Dynamics of Family Businesses and their Implications on Creation of Social Value: Evidence from Kenya a sub-Saharan Africa Country

Purpose: The relationship between family businesses and communities is becoming significant, especially with the current scholarly interests on the role of family businesses in regional development. This paper examines how family businesses in the ICT sector navigate the complex African institutional context using the prisms of ‘familiness’ and socio-cultural institutions to create socio-economic development in Kenya.

Design/methodology/approach: This paper draws on four business cases and anecdotal evidence from the Kenyan context to explore the overlap between family businesses and country specific culture ‘Harambee’ and how this influences firms’ social value creation.

Findings: The study develops an organising framework that can be used to study how the familial- cultural nexus act as a substitute for weak institutional environment and market uncertainties to enhance contribution of family firms to socio-economic development.

Research limitations/implications: The study focused on a single context within the wider economic context using a limited number of businesses cases which influences the interpretations of the findings. Practical implications: Family-owned or family controlled enterprises that are rooted in the local geographic and contextual space compels them to stay where they belong even during times of external crises (e.g. economic and financial). Hence this increases the resilience of the businesses and communities helping them to overcome the challenges during periods of economic turmoil. Social implications: The embeddedness of family firms in socio-cultural context enhance their ability to draw to influence the local communities. This enables family businesses to thrive and grow because of their access to social and cultural resources. Originality/value The study unveils the hidden potential emerging from entrepreneurial family businesses within the ICT sector that have become key agents of socio-economic development within sub-Saharan Africa.