Mediated Reference Point Shifts: Breaking Free of the Family DNA

Institutional alignment comprises the integration of sanctioned organizational models and standardized managerial roles, thus reconstructing traditional organizations as contemporary actors with homogenous global identities. We adopt this perspective to illuminate the processes by which a business family homogenizes to conform to the global world order, through extensive use of advisors and management consultants. To do so, we narrate the experience of a third-generation Israeli-based multinational enterprise. We find that the cumulative adoption of standardized corporate organizational models periodically shifts the family’s decision-making reference points, enabling it to expand its product and geographic scope and act as a global player.