The Family Business in Collectivist Societies: Traits and Implications

The way a family business functions is greatly influenced by the structure of the society it originates from. A wide range of literature has recently attempted to emphasise that it is, therefore, not possible to create global family business theories without taking into consideration the remarkable differences that cultural and traditional context can make. Our attention is drawn to the role that collectivism plays in influencing family culture and the way in which it manifests in entrepreneurial activity throughout family generations. Collectivist societies and the family culture experienced by its individuals can have an important influence on the family business and the entrepreneurship it fosters. The term “collectivist society” describes how individuals often behave while following imposed sets of social patterns. On a smaller scale the same paradigm applies to family businesses where the family and the business life cycles complete each other. Hamza El Fasiki, Head of Research and Studies at the Moroccan Center for Innovation and Social Entrepreneurship, describes the impact of the collectivist society on the family business paradigm and explores how organisational and family culture become one, and the power hierarchy that ensures.