Business Studies

Business Studies

Enhancing Family Business Succession through Intra-Firm Network: A Survey of Family Businesses in South Eastern Nigeria

Pages: 24  ,  Volume: 9  ,  Issue: 1 , July   2018
Received: 02 Aug 2018  ,  Published: 07 August 2018
Views: 52  ,  Download: 41

Authors

# Author Name
1 Kenneth Chukwujioke Agbim

Abstract

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.

Keywords

References

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