses in class 3 Royal Prima Hosptal inpatient care. The conclusion of this study is that of the four variables studied, there was one of the most dominant variables influencing nurses' work motivation in class 3 inpatient rooms of Royal Prima Hospital in 2022, namely directing work by the head of the room.

Örgüt Kültürü ve Yeşil Uygulamaların İçselleştirilmesi: Yabancı Alt Kuruluşlarda Karşılaştırmalı Bir Araştırma

This study aims to reveal whether organizational culture has an impact on the internalization of green practices. In this respect, the aim of this study is to show how structural practices arising from organizational culture are reflected in environmental practices developing at the organizational level. In line with the research purpose, a multiple case analysis was conducted on 3 subsidiaries that invested in the context of Türkiye. Eight interviews were conducted by following a semi-structured interview form to collect data on what kind of organizational culture three companies have and to what extent green practices are internalized. Subsequently, the collected data has been subjected to content analysis and research findings were obtained in this way. It was observed that the companies included in the research had an Eiffel tower and/or family type organizational culture. In the Company 1, which has an Eiffel tower culture, it was observed that green practices were adopted at a low-medium level. While it was observed that green practices were internalized at a high level in the Company 2, which incorporated eiffel tower culture and family-type culture elements, it was observed that green practices were internalized at a low-medium level in the Company 3, which adopted the same type of organizational culture as Company 3. Although the research findings show that there is no identical pattern in the adoption of green practices and organizational culture, the findings also shed light on how the elements of organizational culture should be in the context of required or volunteerism in the internalization of green practices in organizations.

Odnos između procesa uključivanja zaposlenih i organizacione kulture u farmaceutskoj industriji u Severnoj Makedoniji

Using the Voice of the Organizations (Vox) instrument, this paper examines the relationship between the onboarding process and organizational culture in the pharmaceutical industry in North Macedonia, with particular reference to drug manufacturing companies. The four-dimensional Vox model has been extensively utilized and focuses only on the four designated types of organizational culture. A total of 228 responses were collected and analyzed using SPSS software by distributing online questionnaires to employees in drug manufacturing companies in North Macedonia. The results indicate that Entrepreneurial Democracy is the most preferred organizational culture during their onboarding process. Moreover, the analysis investigates the impact of generational differences, work experience, and job categories on perceptions of organizational culture in greater detail. Diverse aspects exhibited significant differences, highlighting the need for organizations to address specific dimensions during the onboarding process to foster a positive work environment. Overall, this study contributes valuable insights into the relationship between the onboarding process and organizational culture in the pharmaceutical industry, laying the groundwork for future research and providing organizations with practical implications.

조직문화가 재무성과에 미치는 영향

Organizational culture is a common lifestyle that each organization has unique, and when talking about beliefs, values, cognition, norms of behavior, and behavior patterns that most members have in common (Wagner et al. 2005), telecommuting, flexible work, and free dress codes are implemented with the expectation of improving the productivity and satisfaction of members, but sufficient research has not been conducted on how they affect the financial performance of the entire company. Therefore, this study analyzes the effect of organizational culture on financial performance and the mediating effect of employee satisfaction.
 The results of this study are as follows. The flexible and discretionary culture reported a significant positive relationship with the total asset growth rate, indicating that the flexible and discretionary organizational culture helped the growth of companies. As a result of analyzing the relationship between organizational culture and profitability, it was confirmed that both flexible and discretionary culture and stable and control culture had a significant positive relationship with total capital return, and employee satisfaction had a mediating effect. As a result of analyzing the effect of organizational culture on employee productivity, it was found that flexible and discretionary culture reported a significant positive relationship with value-added per employee and sales revenue per employee, and it suggests that flexible and discretionary organizational culture helped increase employee productivity. However, there was no mediating effect of employee satisfaction.
 It was confirmed that it was helpful to pursue an appropriate organizational culture type according to the financial goals set by the company by reporting the analysis results that financial performance such as growth, profitability, and productivity of the company varies depending on the type of organizational culture. In addition, the effect of the culture and satisfaction perceived by members on the entire organization and individual productivity were confirmed, respectively, helping to predict how the types of organizational culture that companies should pursue affect the future of the company.

Management of cooperative banks in Poland in the context of organizational culture - research report

Objectives The main aim of the article was to determine the impact of organizational culture on the effectiveness of managing cooperative banks. The research conducted by the authors focused mainly on the internal mechanisms functioning in these organizations, such as; leadership style, employee management style, analysis of factors ensuring organizational coherence, defining success criteria and factors motivating employees (often shareholders). Material and methods The methods used in the study included literature analysis and criticism, participant observation, comparisons, case studies, induction and deduction, synthesis. The main research tool was the OCAI (Organizational Culture Assessment Instrument) questionnaire by K.S. Cameron and E. Quinn, based on a competitive value model. The authors also defined the type of organizational culture according to T. E. Deal and A. Kennedy, based on the criteria of the degree of risk and the speed of feedback. 150 entities located in various regions of Poland were deliberately selected for the study. The research sample accounted for 28%. . The research was carried out in 2020 and 2021. Results The obtained results showed that cooperative banks are characterized by an autocratic management style. The autocratic management style does not correspond to the cooperative form. The type of culture indicated by the respondents requires modification consisting in the partial elimination of bureaucracy and autocratic personnel management, downgrading the features of the culture of gamblers and routines. Conclusions From a practical point of view, resolving the dilemma of whether profit is essential the purpose of a cooperative bank's operation has a key influence on the choice of a microeconomic model bank.

