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The impact of ownership on small firm behaviour and performance

Ghobadian, Abby; O'Regan, Nicholas

Authors

Abby Ghobadian



Abstract

The impact of ownership on organizational performance has attracted the interest of a large number of scholars. The empirical research predominately focuses on the impact of ownership structures on organizational performance, and to a lesser extent on the relationship between ownership type and performance. The relationship between ownership and other organizational factors has received little attention. In this article we examine the relationship between independent and subsidiary plants/operating units and leadership style, culture, emphasis on dimensions of the strategy making process, barriers to the implementation of strategy and a matrix of performance measures. Overall we found that independent firms performed better along some but not all dimensions of performance. In addition, they placed less emphasis on dimensions of the strategy making process, faced more implementation barriers, and were more likely to have a transformational style of management. We found differences along dimensions of culture, but no significant difference in cultural strength. © 2006 SAGE Publications.

Citation

Ghobadian, A., & O'Regan, N. (2006). The impact of ownership on small firm behaviour and performance. International Small Business Journal, 24(6), 555-586. https://doi.org/10.1177/0266242606069267

Journal Article Type Article
Publication Date Dec 1, 2006
Journal International Small Business Journal
Print ISSN 0266-2426
Electronic ISSN 1741-2870
Publisher SAGE Publications
Peer Reviewed Peer Reviewed
Volume 24
Issue 6
Pages 555-586
DOI https://doi.org/10.1177/0266242606069267
Keywords small and medium enterprises, SMEs, ownership
Public URL https://uwe-repository.worktribe.com/output/1035053
Publisher URL http://dx.doi.org/10.1177/0266242606069267