Flexibility in Norwegian Family-Owned Enterprises

Posted: 17 Nov 2009

Date Written: 2005

Abstract

This study examines whether family-owned businesses in Norway are more likely than non-family firms to adopt various practices designed to increase numerical and organizational flexibility.Following a discussion of the theories that lead to the belief that family ownership stimulates the adoption of flexibility practices, it is hypothesized that family firms adopt autonomous workgroups, job rotation, and multiskilling and use subcontractors and temporary workers more often than non-family firms.At the same time, it is hypothesized that family businesses may adopt these flexible work practices less frequently than other firms because such practices can be costly. Data from a 1997 flexibility survey of 2,130 private and public Norwegian establishments, conducted by the Institute for Social Research in collaboration with Central Bureau of Statistics of Norway, were used to test these hypotheses.General managers were asked to describe the flexibility practices used by their firms.Of the five original hypotheses, only one was fully supported by the survey data: certain flexibility practices are indeed less prevalent in owner-managed family firms than in non-family firms and family firms with professional top managers.The findings suggest that owner-managers of family businesses are more reluctant than professional managers to implement new management practices and personnel policies. (SAA)

Keywords: Employee management, Employment policies, Family firms, Flexible structures, Management techniques, Operator ownership, Adaptability

Suggested Citation

Gulbrandsen, Trygve, Flexibility in Norwegian Family-Owned Enterprises (2005). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1506770

Trygve Gulbrandsen (Contact Author)

Institute for Social Research ( email )

Munthesgate 31
0260 Oslo
Norway
+47 23 08 61 83 (Phone)

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