- Title
- A framework for enhancing the transgenerational potential of indigenous african family businesses
- Creator
- Matchaba-Hove, Mtonhodzi
- Subject
- Family-owned business enterprises -- Succession Indigenous peoples -- Economic conditions
- Date Issued
- 2020
- Date
- 2020
- Type
- Thesis
- Type
- Doctoral
- Type
- DCom
- Identifier
- http://hdl.handle.net/10948/48894
- Identifier
- vital:41168
- Description
- Family businesses are the backbone of many economies around the globe and are believed to constitute over two-thirds of all businesses worldwide. For nearly 300 years, the Southern African economy has been developing as a consequence of the contribution of family businesses to the region’s economy. Despite their importance to the economies of countries, their overall failure rate remains high. Given the important economic and societal contribution that family businesses make, their survival rates are a matter of concern. As far as can be established, little research has been conducted among indigenous African family businesses. The research done to date lacks depth in terms of the topics covered and the countries sampled. The majority of studies on family businesses have been done in European, American and Asian settings. Notably, the research project on Successful Transgenerational Entrepreneurship Practices (STEP) has investigated transgenerational entrepreneurship among family businesses around the world. The STEP project proposes a theoretical framework, known as the STEP framework, which to date has not been applied to the indigenous African context. There is a great need for deeper insights into, and an increased understanding of the practices implemented among indigenous African family businesses that have survived across the generations, and of the context in which these businesses operate. Therefore, the primary objective of this study is to explore and describe the factors that influence the transgenerational potential of indigenous African family businesses so as to assess the appropriateness of an existing non-African framework, namely the STEP framework, and to reconfigure it for the African context. The STEP framework proposes that various contextual factors influence both the entrepreneurial orientation and the familiness resource pools of family businesses, which in turn influence each other, and ultimately the transgenerational potential of the family business. The underlying theory applied in the study is Hofstede’s Cultural Dimensions model. Hofstede’s model provides theoretical support for the belief that the context in which a theory or framework is applied has a big influence on the successful application of such a framework. Therefore, a need exists to contextualise the STEP framework to the context in which it is being applied. An interpretivist research paradigm and a qualitative methodological approach were deemed the most suitable for the current study, as this paradigm and approach enabled the researcher to address the dynamics and invisible issues within family businesses. The current study adopted a multiple case study methodology. Adopting this methodology allowed for a deeper understanding of the object of interest. The three cases were systematically selected, using purposive sampling, to ensure that a credible and indicative sample was obtained. The criteria used for selection were based on the STEP project guidelines and the three businesses selected were from South Africa, Zimbabwe and Botswana, of indigenous African heritage and have showed sustained growth and success since their establishment. The reason for these selection criteria was to ensure that the study appropriately addressed the defined research objectives and the gap in the body of knowledge on transgenerational entrepreneurship in the African context. The instrument used to guide the key-informant interviews in this research was a semi-structured interview schedule adapted from the STEP project interview schedule. Once all the data was collected, a combination of directed content analysis and explanation building was used to analyse the data. A framework for enhancing the transgenerational potential of indigenous African family businesses is proposed in this study, based on the practices adopted by the successful indigenous African family businesses which participated. The framework developed adapts the STEP framework for the indigenous African family business context. As in the STEP framework, the framework proposed for indigenous African family businesses highlights several external contextual factors as influencing both the familiness resource pools and the dimensions of entrepreneurial orientation. In the context of indigenous African family businesses, the external contextual factors most influential are the philosophy of Ubuntu, the collectivist national culture, as well as the community and extended family commitments. The external contextual factors, namely, the business environment and the industry in which the business operates, were found to be particularly influential on the entrepreneurial orientation displayed by the participating family businesses. All eight familiness resource pools, as well as the five dimensions of entrepreneurial orientation as proposed in the STEP framework, still form part of the framework proposed for indigenous African family businesses. However, for some the nature thereof differed somewhat from the original descriptions. Therefore, the original names were adapted to better describe these concepts as applicable to an indigenous African family business context. The proposed framework supports the multi-dimensional nature of performance outcomes among indigenous African family businesses. It proposes that in an indigenous African family business context, entrepreneurial performance outcomes are important to the extent that they contribute to achieving the financial performance outcomes, while the financial performance outcomes are important to the extent that they contribute to achieving the social performance outcomes. This study contributes to a greater understanding of successful indigenous African family businesses and their best practices, specifically an understanding of the practices adopted with regards to the familiness resource pools and entrepreneurial orientation. Furthermore, this study has expanded on the understanding of paternalism in that it has provides greater clarity on the nature of this leadership style, as well as the positive outcomes associated with it, in an African context. The study also has significance for educators, who can incorporate the lessons learned from it into their entrepreneurship and family business teaching.
- Format
- xvii, 345 leaves
- Format
- Publisher
- Nelson Mandela Metropolitan University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela Metropolitan University
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