Exploring the Factors Affecting Organizational Decision-Making in Family-Owned Enterprises
Keywords:
Family-owned enterprises, decision-making, qualitative research, succession, governance, socioemotional wealth, IranAbstract
This study aimed to explore the key factors influencing organizational decision-making processes within family-owned enterprises (FOEs) in Tehran, with a focus on the interplay between familial, organizational, and external dynamics. A qualitative research design was employed using semi-structured, in-depth interviews with 20 participants, including founders, successors, and senior decision-makers from family-owned businesses located in Tehran. Participants were selected through purposive sampling based on their active role in decision-making. Data collection continued until theoretical saturation was achieved. All interviews were audio-recorded, transcribed verbatim, and analyzed using thematic content analysis with the support of NVivo software. The coding process followed a three-stage structure: open, axial, and selective coding. Three main themes emerged from the data: (1) Familial influence on decision-making, including subthemes such as emotional attachments, succession-related pressures, and informal power structures; (2) Organizational dynamics, highlighting centralized authority, role ambiguity, and underdeveloped governance mechanisms; and (3) External and market-driven pressures, such as economic instability, regulatory uncertainty, and technological disruption. The findings revealed that decision-making is often shaped by emotional loyalty, legacy considerations, and informal authority rather than formal strategy or data-driven logic. Cultural norms and intergenerational tensions further complicate strategic planning and responsiveness to external change. The study highlights the complexity of decision-making in FOEs, particularly in culturally embedded and economically volatile contexts. The findings suggest that both internal familial dynamics and external market conditions significantly influence organizational behavior, often resulting in informal, conservative, and reactive decision-making patterns. These insights offer a nuanced understanding of FOE governance and suggest the need for context-sensitive approaches to leadership development and organizational planning.
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