Organisational culture and balanced scorecard

This study aims to identify and characterize the culture of the largest exporters without the Balanced Scorecard (BSC) and with the BSC implemented. In addition, it confirms whether there are different characteristics in the type of organizational culture of the largest exporters without the BSC and with the BSC. To achieve this objective, data were collected through questionnaires sent to the 250 largest exporters in Portugal. Multivariate statistical techniques were used to validate the research hypotheses. This research shows that the Adhocracy (turbulent management) culture type prevails in organizations without BSC, while the Market (productivity) culture type prevails in organizations with BSC. The study is based on the characterization of the culture type of the organizations. This characterization is significant because organizational culture shapes and differentiates organizations’ actions, goal definitions, and strategic objectives, which can affect organizational performance. Although recent literature has addressed organizational culture and performance monitoring in isolation, not many studies have been found that link the topics of organizational culture, BSC, and performance.

Paradoxical organizational culture, authoritarian leadership, and international firm performance: evidence from international firms in China

Organizational paradox has received substantial scholarly attention; however, the literature has not yet explored the idea that it can be ingrained and manifested as an international organizational culture. In this study, we conceptually explore and empirically examine paradoxical organizational culture and its impact on international firm performance. In this vein, this study advances our knowledge of international organizational culture by extending paradox theory. We propose a “paradoxical organizational culture” as a type of international organizational culture characterized by the sustained and visible coexistence of contradictory cultural features within an international organization. We also argue that the effectiveness of paradoxical organizational culture is amplified, not dampened, by authoritarian leadership. Quantitative analyses based on cluster groups were used to examine the relationships among paradoxical culture, leadership, and firm performance. The empirical results, based on original survey data collected from China (2256 individual respondents from 394 Chinese international firms), support our claims. Our study is expected to provide implications for those interested in the concepts of paradoxical organizational culture and authoritarian leadership in the international business context.

The role of organizational culture dimension in business recovery: a post Covid-19 perspective in the hotel industry in Kenya

The study investigated the role played by the dimensions of organizational culture in a strategic management process to help organizations in the hotel industry realize business recovery in a post-COVID-19 period. The conceptualization of the study relied on the strategic thinking lens preceding strategic management processes to situate the role of organizational culture in the strategic management processes undertaken at the strategy formulation phase. The element of organization's mission was argued to be the relevant practice for anchoring culture into the strategy formulation process. Four types of organizational culture were studied in business recovery. Three objectives guided the study focusing on the extent of the adoption of culture types, levels of business recovery attained and the effect of the level of adoption on the level of business recovery attained. A sample of 57 hotels was selected and 189 respondents were drawn from functional units in each of the hotels. The study reports that the level of adoption of the culture is at a high level while the extent of business recovery is at a moderate level of between 20-40% growth. Innovation culture does not have a significant statistical effect while market, customer orientation and adhocracy cultures have a significant statistical effect on the level of business recovery. The study concludes that the relevant cultures were responsible for aligning culture with the strategy formulation phase through the component of the mission of an organization and that the process needs to embrace combined attributes of the underpinning theories of RBV and the organizational culture theory. The study calls on future research to integrate more aspects of strategic thinking and consider using more objective sources of research data.

Person-organization fit in Japan: A longitudinal study of the effects of clan culture and interdependence on employee well-being

AbstractStudies of person-organization fit (P-O fit) have shown that a fit between the values of the individual and the values of the organization leads to higher job satisfaction. Here, we extended past research by investigating P-O fit on employees’ well-being. We tested what characteristics of the person and the organization contributed to an effective P-O fit in Japan. Specifically, we examined the role of employees’ levels of interdependence and perceptions of their organizational contexts as clan culture or market culture. This allowed us to test what type of organizational culture formed an effective P-O fit for employees with highly interdependent cultural values in Japan. A longitudinal survey of 456 workers in Japan conducted in 2021 and 2022 revealed that clan culture—organizational culture emphasizing interpersonal harmony—was positively related to employees’ well-being, and the effects were stronger for employees with high levels of interdependence. Conversely, market culture—organizational culture emphasizing competition and achievement—was unrelated to employees’ well-being. In fact, it was negatively related to those employees’ well-being who scored high on interdependence. Taken together, these results showed that the effects of organizational culture on employees’ well-being depended on the levels of their interdependence. It seems that interdependence (P) and clan culture (O) provide an ideal P-O fit for Japanese companies.

