Pages: 24 , Volume: 9 , Issue: 1 , July 2018
Received: 02 Aug 2018 , Published: 07 August 2018
Views: 107 , Download: 76
Received: 02 Aug 2018 , Published: 07 August 2018
Views: 107 , Download: 76
|1||Kenneth Chukwujioke Agbim|
South Eastern Nigeria was between the year 1970 and 2017 characterized by turbulent and competitive business environment and economic boom and recession. Moreover, despite the decades of operation of family businesses in the zone, these businesses are still bedeviled by poor attitude to ownership/management succession planning and unsuccessful succession experiences. In spite of these incidences and government’s entrepreneurship incentives targeted at enhancing the performance of enterprises, this period witnessed the establishment, failure and closure of many family businesses in the zone. Owing to the enhancing effect of intra-firm network on business performance and the commonplaceness of the later in the study area, this study examines the effect of intra-firm network on family business succession. Survey design, proportionate stratified random sampling and simple random sampling techniques were employed to generate the study data. It was found from the data analysis that intra-firm network significantly and positively affects family business succession. To achieve successful succession, founder/CEOs need to be actively involved in the intra-firm network within the firm. This network relationship is important because it enhances a cordial working relationship between the family and the business. This network facilitates successful succession by ensuring that the sources of pre- and post- succession conflicts are well managed. Furthermore, the network supports the emergence of a successor based on knowledge, competence and experience rather than primogeniture and gender.
REFERENCES Abou-Moghli, A. & Al Muala, A. (2012). Impact of entrepreneurial networks in the success of business on-going stage in Jordanian manufacturing companies. American Academic & Scholarly Research Journal, 4(2), 1-9. Agbim, K. C. (2018). Business network effect on the institutionalization of family businesses in South Eastern Nigeria. Open Journal of Economics and Commerce, 1(1), 1-10. Althanassiou, N., Crittenden, W., Kelley, L. & Marquez, P. (2002). Founder centrality effects on the Mexican family firms’ top management group: Firm culture, strategic vision and goals, and firm performance. Journal of World Business, 37, 139-150. Amran, N. A. & Ahmad, A. C. (2010). Family succession and firm performance among Malaysian companies. International Journal of Business and Social Science, 1(2), 193-203. Anagbogu, I. (2008). Igbo business in Nigeria. Awka: Sellyoak. Animashaun, T. O. G. & Oyeneyin, A. B. (2002). Law of succession, wills and probate in Nigeria. Lagos: MIJ Professional. Ayranci, E. (2010). Family involvement in and institutionalization of family business: A research. Business and Economic Horizons, 3(3), 83-104. Barach, J. A. & Granitsky, J. B. (1995). Successful succession in family business. Family Business Review, 8(2), 131-155. Beek, M. V. (2004). Succession in family business: An innovative approach. Erasmus Universiteit, Rotterdam, The Netterland. Belenzons, S., Patacconi, A. & Zarutskie, R. (2015). Married to the firm? A large scale investigation of the social context of ownership. Paper presented at Duke University. Bjornberg, A. & Nicholson, N. (2012). Emotional ownership: The next generation’s relationship with family firm. Family Business Review, 25(4), 374-390. Borgatti, S. P. & Foster, P. C. (2003). The network paradigm in organizational research. Journal of Management, 29(6), 991-1013. Bowley, A. L. (1937). Elements of statistics. London: P. S. Kings and Staples. Burt, R. S. (1992). Structural holes: The social structure of competition. Massachusetts: Harvard University Press. Burt, R.S. (2000). The network structure of social capital. In R. Sutton & Y. Staw (Eds.), Research in organizational behaviour. Greenwich, CT: JAI press. Calzada, M. A. H., Moheno, J. M. & Hernandez, B. C. S. (2015). Exploring family-owned businesses in the State of Hidalgo, Mexico. European Scientific Journal, 11(19), 125-145. Cao, Q., Maruping, L.M. & Takeuchi, R. (2006). Disentangling the effects of CEO turnover and succession on organizational capabilities: a social network perspective. Organization Science, 17, 