Dynamic capabilities of family business: A catalyst for survival and growth

Abstract

The purpose of the study is to investigate the dynamic capabilities of family business as a catalyst for survival and growth in Nigeria. A quantitative technique involving a descriptive survey was adopted for the study. A questionnaire measurement instrument was constructed and deployed on a sample of 410 respondents in the selected family businesses. Copies of the questionnaire measurement instrument were conveniently distributed to employees of the selected family businesses to obtain data for the study. Exploratory Factor Analysis (EFA) was used to validate the constructs in the measurement instrument. Structural Equation Modeling (SEM) was used to estimate the structural relationship between constructs of family business dynamic capabilities for survival and growth. The results showed that sensing and seizing, learning and reconfiguration and succession planning capabilities of family business have a significant positive effect on survival and growth. Therefore, family business managers should effectively deploy sensing and seizing, learning and reconfiguration and succession planning capabilities to enhance business survival and growth.