EFFECT OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE OF FAMILY-OWNED BUSINESSES IN INDIA

Abstract

In the dynamic landscape of India's economy, family-owned businesses stand as pivotal drivers of growth, wielding substantial influence in employment generation, income generation, and wealth accumulation. However, this vital sector grapples with multifaceted challenges ranging from leadership dynamics to suboptimal employee performance, narrow profit margins, and fierce market competition. This research delves into the intricate interplay between organizational culture and the performance of family-owned businesses in India. Drawing upon the tenets of resource-based theory, the study meticulously examines a target population comprising 1956 business owners. Employing a descriptive research design coupled with a stratified random sampling methodology, the research scrutinizes the essence of organizational culture as perceived by business owners. Utilizing the Nassuma formula to ascertain a sample size of 320 respondents, data collection hinges on a meticulously crafted questionnaire administered by the researcher. Leveraging SPSS for data analysis, the findings are meticulously synthesized into tables, figures, and a regression model to elucidate the intricate relationship between organizational culture and business performance. Significantly, the study unearths a statistically significant positive correlation between organizational culture and business performance, underscoring the paramount importance of fostering a conducive organizational culture for enhancing the operational efficacy of family-owned enterprises. In light of these findings, the study advocates for a concerted emphasis on nurturing organizational culture as a strategic lever to propel the performance trajectory of family businesses in India.