Introduction

Family businesses in Colombia represent a fundamental factor of progress and entrepreneurship. Jaramillo (2003) considers that the current economic growth of the country represented in the GDP is strongly marked by the small and medium industry, which generally relies on shareholders that have some family connection. It is necessary to identify that businesses, besides generating great quantities of resources by their types of productions, are also a source of employment. The situation is such that at present these industries generate 80% of the employment in the country, according to the Ministry of Industry, Commerce and Tourism (2018); therefore, it becomes imperative to concretize the form by which these businesses have managed to establish themselves in the market and to remain in it based on their market orientation, focusing precisely in its capacity of innovation and its organizational culture. Given these considerations, this research work seeks to resolve the following question: How does organizational culture and innovation influence the market orientation of family businesses in the City of Pasto?

First of all, it is necessary to define that small and medium enterprises not only have relevance within Colombia, but that this relevance is presented in all Latin American countries. According to the Latin America Business Review (2014) not only are small and medium enterprises important for the generation of work, but also for the generational ties they create to give continuity to the businesses established in the market.

According to Borroso and Jiménez (2011), a family business is a social organization in which business and family coexist in a syncretism that generates two superimposed subsystems that are interdependent and generate conflicts and business solutions. Similarly, Soto (2013) affirms that this is a type of business where decision-making is done considering a family that controls all production processes. It should be noted that this considers the founder, who as a sine qua non condition will seek that their children and grandchildren are those who control the business in times to come. With this, the conservation of roots and family unity is promoted.

According to (Quejada Pérez, Raúl Francisco, and Ávila Gutiérrez, Jorge Nelson, 2016, p.4) The matter of family businesses appears in the current context of academic topics due to the importance that this type of businesses has within the production structures of both developed and developing economies. Its importance lies in the power it represents to generate jobs, and in the entrepreneurial spirit embodied by its founders. However, bottlenecks are also recognized within its performance, due to the difficult sustainability over time, because of the so-called generational crises. In this sense, family businesses must structure and establish strategies to mitigate this scourge, through the internationalization and professionalization of their human, administrative, and financial resources.

Consequently, it is necessary to argue that family businesses are essential in the competitive environment for the confluence of resources, and for the maintenance of the economy of any country, but they require new research to generate sufficient knowledge to maintain them over time. It should be noted that the greatest problem they face are the generational changes that make many of these succumb. To this end, it is necessary to denote the impact of organizational culture within family businesses.

As for organizational culture, Hipas (2013) considers that this is the way of life that the organizations have carried out in a particular way; these refer to the own visions of the members of the organization, so that the values, beliefs, and general habits that have been established little by little, and that are an essential part of the development of the productive or commercialization activity, are considered. One author who concretely defines the importance of organizational culture in family businesses is ^{Morales (2010)}, who states that culture as such is the way in which business leaders denote their leadership style. The author considers that it is not possible to evaluate organizational culture without having determined the type of leadership, especially in family businesses, recognizing that this is also the way in which businesses relate not only with internal customers of the organization but also with members external to it. It is this way that a business can be consolidated in the market as one of the most beloved or better-established businesses. At this point, it is necessary to point out that Colombia has a particularity with respect to organizational culture, and it is precisely the fact that businesses are loved in their environment, are accepted, and are considered as their own.

In the understanding of the impact of organizational culture on family businesses it is necessary to consider Monroy (2013), who vehemently states that these types of businesses are small businesses that have the same organizational characteristics, meaning that within these are norms, conflicts, and hierarchy, so they manage to combine these factors and formulate a form of culture, this action is even more accentuated in family businesses that base their operation on subsidiary relationships.

The other key concept of this research is that of innovation, which is one more of the factors considered essential for the survival of family businesses within the market. Initially it is necessary to bear in mind that the current concept of innovation, according to Lozano (2010), is the capacity that businesses have to face the competitive world from the creation of new products and services. This concept encourages the business to surprise the customer, resorting to processes that are beyond their needs; however, to do so it is necessary to resort to one of the most vital human skills: creativity.

