Pages: 20 , Volume: 9 , Issue: 1 , July 2018
Received: 02 Aug 2018 , Published: 07 August 2018
Views: 76 , Download: 47
Received: 02 Aug 2018 , Published: 07 August 2018
Views: 76 , Download: 47
|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.
REFERENCES 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. 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. Arregle, J. L., Hitt, M. A., Sirmon, D. G. & Very, P. (2007). The development of organizational social capital: Attributes of family firm. Journal of Management Studies 44(1), 73-95. Bchini, B. (2014). Entrepreneurship: A key to minimizing the risks of Tunisian family businesses. Journal of Business Studies Quarterly, 5(4), 68-80. 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. Bratkovic, T., Antoncic, B. & Ruzzier, M. (2009). The personal network of the owner-manager of a small family firm: The crucial role of the spouse. Managing Global Transition, 7(2), 171-190. Carney, M. (2007). Minority family business in emerging markets: Organization forms and competitive advantage. Family Business Review, 20, 289-300. Chen, H. L. & Hsu, W. T. (2009). Family ownership, board independence, and R & D Investment. Family Business Review, 22, 347-362. Chen, H. L. (2011). Internationalization in Taiwanese family firms. Global Journal of Business Research, 5(4), 15-23. Chittoor, R. & Das, R. (2007). Professionalization of management and succession performance: A vital linkage. Family Business Review, 20, 65-79. Chrisman, J. J., Chua, J. H. & Kellermanns, F. W. (2009). Priorities, resource stocks, and performance in family and non-family firms. Entrepreneurship Theory & Practice, 33(3), 739-760. 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 Chua, J. H., Chrisman, J. J. & Bergiel, E. B. (2009). An agency theoretical amalysis of professional family firms. Entreprneurship Theory & Practice, 33, 355-372. Chua, J. H., Chrisman, J. J., & Sharma, P. (2003). Succession and non-succession concerns of family firms and agency relationship with non-family managers. Family Business Review, 16(2), 89-108. Claver, E., Rienda, L. & Quer, D. (2009). Family firms’ international commitment: The influence of family-related factors. Family Business Review, 22(2), 125-135. Colli, A. (2003). The history of family business, 1850-2000. Cambridge: Cambridge University Press. Conner, T. (2007). Research notes and commentaries, market orientation and performance. Strategic Management Journal, 28, 957-959. Eybers, C. (2010). Copreneurs in South African small and medium-sized family businesses. Nelson Mandela Metropolitan Univeristy, Port Elizabeth, South Africa. Fang, H., Chrisman, J. J., Memili, E. & Welsh, D. H. B. (2012). Family firms’ professionalization: Institutional theory and resource-based view perspectives. Small Business Institute Journal, 8(2), 12-34. Gold, J., Rodgers, H. & Smith, V. (2002). The future of the professions: Are they up to it? Foresight, 4(2), 46-52. Gomez-Mejia, L. R., Makir, M. & Larraza-Kintana, M. (2010). Diversification decisions in family-controlled firms. Journal of Management Studies, 47(2), 223-252. Greenwood, R., Suddaby, R., & Hinings, C. R. (2002). Theorizing change: The role of professional associations in the transformation of institutionalized fields. Academy of Management Journal, 45, 58-80. Hall, A. & Nordqvist, M. (2008). Professional management in family businesses: Toward an extended understanding. Family Business Review, 21(1), 51-69. Heck, R. Z., Hoy, F., Poutziouris, P. Z. & Steier, L. P. (2008). Emerging paths of family entrepreneurship research. Journal of Small Business Management, 25(3), 317-330. Howorth, C., Westhead, P. & Wright, M. (2010). Professionalization of family firms through management buyout: Longitudinal case study analysis. CMBOR Working Paper. Hwang, H. & Powell, W. W. (2009). The rationalization of charity: The influences of professionalization in the non-profit sector. Administrative Science Quarterly, 54, 268-298. Krejcie, R. V. & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610. Lee, K. S. Lim, G. H. & Lim, W. S. (2008). Family business succession: Appropriation risk and choice of successor. Academy of Management Review, 28, 657-666. Lin, J. & Si, S. X. (2010). Can guanxi be a problem? Contexts, ties, and some unfavourable consequences of social capital in China. Asia Pacific Journal of Management, 27, 561-581. Lin, S. & Hu, S. (2007). A family member or professional management? The choice of CEO and its impact on performance. Corporate: An international review, 15(6), 1348-1362. Meinttjes, C. & Niemann-Struweg, I. (2009). The role of professional body in professionalization: The South African public relation case. Prism, 6(2). Retrieved from http://praxisimassey.ac.nz/prism on-line journal. Mieg H. A. (2001). Professionalization and professional activities in the Swiss market for environmental services, In F. W. Leal (Ed.) Environmental careers, environmental employment and environmental training (Pp133-160). Frankfurt: Lang Verlag. Mieg, H. A. (2008). Professionalization and professional identities of environmental experts: The case of Switzerland, Environmental Sciences, 5(1), 41-51. doi:10.1080/15693430701859653 Morgan, J. F. W. (1998). The natural history of professionalization and its effects on valuation theory and practice in the UK and Germany. Journal of Property Valuation and Investment, 16(2), 185-206. Neuman, L. (2006). Social research methods: Qualitative and quantitative approaches. London: Pearson International. 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. Ozkan-Canbolat, E. (2014). Organizational network effect on diversification strategies. Strategic Management Quarterly, 2(2), 27-48. Parada, M. J., Nordqvist, M. & Gimeno, A. (2010). Institutionalizing the family business: The role of professional associations in fostering a change of values. Family Business Review, 26, 1-18. Pearson, A. W., Carr, J. C. & Shaw, J. C. (2008). Toward a theory of familiness: A social capital perspective. Entrepreneurship Theory & Practice, 32, 949-969. Poza, D. (2014). Family business. New York: South-Western: Cengage Learning. Qurashi, A., Hussain, I., Mushtaq, F. & Ullah, A. (2013). The dilemma of success and failure in family business: Overcoming failure and attaining success. International Journal of Academic Research in Economics and Management, 2(4), 161-177. doi:10.6007/IJAREMS/v2-i4/121 Schulze, W. & Gedajlovic, E. R. (2010). Whither family business? Journal of Management Studies, 47 (1), 191-204. Schwerzler, D. (2010). Family business experts discusses: The difficult and emotionally destructive problems confronted. Georgia: Family Business Institute. Scranton, P. (1997). Endless novelty: Specialty production and American industrialization, 1865-1925. Princeton: Princeton University Press. Shepherd, D. A. & Haynie, J. M. (2009). Family business, identity conflict, and an expedited entrepreneurial process: A process of resolving identity conflict. Entrepreneurship Theory & Practice, 33(6), 1245-1264. 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 Stewart, A. & Hitt, M. (2012). Why can’t a family business be more like a nonfamily business? Modes of professionalization in family firms. Family Business Review, 25(1), 58-86. von Nordenflycht, A. (2010). What is a professional service firm? Toward a theory and taxonomy of knowledge-intensive firms. Academy of Management Review, 35, 155-174. Williams, C. C. & Nadin, S. (2014). Facilitating the formalization of entrepreneurs in the informal economy: Towards a variegated policy approach. Journal of Entrepreneurship and Public Policy, 3(1), 33-48. Zachary, R. K., Rogoff, E. G. & Phinisee, I. (2011). Defining and identifying family entrepreneurship: A new view of entrepreneurs. In M. Minnitti (Ed.), The dynamics of entrepreneurship: Evidence from the Global Entrepreneurship Monitor data (pp. 57-76). New York: Oxford University Press. 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.