Pages: 20 , Volume: 9 , Issue: 1 , July 2018
Received: 02 Aug 2018 , Published: 07 August 2018
Views: 113 , Download: 64
Received: 02 Aug 2018 , Published: 07 August 2018
Views: 113 , Download: 64
|1||Kenneth Chukwujioke Agbim|
ABSTRACT South Eastern Nigeria is dotted with family businesses. However, some of these family businesses are staffed with non-professionals whose capabilities are not regularly improved because of their status of non-membership of any professional body. The trickledown effect of the foregoing is evident in the standard of their work. Owing to the commonplaceness of professional networks in the zone, this study investigates the effect of professional networks on family business professionalization. The study adopted survey design, and proportionate stratified and simple random sampling techniques to generate the study data using questionnaire. Linear regression was employed to test the research hypothesis. It was found that professional network affects family business professionalization significantly and positively. Thus, professional bodies and government regulatory agencies should form synergy for the purpose of sensitizing family businesses on the benefits of employing professionals and allowing the professionals to network. Such professional network activities may be the filter family businesses need to maintain the relevant standards in their organizational procedures and practices. Again, family businesses can become professionalized and by extension ensure generational transfer by ensuring that family business founder/CEO or descendant/CEO and employees of the business are actively involved in professional networks. This can be achieved by employing professionals and/or sending family member(s) to school to acquire professional education and qualification. Since networks are forms of resources, the CEO and the employees should maintain their membership of professional bodies for personal and business benefits.
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