According to (Avendaño C., W. R., 2012, p. 190) By innovating, businesses not only introduce a product, service, concept, idea, and/or project to the market, but also offer a striking and interesting alternative to satisfy the needs of people (value) who find a great variety of offers in the market, and become agents who demand changes, ask for transformations, and expect innovation.

As can be seen, the importance in the market is directly related to the way in which all the productive factors come together, including the organizational culture in production, to satisfy and even go beyond the needs of the client, which in the long run is the essential element in the value chain. Consequently, innovation must be combined with leadership, costumer orientation, and transform the forms of production to generate changes in society. In this way, the business is transformed through the knowledge acquired, and this is poured back into the market, transforming it, in turn, into a new reality that modifies the performance of the business.

According to Foss and Saebi (2017) innovation has the characteristic to generate competitiveness within the organization and is the creation of sustainable value. As a process, this helps in the recognition of the business in the future and keeps it in a competitive and voracious market. Continuing with this analysis, it is necessary to bring up Caoa, Lanlan, Navareb, Jyoti and Jin, Zhongqi (2018) who, following the route of new innovations for the local market, manage to specify that the recruitment and promotion of local talent was considered fundamental for businesses. They argue that, since local staff understand the local market better than expatriate employees, it is necessary to attract local talent and create favorable working conditions for them, as this helps many businesses gain a superior view of the local market. Businesses were able to use a more qualitative knowledge of local consumer preferences, and capture value through product/service innovations or new processes.

From the above conceptualization, it is possible to state that the fact that the internal client recognizes the market for which it will produce generates a market orientation per se. Jiménez (2010) denotes that market orientation is a type of organizational intelligence that considers the present and future needs of the market, coordinates the actions of the entire business, and makes production factors converge for the same goal.

^{Ynzunza and Izar (2013)} reflect on the skills derived from market orientation and state that it is a source of competitive advantage that has an effect on financial and market performance, thus proving that market-oriented businesses have a significantly higher performance than those businesses with lesser orientation, especially concerning factors related to the profitability obtained by the business, the adaptability of the same to changes in the environment, the satisfaction of customer needs and desires, etc.

The above allows emphasizing that market orientation, focused mainly on behavior, makes it evident that the intelligence generated can be detached from different employee attitudes and behaviors and fulfill, in a timely and anticipated way, the daily needs of the market.

Market intelligence has a lot to do with market orientation, that is, it is of utmost importance that businesses and organizations coordinate all their functional areas with the primary objective of developing a culture that allows employees to create behaviors specifically aimed towards the needs of customers, in other words, that they become increasingly interested in seeking ways to provide greater satisfaction to the customer and their needs.

According to Rincón, L. D., Rojas Berrio, S., and Montoya, A. (2013) who carry out an analysis of a large number of authors, the proposal is that “Market orientation is conceived within a market philosophy that positively impacts the members of an organization, with the sole purpose of fulfilling the objectives and achieving the proposed results” (p. 67). In this manner, it is understood that market orientation must be conceived as a form of production and marketing; businesses as such must perceive the relevance of these and concretize within their actions and organizational culture the intention to meet customer needs.

According to (Castellanos Ordoñez, Germán and Solano Arboleda, Daniel, p. 92) [...] the existing positive relationship between market orientation and business performance. The businesses that in one way or another manage to know and act on their market have a superior performance, creating a competitive advantage over their rivals. Market orientation is a capacity developed by businesses to successfully face competition, the changing and increasingly demanding tastes of their buyers, globalization, and the rapid changes in the local and global economy. The organizational culture and operational processes required in the development of market orientation as a strategic capability give businesses with that characteristic a competitive advantage over their competitors. In the 21^st century, market conditions are different from those of 30 years ago when the concept of market orientation was first introduced. At that time, the vast majority of businesses were manufacturing businesses and were located in developed countries. There are several trends in the market that are worth mentioning and studying in the future: 1) service businesses are becoming increasingly important in the economies of countries; 2) global manufacturing has moved to developing countries because of its low costs; China and India have become major players in the global arena; and 3) global trends regarding the environment and corporate social responsibility have given way to multiple non-profit organizations. It should be noted in the literature review that service businesses and non-profit organizations do not have a significant volume of empirical studies at the global level. In this sense, it is from 2010 onwards that empirical studies on the relationship between market orientation and business performance are growing in countries such as China and India. These new global trends will open up new avenues for research on the implementation of market orientation and the outcomes of businesses that implement it.

