Relationships between the Growth of Family Business Group and the Dominant Logic of Decision Makers: An Exploratory Study in the viewpoint of Co-evolution.
Date Issued
2004
Date
2004
Author(s)
Chang, Linc-Chia
DOI
zh-TW
Abstract
Sustaining continuous growth is a critical mission to managers and has been a central issue of concern in the field of strategic management.
Previous research has been focusing on the motives, directions, modes, and consequence of business growth strategies, with substantial efforts put on the research on relatedness. Most of these research were taking economic and rational decision approach. Prahalad and Bettis (1986) proposed that dominant logic, which refers to a general manager’s cognitive and simplification process of decision making, could be a sensible factor to understand a firm’s diversified move. However, very little follow up empirical research can be found in the growth literature.
The purpose of this research is to undertake in-depth case approach and apply co-evolution framework to explore how a firm’s general management dominant logic will affect its growth evolution. We argue that dominant logic could serve as a selection mechanism in the organizational evolution within environmental and industrial context.
Based on a longitudinal case research focusing on one family business group, Walsin-Lihwa, we are able to document how its dominant logic was formed. The dominant logic existed in the patriarch of the family, not a group of general managers, which in turn affected the group’s business development, internal organization operation, and finally the performance. Dominant logic may help the decision makers more efficiently, but also may become the limit to the decision makers.Implications and suggestions based on the explorative results are
discussed.
Subjects
共同演化
家族企業
主導邏輯
企業成長
集團企業
Family Business
Co-evolution
Dominant Logic
Business Group
Business Growth
Type
thesis
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