563-576. Chrisman, J. J., Chua, J. H., Pearson, A. W. & Barnett, T. (2012). Family involvement, family influence, and family-centered non-economic goals in small firms. Entrepreneurship Theory & Practice, 36(2), 267-293. doi: 10.1111/j.1540-6520.2010.00407.x Collins, C.J. & Clark, K. (2003). Strategic human resource practices, Top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage. Academy of Management Journal, 46, 740-751. Distelberg, B. & Sorenson, R. L. (2009). Updating systems concepts in famiy businesses: A focus on values, resource flow, and adaptability. Family Business Review, 22(1), 65-81. Duman, R. (1992). Family firms are different. Entrepreneurship Theory & Practice, 17, 13-21. El-Chaarani, H. (2014). The success keys for family firms: Comparison between Lebanese and French systems. Lebanese Science Journal, 15(2), 133-150. Erven, B. L. (2007). Management succession issues in family business. Lagos Organization Review, 5(9), 122-129. Esuh, O. L., Mohd, S. M. & Adebayo, O. I. (2011). A Conceptual framework of family business succession: Bane of family business continuity. International Journal of Business and Social Science, 2(18), 106-113. Farrington, S. M., Venter, E. & Boshoff, C. (2010). The influence of family and non-family stakeholders on famlily business success. Southern African Journal of Entrepreneurship and Small Business Management, 107(3), 32-60. Fishman, A. (2009, December 13). When business is kept in the family. Sunday Times Newspaper, p.2. Gbadegeshin, S. A. (2013). Awareness of “ownership succession” and family business continuity. International Journal of Business and Management Invention, 2(9), 72-87. Gersick, K. E., Davis, J. A., McCollom, M., Hampton, M. & Lansberg, I. (2007). Generation to generation - life cycles of the family business. Boston: Harvard Bsuiness School Press. Ghingold, M. & Johnson, B. (1997). Value added in business markets: Implications for procurement and marketing. Industrial Marketing Management, 26, 271-280. Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78(6): 1360- 1380. Granovetter, M. (1983). The strength of weak ties: A network theory revisited. Sociological Theory, 1, 201-233. Kozan, M. K. & Akdeniz, L. (2014). Role of strong versus weak networks in small business growth in an emerging economy. Administrative Sciences, 4, 35-50. doi: 10.3390/admsci4010035 Krejcie, R. V. & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610. Le Breton-Miller, I. & Miller, D. (2009). Agency vs. stewardship in public family firms: A social embeddedness reconciliation. Entrepreneurship Theory & Practice, 33(6), 1169-1191. Le Breton-Miller, I., Miller, D. & Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory & Practice, 28(4), 305-328. Liu, N & Zhang, H (2014). The role of CEO.s intra-frim network in innovation orientation of hi-tech entrepreneurial firms. Biotechnology: An Indian Journal, 10(22), 14014-14020. Luna, G. (2012). Planning for an American higher education leadership crisis: The sucession issue for administrators. International Leadership Journal, 4(1) 56-79. Lungeanu, R. & Ward, J. L. (2012). A governance-based typology of family foundations: The effect of generation stage and governance structure on family philanthropic activities. Family Business Review, 25(4), 409-424. Martinez, A. B., Galvan, R. S. & Palacios, T. B. (2013). Study of factors influencing knowledge transfer in family firms. Intangible Capital, 9(4), 1216-1238. doi: org/10.3926/ic.405 Mazzola, P., Machisio, G. & Astrachan, J. (2008). Strategic planning in family business: A powerful developmental tool for the next generation. Family Business Review, 21(3), 239-258. Meijaard, J. (2005). Business transfer in the Netherlands. In Y. H. A. J. Snijders, Entrepreneurship in the Netherlands business transfer: A new start (pp. 17-29). Zoetermeer: Eim Business & Policy Research. Memili, E. (2015). Performance and behaviour of family firms. International Journal of Financial Studies, 3, 423-430. doi:10.3390/ijfs3030423 Miller, D., Le Breton-Miller, I. & Lester, R. H. (2011). Family and lone founder ownership and strategic behaviour: Social context, identity and institutional logics. Journal of Management Studies, 48(1), 1-25. Miller, D., Le Breton-Miller, I. & Schnolnick, B. (2008). Stewardship vs. stagnation: An empirical comparison of small family and non-family business. Journal of Management Studies, 45(1), 51-78. Mugo, M., Minja, D. & Njanja, L. (2015). The