EXPLORING STRATEGIC BEHAVIOURS OF FAMILY BUSINESSES IN SUB-SAHARAN AFRICAN CONTEXT

The study investigates the effects of strategic behavioural differences on firm contribution to regional development related to the characteristics of family and nonfamily firms. The study questions whether there might be an association between the firm strategic behaviours, the performance of firms and the development of the regional economies that are shaped by localised institutional influences. Family businesses that are characterised by family ownership, managerial influence and governance, are a common business entity in both developed and developing economies. Despite their predominance, there is a dearth of academic literature examining how the presence and performance of family businesses might explain the development of regional economies. Furthermore, several studies have argued that specific spatial characteristics (e.g. location, size, age and industry) can indeed explain the family firms’ strategic decision-making and behaviours. We contribute to theoretical development by developing and testing a multilevel model exploring ways family firms’ strategic behaviours and their performance have explanatory power over regional development. The study established that there exist strategic differences between family and non family businesses, which influence their differentiated contribution to regional development outcomes. The study concludes with implications for practice and policy.