Methodology

This research was carried out using a quantitative approach, an empirical-analytical method, and an explanatory research type. As an instrument for collecting information, a survey was structured and applied in 2016, for which a sample was made a priori by intentional selection or convenience sampling that, according to Casal and Mateu (2003): “Consists of the selection by non-random methods of a sample with characteristics similar to those of the target population. In this type of sampling, representativeness is determined by the researcher in a subjective manner.” (p. 5); finally, with a sampling of 234 people, including managers, founders, and family business owners, it was specified that the population is infinite.

Based on the work by Jiménez (2010), the proposed measurement instrument was used to determine the degree of market orientation of the entities based on the following three items: i) customer orientation, which includes the particular characteristics of those businesses that show an interest in satisfying the needs and desires of customers; ii) competition orientation, which consists of reviewing the mechanisms that businesses use to study and analyze other similar organizations; iii) inter-functional coordination that refers to the analysis of the information that is collected and that is useful for each of dependencies of the business. These factors are chosen because it is possible to denote the configuration of these as a fundamental part of the organization and business action within the Nariñense community.

In order to measure market orientation, two instruments were adopted. These instruments were proposed by Jiménez (2010), who uses the MKTOR scale developed by Narver and Slater

(1990), and the MARKOR scale created by Kholi and Jaworski (1993); both scales acted in a combined manner. Likewise, to measure organizational culture, a model of competing values was used, developed by Quinn and Rohrbaugh (1981, 1983), in which four organizational typologies are proposed: a) developmental or adhocratic; b) rational goal, a characteristic of market-oriented organizations; c) focused on internal processes, called hierarchical; and d) human resources, which is characteristic of businesses that value tradition, behavior, participation, and trust, called group trust. In the first measure it is necessary to denote that this measuring instrument is chosen precisely because the idea is to notice in the first measure if there is a type of approach that is centered on the orientation of the market, although recognizing that many of the organizations will have their focus in the internal organization due to its condition of family business and the syncretism between filial and organizational values, and an alternative option that is that of the human factor; this is chosen precisely because under the precepts of family a great amount of emotional bonds coexist, which in turn define some feelings around the work personnel.

Organizational culture, specifically in family businesses, was measured through the use of the F-PEC culture subscale, which assesses the extent of the influence of the family on business results; this scale, developed by Astrachan, J. H., Klein, S. B. and Smyrnios, K. X. (2002), assesses the degree to which family values and business values overlap, and also assesses the commitment of family businesses.

Innovation was measured through the scale developed by Atuahene-Gima (1996), taken from the document by Osorio (2014), adapted for research purposes. All item measurements were made on a 5-point Likert scale, considering in the same manner the following indicators: product novelty for customers; product novelty for the business; innovation-marketing adjustment; technological innovation adjustment; product advantage; inter-functional work teams; market success; and project impact performance.

It was possible to identify relevant theoretical aspects of organizational culture and innovation with the bibliographic review. For the determination of the existing relation between the analyzed variables, their innovation, and their organizational culture, the Ordinary Least Squares econometric model was used, which allowed establishing the behavior and elasticity that each one generated in the dependent variable, in addition to its dependency level, correlation, and adjustment.

Results

Initially, the sector to which the surveyed family businesses in Pasto belong to was identified, classifying them by economic sectors, as shown in Table 1.

According to the table above, the tertiary or commerce sector is predominant in Pasto city, which is due to the fact that the Department of Nariño has not developed an industrial sector. According to the Statistical Yearbook of the ^{Chamber of Commerce of Pasto (2015)}: “The economic activities in which most corporations were established for the second semester of 2015, were: Commerce and vehicle repair with 39 legally established corporations” (p. 33).

