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The Cultural Paradigm of the Smaller Firm

This paper presents the findings from an ethnographic study of organizational culture and shared values in four smaller firms, the outcome of which was the iden- tification of the cultural values shared between owner–managers (OMs) and employ- ees in each firm. The research employed Schein’s conceptualization of culture as a three-layer phenomenon, consisting of surface artifacts, shared values and beliefs, and basic assumptions. The analytical technique of grounded theory was employed to process the large volume of data gathered during the extended research period. The data reveal a complex array of values in each firm, with only one firm exhibit- ing a homogenous culture where values are shared by all those working in the organization. In the remaining three firms, five values appear to be shared by all employees; however, this is overlaid by a pattern of subcultures differentiated by dis- tinctive shared values. Interfirm analysis among the four firms found that the values of survival, independence, control, pragmatism, and financial prudence were shared by two or more firms. The research collectively defines these shared values as the cultural paradigm of the smaller firm.

Introduction
Organizational Culture and Shared Values
The Internal Operating Environment of the Smaller Firm
Shared Values in the Smaller Firm
Methodology
Shared Values in Four Smaller Firms
The European Firm
The Scottish and Worldwide Firms
The Cultural Paradigm of the Smaller Firm
Conclusion

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