The Effects of Generational Involvement as Moderator Between Clan Culture and Entrepreneurship Orientation in Universitas Ciputra Family Business

Abstract

This research aims to observe the influence of generational involvement in clan culture and entrepreneurial relationships in family businesses. This research employed the quantitative approach by gathering the primary data using a questionnaire. The respondents of this research are the members of the Universitas Ciputra Family Business class 9 consisting of 115 family businesses, and non-probability sampling was used. The gathered data were then analysed using hierarchical regression analysis to observe the influence of generational involvement moderation in clan culture and entrepreneurial orientation relationship, in addition to implementing F-test and t-test to discover the significance of the dependent and independent variables. The results showed that clan culture had a positive significance over entrepreneurial orientation when only 1 generation was involved in the company, while the greater number of generations involved in the company could weaken the clan culture and entrepreneurial orientation relationship. The implementation of a clan culture in a company has a positive impact when only one generation is participating in the company. Therefore, family companies must consider the number of generations that participate in the company before determining the type of corporate organizational culture to improve the entrepreneurial orientation of the company.