Family Business Management Culture in a Developing Economy, Samoa as an Example

Abstract

This empirical study investigates what makes family-firm culture in a developing economy unique by comparing the values and beliefs of Samoan family-business members with that of government workers within American Samoa and with family-business members in the U.S. Family firm literature stresses the differences between family-firm and non-family management in terms of culture, goal-setting, and strategy. Family-firm culture is said to be a resource leading to competitive advantage. This study is based on a survey comparing 90 American Samoa family-firm members with 58 Samoan government workers, as well as with 87 family-firm members in the U.S. Statistically significant differences between the culture of members of family-owned firms and government workers were found within Samoa as well as between Samoan family firms and family firms in the U.S. Nationality had the strongest effect on responses but family-firm membership had a secondary but still significant effect in five culture constructs. We can conclude that differences in Power Distance, Social Cynicism, Social Flexibility, Spirituality and Fate Control describe fundamental aspects of family-firms in American Samoa and may illustrate at a fundamental level how an island economy differs from a developed continental economy. In-depth culture studies involving family-firms in island economies, such as this one, may have broad application for the special challenges facing economic development in small island states.