Examining the Antecedents and Consequences of Public Officials’ Satisfaction with the Flexible Work System

The purpose of this study is to demonstrate the antecedent and consequential factors of satisfaction with the flexible working system. Organizational culture was examined as an antecedent factor, while job satisfaction, work performance, organizational commitment, turnover intention, and quality of life were examined as outcome factors. The data of 2,785 public officials who used the flexible work system in the Korea Institute of Public Administration (2022) data set were analyzed using SPSS 28.0. and PROCESS macro's Model 4. The main research findings are as follows. First, organizational cultures that respect individuality and cooperation, supports management, and aims for work autonomy all positively and significantly affect satisfaction with the flexible working system. When ranking the size of influence by the type of organizational culture, work autonomy, respect for individuality, and a cooperative organizational culture had a positive impact in that order, with work autonomy being the most influential factor. In addition, the public officials' age, job preparation period, self-evaluation of workload, and overtime working hours are significant antecedents of satisfaction with the flexible work system. Second, when examining consequential factors, a high level of satisfaction with the flexible working system affects job satisfaction (+), work performance (+), organizational commitment (+), turnover intention (-), and quality of life (+). Job satisfaction was an especially valid mediator between satisfaction with the flexible working system and other consequential factors, including work performance, organizational commitment, turnover intention, and quality of life.

Types of organizational culture and sustainability in ecotourism businesses in southern Mexico

PurposeThe purpose of this paper is to contribute to the understanding of the relationship between different types of organizational culture (hierarchical, clan or group, market or rational and adhocratic) and sustainability through three dimensions (economic, environmental and social) in ecotourism businesses in Oaxaca and Chiapas, Mexico.Design/methodology/approachIn this research 80 questionnaires were administered in the form of face-to-face interviews to ecotourism business owners'. Through a discriminant analysis and the theoretical support of the competing values framework (CVF), the prevailing types of culture were identified, and their influence was analysed through a regression analysis.FindingsThe results show that ecotourism businesses which are driven by hierarchical culture tend to have a greater focus on economic sustainability, while those businesses with a market or rational culture show a positive and significant influence on environmental sustainability. Likewise, businesses with adhocratic culture achieve sustainability holistically; however, the data reveal that clan or group culture is not associated with social sustainability.Originality/valueThis study offers empirical research that explains the relationship between organizational culture and sustainability. Additionally, it contributes to the study of environmental management issues in the ecotourism sector.

The Effects of Leadership on the Organizational Culture: The Case of the National Institute of Social Security

Research objective: Leadership and culture are critical dimensions to understanding organizational dynamics. This article analyses the effect of leadership on organizational culture at the National Institute of Social Security in Brazil. The study also identifies the predominant types of leadership through the Multifactor Leadership Questionnaire and the type of organizational culture through the Competing Values Framework.Theoretical framework: Models of leadership and organizational culture widely used in the international literature support the article. The Multifactor Leadership Questionnaire is a model composed of constructs about leadership styles and leadership outcomes. The Competing Values Framework is a model that provides a classification of corporate culture and values.Methodology: This study is based on the survey as a research method. Data collection includes 153 professionals from the National Institute of Social Security. For data processing, descriptive and exploratory analyzes were performed. Structural equation modelling and partial least squares estimation were also used in the research method.Results: The results reveal that leadership influences culture through a positive effect relationship with statistical significance. The results also show the predominance of the transformational leadership style and the clan culture in the case studied.Originality: The article originally contributed by exploring the relationship between forms of leadership and organizational culture in a public organization. The study uses new constructs for the national literature by incorporating the models of the Multifactor Leadership Questionnaire and Competing Values Framework.Theoretical and practical contributions: The article contributes to the advancement of theory in Public Administration by showing the influence of forms of leadership on organizational culture. The study also has practical and managerial implications as it indicates how forms of leadership should be developed to create collective identities. Keywords: Leadership, Organizational culture, Structural Equations, Public administration, Non-profit organization.

Portuguese and Brazilian Family Business: in Between Urgency and Delay Perceptions in the Succession Process

Abstract Family business has been the focus of several studies over the last two decades and its relevance has been supported by the interdisciplinary perspectives in the fields of management, entrepreneurship, economics, psychology, and sociology. Despite that, there is still insufficient knowledge about the key role of family influences in the business, namely the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50% of family businesses are not passed on to the second generation and only 20% reach the third generation. In fact, business succession planning has been identified as one of the most challenging steps in the life of the family firm, both in maintaining the competiveness of the business, and in overcoming intra/inter family conflicts. Nonetheless, resistance to succession, relationship founder/successor, planning of succession, and type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life (Zahra, 2005). This paper will be supported mainly by qualitative data, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER) developed in Portugal (Marques, 2018) and in Brazil (Silva, 2018), which analyses in-depth interviews conducted to Portuguese (N 23) and Brazilian (N 11) founders/managers/owners. In the present article we wish to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation.