International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Do Leadership Roles Affect Survivability of Family Businesses in Developing Economies?

Author(s): Olayinka A Abiodun, Emmanuel K Agbaeze, Bamidele S Adeleke, Nwanneka C Ghasi, Anthony O Ude

Family businesses in many developing economies have continually been plagued with the issues of leadership tussle emanating from the owner-manager power. The study assesses the effect that leadership plays on the survivability (survival success) of family businesses in Nigeria. This study utilized a survey design, to gather data from five hundred and two respondents who were owners/founders and top management of selected family businesses in southwestern Nigeria. The data collected through the closed ended questionnaires were tested with linear regression at 0.05 level of significance. The finding revealed that leadership roles positively affect the long-run success of family businesses in Nigeria. Informed by this finding, the study concluded that there is a positive link between leadership method and survivability (i.e. survival) of family businesses in developing economy like Nigeria. The study advised that a new paradigm shift in leadership (i.e. adaptive type of leadership) should be considered by family businesses operating in Nigeria. This would ameliorate the owners-managers leadership tussle that derails many family businesses in Nigeria.