Family Business Governance and Continuity : The Influence of Family Business Governance on Business Continuity in Rwanda and Tanzania.

ABSTRACT This study explores the influence of family business governance on the continuity of family enterprises in Rwanda and Tanzania, two sub-Saharan countries where family-owned businesses form a substantial part of the economy. While family businesses are critical for employment generation and economic development, they often face significant challenges in surviving across generations, primarily due to governance-related issues. Using a qualitative, interpretivist research design grounded in relativistic ontology and constructionist epistemology, the study employs a multiple case study approach to analyze governance practices in ten family businesses across both countries. Data was collected through semi-structured interviews with 10 family businesses participants from first to third generations and supported by documentary analysis of governance-related business documents. The thematic analysis reveals five central themes that underpin continuity: formalized governance structures, professionalization and role separation, succession as a strategic imperative, conflict management, and the influence of socio-cultural dynamics. Findings highlight that family businesses with structured governance such as family constitutions, advisory boards, and defined succession plans demonstrate greater continuity and resilience compared to those with informal or reactive governance approaches. The study contributes to both theoretical and practical understandings by proposing a governance-based model of continuity. It emphasizes that effective governance not only aligns family and business goals but also mitigates conflict and facilitates leadership transitions. The research addresses a significant gap in African family business literature and offers strategic insights for policymakers and practitioners aiming to strengthen family business sustainability in similar socio-economic contexts.

Publication Details

Journal
Jonkoping University Library (Jönköping University)
Published
2025-01-01
Primary Topic
Family Business Performance and Succession
Type
article
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article

Family Business Governance and Continuity : The Influence of Family Business Governance on Business Continuity in Rwanda and Tanzania.

Jonkoping University Library (Jönköping University)
Family Business Performance and Succession
article

Family Business Governance and Continuity : The Influence of Family Business Governance on Business Continuity in Rwanda and Tanzania.

article en

Abstract

ABSTRACT This study explores the influence of family business governance on the continuity of family enterprises in Rwanda and Tanzania, two sub-Saharan countries where family-owned businesses form a substantial part of the economy. While family businesses are critical for employment generation and economic development, they often face significant challenges in surviving across generations, primarily due to governance-related issues. Using a qualitative, interpretivist research design grounded in relativistic ontology and constructionist epistemology, the study employs a multiple case study approach to analyze governance practices in ten family businesses across both countries. Data was collected through semi-structured interviews with 10 family businesses participants from first to third generations and supported by documentary analysis of governance-related business documents. The thematic analysis reveals five central themes that underpin continuity: formalized governance structures, professionalization and role separation, succession as a strategic imperative, conflict management, and the influence of socio-cultural dynamics. Findings highlight that family businesses with structured governance such as family constitutions, advisory boards, and defined succession plans demonstrate greater continuity and resilience compared to those with informal or reactive governance approaches. The study contributes to both theoretical and practical understandings by proposing a governance-based model of continuity. It emphasizes that effective governance not only aligns family and business goals but also mitigates conflict and facilitates leadership transitions. The research addresses a significant gap in African family business literature and offers strategic insights for policymakers and practitioners aiming to strengthen family business sustainability in similar socio-economic contexts.

Jonkoping University Library (Jönköping University)
Openalex Percentile: Top 41%
Family Business Performance and Succession
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