Enterprise-Response Strategy and Family Business Continuity in Lagos State, Nigeria
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Date
2023-12
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Lead City University
Abstract
Family business holds the potential that guaranty economic sustainability through job creation, income generation for owners and becoming a source of revenue generation for the government through tax administration. However, family businesses in Nigeria are not living up to expectation given the several macro-environmental challenges they face. Considering the ripple effect of these environmental challenges on the sustainability of family business in Lagos State, this study examined the effect of firm's response strategy on family business continuity in Lagos State. The population was 8,395 owner-manager of family business in Lagos State and a sample size of 383 respondents computed using Cochran formula. The study adopted a purposive sampling technique. A validated questionnaires were used to collect data. The Cronbach’s alpha reliability coefficients for the constructs ranged from 0.72 to 0.91. The response rates of 89.7% was obtained. Data were analyzed using descriptive and inferential statistics. Findings revealed that ESR had significant effect on FBC (β= 0.499, t=7.256, p=0.000). CEE had significant effect on profitability (Adj. R2= 0.276, F(1,395)=150.333, p= 0.000). Organisation unlearning had significant effect on competitiveness advantage(R2= 0.305, F(1,395) = 173.070, p= 0.000).Management innovation had significant effect on market share (Adj. R2= 0.226, F(1,395)= 115.286, p= 0.000).Entrepreneurial knowledge had significant mediating effect on the interactions between enterprise-strategic response and continuity of family business in Lagos State, Nigeria(β=0.189, t= 3.962, p= 0.000, Q2 value =
0.267, 0.131).This study concluded that enterprise strategic response and entrepreneurial knowledge are critical success factors for family business. The study recommends that family- owned businesses in Lagos State should adopt appropriate strategic response by ensuring customer-employee engagement, unlearning obsolete practices, and ensure innovative management process; Likewise, they should take advantage of deploying appropriate
entrepreneurial knowledge which can be used to take advantage of business opportunities in changing environment.
Keywords: Enterprise strategic response, Entrepreneurial knowledge, Family business, Business continuity.
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Keywords
Enterprise strategic response, Entrepreneurial knowledge, Family business, Business continuity.