The Impact of Ownership on Small Firm Behaviour and Performance

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.