Entrepreneurial Orientation, Succession Planning and Performance of Family Owned Businesses in Lagos State, Nigeria
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Date
2023-12
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Lead City University
Abstract
Globally Family-Owned Businesses contribute to the success of many economies in the world. However, family-owned businesses in Nigeria have underperformed compared to the top 750 earners globally in 2018 and 2019. Entrepreneurial orientation and succession planning are two
strategic options crucial to family-owned business performance. On the strength of the resource- based view, family system and contingency theory the study examined the interaction between entrepreneurial orientation, succession planning, Omoluabi leader and family-owned business performance in Lagos state, Nigeria. This study adopted a quantitative research method, employing a cross-sectional survey research design with a purposive sampling method to test the model. The population consist of eight thousand three hundred and ninety-six (396) family businesses registered in Lagos State with NASME out of which three hundred and sixty-eight sample size was computed using the Cochran sample size formula. Three hundred and seventy two (372) owners and senior staff members of family businesses in Lagos state filled out the questionnaires with a response rate of 84.3%. The structured questionnaires adapted from past studies were assessed for validity and reliability with Cronbach alpha’s coefficient range between 0.774 and 0.934 via a pilot study and face validation by an expert panel comprising three scholars from Lead City University. The Partial Least-Square-Structural Equation Model was designed to assess the significance of the relationship by testing the hypotheses using SamrtPLS 4.0. The result rejected all the research hypotheses. The findings of the study revealed the following: Ho1 = Adj R2 =0.316, p=0.000, Q2 =0.182, entrepreneurial orientation influence
31.6% of customer satisfaction, Ho2 = Adj R2 =0.499, p=0.000, Q2 =0.246 entrepreneurial orientation dimension influences 49.9% of the firm growth Ho3 = Adj R2 = 0.302, p=0.000, Q2 =0.125 succession planning influence 30.2% of the business continuity of family-owned businesses in Lagos state. Ho4 = Adj R2 =0.478, p=0.000, Q2 =0.211 shows that entrepreneurial orientation and succession planning predict 47.8% performance of family-owned businesses in Lagos state. Ho5 moderated analysis = β =0.125; p< 0.025 shows that omoluabi leadership positively moderates entrepreneurial orientation and performance of family-owned businesses in Lagos state by 0.125. Furthermore, Ho6 = the path from Succession planning to performance is statistically insignificant (β= 0.138, t= 1.244, p=0.214), the path from Succession planning to Omoluabi leadership is statistically significant (β= 0.578, t= 7.441, p=0.000), and the path from Omoluabi leadership to the family business performance in Lagos state, Nigeria, is statistically significant (β= 0.208, t= 2.037, p=0.042). It significantly mediates the interaction between succession planning and family-owned businesses in Lagos state. The study concluded that entrepreneurial orientation and succession planning have a significant effect on the performance of family-owned businesses; omoluabi leadership also moderated the functional relationship between entrepreneurial orientation and the performance of family-owned businesses as well as mediated the relationship between succession planning and the performance of family-owned businesses in Lagos state. The study recommended using omoluabi leadership as a moderator and mediator for family-owned businesses in Nigeria. It also recommended developing underdeveloped sub-dimensions of entrepreneurial orientation and succession planning, as revealed by the inferential statistics.
Keywords: Entrepreneurial Orientation, Succession Planning, Omoluabi Leadership, Family Owned Business.
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Keywords
Entrepreneurial Orientation, Succession Planning, Omoluabi Leadership, Family Owned Business
Citation
Kate Turabian