The influence of institutional and in-group collectivism practices on next-generation engagement in the family business

Abstract

Purpose This research aims to investigate the influence of country culture on the next generation's intention to become managerial leaders of the family business, focussing on institutional and in-group collectivism practices. The authors investigate not only the direct effect of these collectivism practices on next-generation engagement, but also the extent to which institutional and/or in-group collectivism moderate the relationship between parental support and next-generation engagement and the extent to which institutional and/or in-group collectivism moderate the relationship between self-efficacy and next-generation engagement. Design/methodology/approach Using cross-national data from the Global University Entrepreneurial Spirit Students' Survey (GUESSS) and the Global Leadership and Organisational Behaviour Effectiveness (GLOBE), hierarchical linear modelling (HLM) is employed to test the hypotheses using a sample of 33,390 observations collected in 20 countries. Findings The main findings show that both institutional and in-group collectivism practices may increase next-generation engagement levels. Furthermore, these cultural practices can amplify the relationship between family business self-efficacy and next-generation engagement. However, institutional collectivism can slightly reduce the positive effect of parental support on family offspring's intention to become leaders of the family business. The results also reveal that parental support has a stronger direct effect on next-generation engagement than family business self-efficacy. Originality/value This study examines the influence of cultural practices on next-generation engagement, focussing on collectivism practices. The study distinguishes between institutional collectivism and in-group collectivism. Unlike past research, a direct effect of parental support on next-generation engagement is considered. The study also uses a particular type of self-efficacy: family business self-efficacy. In addition, a multi-level method is employed, which is rarely used in this context.