corporate growth strategies adopted by local family business in the manufacturing sector in Nairobi county, Kenya. European Journal of Business and Innovation Research, 3(1), 1-10. Nelton, S. (1998). The rise of women in family firms: A call for research now. Family Business Review, 11(3), 215-218. Neuman, L. (2006). Social research methods: Qualitative and quantitative approaches. London: Pearson International. Nwadukwe, U. C. (2012). The effect of Igbo inheritance culture on management succession in private indigenous enterprises in south eastern Nigeria (Unpublished Ph.d thesis). University of Nigeria, Enugu Campus, Enugu. O'Donnell, A. (2004). The nature of networking in small firms. Qualitative Market Research: An International Journal, 7(3), 206-217. Ogundele, O. J. K., Idris, A. A. & Ahmed-Ogundipe, K. A (2012). Entrepreneurial succession problems in Nigeria’s family businesses: A threat to sustainability. European Scientific Journal, 8(7), 208-227. Okonkwo, C. C. (1979). Introduction to Nigerian law. London: Sweet and Maxwell. Okoro, N. (1971). Integration of the customary and general (England) laws of succession in Eastern Nigeria. In S. Sagay, Nigeria law of succession: Principles, cases, statutes and commentaries. Lagos: Malthouse Press. Onuoha, B. C. (2013). Poor succession planning by entrepreneurs: The bane of generational enterprises in South-East, Nigeria. AFRREV International Journal of Arts and Humanities, 2(2), 270-281. Onuoha, P. (2010). The discriminatory property inheritance under customary law in Nigeria: NGO to the rescue. International Journal of Not-for-Profit Law, 10(2). Retrieve from http://www.icnl.org/knowledge/ijn/ vol10iss2/art_4htm on June 8, 2017. Ottih, L. O. (2014). Entrepreneurship: Personality, process and enterprise. Port Harcourt: Pearl. Ouweland, K. V. D. (2017). Intra-organizational networks for innovation: The effects of strategies, absorptive capacity, and cross-unit knowledge transfer between individuals on innovative work behavior. Warandelaan: Tilburg University. Pontent, S., Worsch, C. & Gagne, M. (2007). An exploration of the generational differences in levels of control held among family businesses approaching succession. Family Business Review, 20(4), 337-354. Poza, D. (2014). Family business. New York: South-Western: Cengage Learning. Pyromalis, V. D. & Vozikis, G. S. (2009). Mapping the successful succession process in family firms: Evidence from Greece. International Entrepreneurship and Management Journal, 5(1), 439-460. Ramona, K. Z., Hoy, F., Poutziouris, P. Z. & Steier, L. P (2008). Emerging paths of family entrepreneurship research. Journal of Small Business Management, 46(3), 317-330. Segaro, E. (2012). Internationalization of family SMEs: The impact of ownership, governance and top management team. Journal of Management and Governance, 16(1), 147-169. Sharma, P., Chrisman, J. J. & Chua, J. H. (2003). Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18(5), 667-687. Shepherd, D. & Zacharakis, A. (2000). Structuring family business succession: An analysis of the future leaders’ decision making. Entrepreneurship Theory & Practice, 24, 25-39. Sirec, K. & Bradac, B. (2009). How does networking impact the SMEs growth.Organizacija, 42 (2), 59-66. doi: 10.2478/V10051-0051-009-0003-4 Sraer, D. & Teshmar, D. (2006). Performance and behaviour of family firms: Evidence from the French Stock Market. Retrieved from http://www.familyfirms.ch/papers/paper12 pdf on April 10, 2016. Ukaegbu, C. C. (2003). Entrepreneurial succession and post-founder durability: A study of indigenous private manufacturing firms in Igbo States of Nigeria. Journal of Contemporary African Studies, 2(1), 32-45. Venter, E., van der Merwe, S & Farrington, S. (2012). The impact of selected stakeholders on family business continuity and family harmony. Southern African Business Review, 16(2), 69-96. Warnar, P. (2012). Family business and knowledge transfer: How to survive to the next generation. Delft University of Technology. Westhead, P., Wright, M. & McElwee, G. (2011). Entrepreneurship perspectives and cases. London: Pearson Education. Zahra, S. A., Hayton, J. C. & Salvato, C. (2012). Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory & Practice, 28(4), 363-381. Zellweger, T. M. & Nason, R. S. (2008). A stakeholder perspective on family firm performance. Family Business Review, 21, 203-216.