Edited By Gunnar Prause, Urve Venesaar and Wolfgang Kersten
Strategic Management and Organisational Culture of Family Business in Estonia. Maret Kirsipuu, Juhan Teder and Urve Venesaar
187 Strategic Management and Organisational Culture of Family Business in Estonia Maret Kirsipuu1, Juhan Teder2 and Urve Venesaar3 Abstract Family business traditions in Estonia were broken in connection with the incorporation of Estonia into the Soviet Union and the accompanying implementation of the socialist econom- ic model. In 1991, after Estonia regained independence, private entrepreneurship started to grow fast; among other things, entrepreneurs started to restore previous farm places and many, especially in rural regions, set up a family business. Twenty years later family entre- preneurship is more advanced in rural areas and family entrepreneurship has a substantial role in the Estonian economy. Management and organisational culture of family businesses have been studied in tradi- tional stable market economies but less in former socialist countries. This research seeks to identify the family entrepreneurs’ considerations and motives that pushed them to decide in favour of family business, to point out special features in family business management and organisational culture, as well as to map the similarities and differences in family businesses, their social and cultural aspects. The novelty of the research consists in that it is the first ex- tensive research on Estonian family businesses and the data obtained can be used as input data in future research. Based on data collected in the years 2006−2011 and using qualitative and quantitative methods of analysis (databases, questionnaires, interviews, cluster analysis, multidimensional scaling) the authors demonstrated that the dynamic development of a family business and continuing valuation of organisational culture is ensured...
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