The main modality of the Pasto municipality is micro-enterprises (see Table 2); according to the (^{Pasto Chamber of Commerce, 2015, p.15}) as can be seen, for the movement by business size, 99% are classified as microenterprises and 1% as small enterprises; therefore, the fact that there are more small enterprises in the city and a minimum part of medium enterprises explains why not all the existing labor supply in the region can be absorbed.

Conclusions

Based on the study carried out in the city of Pasto, it is necessary to first define that the productive and commercial activity that businesspeople are carrying out mostly is trade and the repair of vehicles. Likewise, it is indicated that the majority of the businesses that are constituted as such have the quality of micro and small enterprises, consisting in a percentage of 97%. With the above affirmation it is possible to evidence that Colombia handles the same productive logics that the rest of Latin America, where the incidence of the MSMEs is also significant. In the concrete analysis of the variables it is possible to identify that, at present, the family businesses of the city of Pasto do not present formal rules and policies, which makes the division of tasks and the coordinated action of activities very difficult. In the same sense, there is no fixation of achievements to long, medium, and short terms, thus, it rarely presents an adequate organization of times and spaces of action. Given these factors, the presence of a low competitiveness, sustainability, and expansion of markets is evidenced. In this manner, it is factual that there is direct correlation between the theory proposed by Corona et al. (2003) and the reality of the region.

At this point, it is necessary to stress that one of the factors that settle the risk of closure of MSMEs in Pasto is innovation, thus recalling the correlation factor of the two variables. This generates a significant action on the market orientation, thus allowing the establishment of the business with products that solve specific problems of the population, and significantly improve the income of organizations, thus being able to remain throughout time. It should be noted that innovation processes are carried out by young members of families. It is necessary to understand that market orientation is the variable that presents more causality on the innovation variable for the businesses analyzed, with a correlation coefficient of 87%.

Bearing in mind the work of Cortes et al. (2010), it can be seen that businesses that focus their innovation processes on the satisfaction of customers are those that survive over time, especially if they are family businesses. Evidently, this is the strong factor currently present in businesses in Pasto. Now, this can be considered a way to establish better business conditions and resolve the possibility of bankruptcy that is currently present in organizations. It is necessary to note that currently there are different problems that are related to competitiveness, and this is a way to increase it.

According to the study, due to the results of low market orientation and innovation in family businesses, it is necessary to develop a process of awareness and training as a global objective in the process of academic training, with direct experiences in the business field. This allows making the right decisions and evaluating the opportunities of the environment, which is in itself represented as a form of qualification of human talent, but also symbolizes support for the family environment.

Regarding the innovation that precedes the inclusion of new forms of production and commercialization, a low level of technological incorporation is noted in the region; this fact is explained by the scarce public and private investment historically registered by the Nariño Department. This condition can be significantly diminished if an adequate market orientation is presented.

According to (^{Solarte, C. Solarte, M. Arcos, C., 2017, p. 26}) it is worth mentioning that it is of total importance that just as there are different programs that help to train and direct people and the creation of new companies, it is necessary that there are also various programs or policies to help guide the processes with respect to business issues such as market orientation, innovation, and organizational culture, these three items are strategic resources for a significant improvement in business results.

From the perspective of the authors, and under the worrisome look of the business actions in the city, it is important to point out that conscious plans that generate a real level of innovation must be formulated in order to break behavioral paradigms in the population, who mostly think that current regional businesses do not meet their expectations. It is necessary to clarify that this situation occurs precisely because regional markets are crowded with products that are not produced within the region and that have quite different specifications.

In the same measure, it is necessary to determine, in a reliable way, the variables that denote an incidence inside organizational culture, because although businesses in Pasto are considered as friendly-fulfilling the precepts of the American Business Review (2010)-, it is necessary that these are competitive so that they remain in the market.

Consequently, it is understood that the head of the family is generally the director of the company, and this often creates processes of nonconformity within the productive action. To avoid these conflicts requires initiating appropriate organizational processes that allow family members to take an important hierarchical level and adequate empowerment.

In general, competitiveness, innovation, and organizational culture, although variables that are apparently not related to each other, are considered quite relevant for the maintenance of a business throughout time. To this end, greater attention is needed by medium and small businesses in the city of Pasto, including these variables as essential procedural aspects in the determination of their productive activities.