The role of family resources on resilience of family businesses. A developing country perspective

Purpose This study aims to examine the association between family resource dimensions and the resilience of family business in a developing country, Uganda. Design/methodology/approach This study adopted a cross-sectional and quantitative approach. Data were collected from a sample of 308 family businesses using a self-administered questionnaire. Partial least squares structural equation modeling was employed using SmartPLS 4.0 software to analyze the results. Findings The findings reveal that all dimensions of family resources (human capital, social capital, and financial capital) are significantly and positively associated with family business resilience, with social capital exhibiting a stronger influence on resilience compared to financial and human capital. Research limitations/implications This study employed a cross-sectional design; thus, it was impossible to monitor changes in the behavior of family businesses over time. It may be possible to generalize the findings of this study to other developing countries. Practical implications For family businesses to enhance resilience, they should build and use community and business networks for support during crises and strengthen their skills and financial planning. Policymakers can support this by facilitating networking and mentorship opportunities. Social implications Consolidating social capital in family businesses enhances community cohesion and collective resilience, allowing family business owners to use networks for support during crises. Policymakers can support this by promoting family businesses to build networks for financial and human capital to strengthen their resilience. Originality/value This study offers initial empirical evidence by examining the relationship between family resource dimensions and the resilience of family businesses, which previous studies had not paid much attention to in existing literature. While similar studies exist in other developing countries, Uganda’s unique socio-cultural, institutional and economic environment provides new perspectives on how family resources, such as kinship labor and communal social capital, are mobilized to build resilience. This contextual specificity adds a novel contribution to the global discourse on family business resilience.