This study explores the different survival strategies employed by family-owned small and medium-sized businesses in Nigeria. The study delves into the dynamics of ensuring…
Abstract
Purpose
This study explores the different survival strategies employed by family-owned small and medium-sized businesses in Nigeria. The study delves into the dynamics of ensuring business continuity from founders to successors and identifies the success factors that can facilitate seamless leadership transition outcomes.
Design/methodology/approach
This study utilised a qualitative multiple-case study approach, with the population consisting of founders from three medium-sized family businesses in Nigeria. Semi-structured interviews were the primary data collection tool used in the study. Furthermore, company documents were analysed to gain further insights into the leadership transition strategies employed in the selected businesses.
Findings
Successful transition and survival of family businesses are dependent on the founder's desire and support for transition, successor preparation, building trust and credibility in successors, and instilling a clear vision for the business.
Research limitations/implications
The study's findings will provide valuable insights to leaders of family-owned SMEs, specifically in the development of effective leadership transition action plans. It should be noted that the study is limited to three family-owned businesses in two locations in Nigeria, which may restrict the generalisability of the findings. Despite this, the study offers novel contributions to the current literature by presenting practical strategies for achieving the survival of family businesses in an emerging economy.
Originality/value
This study proposed strategies for business survival, continuity, sustainability and seamless leadership transition for small and medium-sized family-owned businesses. Importantly, the study recommends action plans for present and prospective family business leaders to deepen succession pathways.
Details
Keywords
Okey Nwuke, Chizoba Nwoye and Nnaemeka Onoyima
In many countries (Nigeria inclusive), major components of job creation and economic growth, are driven by small and medium-sized businesses that are mostly family-owned. However…
Abstract
In many countries (Nigeria inclusive), major components of job creation and economic growth, are driven by small and medium-sized businesses that are mostly family-owned. However, over 50% of such businesses fail after intrafamily leadership transition. This chapter seeks to understand and explain the strategies that owners of medium-sized family-owned businesses explore in ensuring the sustainability of their business after a leadership transition from the founder. The focus is on three business leaders who sustained their family-owned businesses after a leadership transition from their founders. The conceptual framework is based on the transformational leadership theory. Data collection was from artefacts, company documents and semi-structured, face-to-face interviews. Analysis of data was supported by follow-up questions and member-checking to enhance the trustworthiness and credibility of the interpretations. Four themes that emerged were the founder's desire and support for transition, the preparation of successors or level of preparedness, trust and credibility of successors, and clarity of vision of both the founders and successors. Findings from this study may contribute to positive social change by providing leaders of African family-owned businesses with strategies for managing leadership transitions and ensuring the survival of the business after these transitions. Sustainability of family businesses might lead to job retention and creation, as well as enhance wellbeing and incomes of communities, family members and the African economy.