Towards an understanding of the role of sociocultural learning in family firm longevity.

Abstract

Sociocultural learning occurs when social interaction takes place and is influenced by the prevailing values and beliefs of the particular group. The focus of this research is the family firm which is defined in general terms as a business owned and managed by members of a single family. Family firms form an important part of the Cumbrian economy and those that have survived to a third generation of family ownership, growing to medium or large companies in the process, are of particular significance. This research examines two such firms from the perspective of sociocultural learning, focusing particularly on situated learning and community of practice theory. Communities of practice are an integral part of daily life; in the context of this research, they refer to the workplace. This study examines two aspects: firstly, the nature of learning between the family members and their staff, and that occurring between experienced staff and newcomers to the company. Secondly, it investigates the impact of power relations on learning within the organizations. Using a constructivist interpretivist approach, a case study method was adopted, and interviews were conducted with family directors in two companies and members of management in one of them. The research found that practices in both companies were consistent with situated learning theory. Shared learning was not only key to innovation and adaptability but also contributed to the maintenance of the culture passed down from the previous generations. It was further identified that the potential for learning in the two organizations was facilitated or impeded by the way management power was exercised. The study concludes that people, values, and learning and adaptability are important aspects of family firm success and, depending on the way in which they are managed, may contribute to the firm’s longevity.