Impact of Organizational Culture on Strategic Agility and Sustainable Growth in Family-Owned Enterprises
Keywords:
Organizational Culture, Strategic Agility, Sustainable Growth, Family-Owned Enterprises, Structural Equation Modelling, Mediation Analysis.Abstract
This paper focuses on how organizational culture affects the strategic agility and sustainable growth of family-owned businesses. Its aims are to examine the direct and indirect relationships between the said constructs, as well as to ascertain whether strategic agility assists in the relationship between organizational culture and sustainable growth. Quantitative research design was used with a cross-sectional survey of 350 family-owned companies in India. The structured questionnaire was used to gather data on owners and senior managers by using the scales of validated measurements. A five-point Likert scale was used to measure the constructs. The hypothesized mediation effects and the relationships were tested using Structural Equation Modelling. It demonstrates that strategic agility is greatly determined by organizational culture (β = 0.62, p < 0.001). The positive impact of strategic agility on sustainable growth is also high (β = 0.55, p < 0.001). Also, organizational culture has a direct effect on sustainable growth (β = 0.28, p < 0.001). The mediating effect of strategic agility in the relationship between organizational culture and sustainable growth is verified through the application of the mediation analysis (indirect effect β = 0.34). The model has good fit indices, which prove the strength of the proposed framework. The results indicate that family-owned businesses must develop adaptive and innovation-driven cultures in order to become more strategic, agile, and attain their long-term sustainable growth. This paper combines the two approaches of organizational culture and dynamic capability to understand the process of sustainable growth of family-owned businesses.
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