Culture and economics : do Māori cultural values affect firm performance? : evidence from the business operations survey : a thesis presented in partial fulfilment of the requirements for the degree of Masters of Business Studies in Economics at Massey University, Manawatū, New Zealand
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Date
2025
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Massey University
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Abstract
This study utilises microdata from the Longitudinal Business Database (LBD) to examine the relationship between Māori firm ownership and firm performance in Aotearoa New Zealand. It seeks to determine if Māori firms have different economic outcomes to non-Māori firms, and if differences exist, can they be explained by the practice of Māori cultural values and beliefs? Or can they be, at least partially, explained by the relative prevalence of constraints in the external business environment? To isolate the effect of culture on firm performance, this study uses data from the Business Operations Survey (BOS) to distinguish between firms that employ tikanga Māori and/or Māori management practices. It then uses a two-step approach to estimate the effect of firm ownership on multifactor productivity (MFP). MFP is first estimated via a translog gross output production function, and then regressed on firm type. Logistic regression is used to analyse the relative prevalence of barriers in the external business environment (e.g., access to infrastructure), factors that hamper innovation (e.g., costs) and the relative ease of hiring labour. The results of this study suggest that Māori firms face significant inequities in accessing physical infrastructure - particularly in transport and water and waste services - and that Māori firms are more likely to report costs as a significant barrier to innovation. Contrary to existing literature, this study finds no statistically significant difference in MFP between Māori and non-Māori firms. It also finds that firms that employ tikanga Māori and/or Māori management practices find it relatively easier to recruit workers from certain occupational groups. This suggests that there are benefits from the use of tikanga Māori and/or Māori management practices in recruitment. Additionally, these results highlight the need for researchers to consider the particular definition of a Māori firm employed in research but to also consider consistency of self-identification. This research contributes to our understanding of how indigenous cultural values influence business operations and it challenges assumptions about the inverse relationship between collectivist cultures and economic performance. It adds to the literature on the Māori economy, Māori firms and productivity in Aotearoa New Zealand.