Document Type

Dissertation

Degree

Doctor of Business Administration

Major

Business Administration

Date of Defense

7-23-2024

Graduate Advisor

Seemantini Pathak

Committee

Seemantini Pathak, Ph.D.

Torsten Pieper, Ph.D.

Kailash Joshi, Ph.D.

Abstract

This dissertation examines the influence of organizational controls on technological capabilities in privately owned U.S. corporations, with a specific focus on family-owned businesses. The primary objective of the study was to investigate how formal controls (process and outcome) and clan controls (informal practices) impact technological innovation and competence. Using a quantitative approach, data were collected from 177 individuals and analyzed through partial least squares structural equation modeling (PLS-SEM) path analysis. The findings indicate a significant relationship between formal controls and technological capabilities. However, the interaction of family influence on this dynamic was not supported. Results also revealed a robust association between the combination of formal and clan controls and enhanced technological capabilities. Despite this, the anticipated weakening effect of the influence of family firms on this positive relationship was unsupported. Additionally, the hypothesis that clan control negatively impacts technological capabilities was not supported, and the moderating effect of family influence on this relationship was also unsupported. The hypothesis that family influence strengthens the positive interaction of the integration of formal and clan controls was partially accepted, showing a slight significance within the family power construct on the overall relationship. These insights offer practical guidance for family-owned businesses, suggesting that the effective integration of formal and clan controls along with the influence of family firms can enhance technological capabilities, optimizing their competitive position and long-term performance. This research contributes to the understanding of control mechanisms in family-owned businesses and their role in fostering technological improvements.

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