Understanding the Strategies for Managing Organizational Change in Family-Owned Enterprises
Keywords:
Family-owned enterprises, organizational change, leadership succession, organizational culture, qualitative research, strategic management, Tehran, intergenerational dynamicsAbstract
This study aims to explore the strategies employed by family-owned enterprises (FOEs) in managing organizational change, with a focus on leadership dynamics, cultural values, and change management practices. This qualitative research utilized a case study approach, drawing data from semi-structured interviews with 22 participants from family-owned businesses in Tehran, Iran. Participants were selected through purposive sampling and included founders, successors, and senior managers across a range of industries. Data collection continued until theoretical saturation was achieved. Interviews were transcribed and analyzed using thematic analysis facilitated by NVivo software. The analysis followed Braun and Clarke’s six-step framework, ensuring a rigorous and systematic approach to coding and theme development. The analysis yielded three main themes: (1) leadership and decision-making, (2) organizational culture and values, and (3) strategic change management practices. Subthemes included visionary leadership, participatory governance, role conflict, resistance to change, intergenerational value conflicts, incremental change, and knowledge transfer mechanisms. Participants emphasized the importance of balancing tradition with innovation, managing intergenerational tensions, and maintaining family cohesion while navigating change. Change efforts were often gradual, trust-based, and communication-driven, reflecting the socioemotional priorities of FOEs. The findings suggest that FOEs adopt unique, culturally embedded strategies to manage organizational change, shaped by the dual imperatives of family legacy and business survival. Understanding these strategies requires attention to the emotional, relational, and symbolic dimensions of change. The study contributes to family business literature by providing context-specific insights from an emerging economy and highlights the need for tailored interventions that align with the distinct logic of FOEs.
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