Matching Owner-Managers' Cognitive Style and Organizational Demands in Family Firms
24 Pages Posted: 7 Oct 2007
Date Written: April 1, 2004
Abstract
Based on survey responses from 159 owners-managers in small, family firms, we examined the association between specific individual characteristics, firm characteristics, and the individual psychosocial outcomes of satisfaction, intentions to exit, and perceived fit. Hierarchical regression analyses indicated higher satisfaction, lower intentions to exit, and higher perceived fit for owner-managers whose dominant decision-making style complemented the levels of formalization in their firms. More specifically, the results suggested that owner-managers with intuitive decision-making styles were better fitted to the demands corresponding to less structured firm environments than their analytic counterparts. The theoretical and practical implications of these findings are discussed.
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