Entrepreneurial Orientation and Family Firms Performance - Research Paper Example

Success is dependent on a number of factors, including family relationships, the structure of leadership and management infrastructures, the vision and goals for the company, and the level of control by leadership in relation to the rest of the family members. Additionally, national and cultural influences also play a large part in the type of family-controlled businesses that determine whether they will be successful on both the local and the international level. . For those that have been educated in Western universities and colleges, the ability to translate that knowledge of interacting with other cultures while at school, becomes a great asset to the family business when entering the global market (Okoroafo & Koh 2010).

Along with higher education, young people are also skilled in computer and software operations that would help design and upgrade operations for the company. Those who have learned other languages, bring a higher level of communications, valuable in working deals on a global level. The global business community presents numerous situations where differing cultures will converge and, accordingly, not all of them culturally align in how they interact with each other. This can also be due to leadership within these companies which has not taken the time to learn how the other side may relate in differing negotiation styles (Kontinen & Ojala 2010).

Previously, this was viewed with Western powers trying to move into other countries to expand business on a global level. Failures came when Western leaders bypassed learning about the cultural influences on business in different countries, particularly Asian businesses (Chen 2011). As the global playing field levels out where small to medium companies anywhere, can now operate the same way as large companies in creating global deals, family business infrastructures are also making their mark on the playing field (Chu 2011; Welsh et al. 2013). This means a slightly different manner of operating, as these businesses operate within a relationship parameter of loyalty and trust within their own family group, for the most part.

Yet, there can be some discord when the Next X group (NxG), within a rigid family structure, and depending on where they stand in the total business infrastructure, propose new ways of doing something as opposed to what was done before (Chen 2011; Eddleston & Kidwell 2010).