The Strategic Role of Enterprising Families in Transgenerational Growth and Continuity of Family Businesses in Uganda

Abstract

Family businesses form the biggest type of business globally and contribute greatly to the social and economic development at micro and macro-levels; yet majority of them fail to transition from generation to generation. This study aimed at identifying the strategic role played by enterprising families in ensuring transgenerational growth and continuity of family businesses in Uganda. Using a multi-case qualitative study approach from a social constructivism worldview, the study involved seven large size family businesses from the Greater Kampala Metropolitan Area. The study applied the resource-based view approach. Participants were purposively selected. Data was collected by means of in-depth interviews, observations and documents review and analyzed using NVivo version 12. Findings revealed that families whose businesses are able to transition from one generation to another use various resources and capabilities at their disposal to play a strategic role of establishing and consolidating a strong foundation on which both the family and the business depend to survive, grow and continue thriving. More specifically is the role played by the founder that sets a firm foundation for the family and business on which subsequent generations have to build. Individual and collective roles played by family members from different generations were also identified. Building on previous studies, this study conceptualizes a modified family succession and transition model necessary for transgenerational family business continuity. The study was limited to successful family businesses and never involved failed family businesses. Another study involving failed family businesses that initially seemed to perform well may give another perspective thereby enriching the findings and conclusions of this study.