Resistance to change in the financial management of small family-owned firms: a grounded theory of family firms in Laos

Purpose The purpose of this study is to apply a grounded theory (GT) approach to develop a theory of resistance to change in the financial management of Laotian family firms. Design/methodology/approach The research adopts a GT approach, using a theoretical sampling procedure. Interviews were conducted with 36 Laotian family firms between April 2017 and May 2019. The in-depth interview transcriptions were analyed using open coding, axial coding and selective coding. Findings The interviewees identified that strategic planning, budgeting and management processes are factors influencing resistance to change. Research results show that accounting portfolios, investment decisions and return on assets are aspects of financial management that are particularly prone to change. The authors, therefore, suggest that Laotian family firms’ reduction in confidence and loss aversion may activate resistance to the adoption of more efficient financial management practices. Originality/value To the best of the authors’ knowledge, this is the first research to attempt to use grounded data to emerge a theory of resistance to change in financial management in Laos.