A Comparative Study of Personality Dynamics of Family and Non-Family Entrepreneurs and their Impact on Organizational Effectiveness

Abstract

The current research focuses on the exploration of the big five personality traits model and its impact on organizational effectiveness in the restaurant industry entrepreneurs of Lahore, Pakistan. The personality traits of different entrepreneurs working in family and non-family owned enterprises are analyzed along with their effectiveness. Data collection mode was survey and data was collected through structured questionnaire. Purposive non-probability sampling technique was used for sample selection. Questionnaire was responded by 110 entrepreneurs (55 family entrepreneurs and 55 non-family entrepreneurs) of restaurant industry. The research findings reveal that all of the personality items have a positive correlation with the organizational effectiveness except neuroticism, yet these personality traits have variable impact on the effectiveness of restaurants. For family entrepreneurs, the traits of extrovert, neuroticism, openness to experience and agreeableness have significant impact on the effectiveness of restaurants whereas for non-family restaurants only conscientiousness trait has a significant impact on restaurants’ effectiveness.

Keywords: family entrepreneurs, non-family entrepreneurs, conscientiousness, extrovert, neuroticism, openness to experience, agreeableness, organizational effectiveness.