The Role of Strategic Planning and Leadership in the Success of Family-Owned Construction Businesses in the Gauteng Province of South Africa

Purpose Family-owned businesses play a significant role in Gauteng Province's economic growth, particularly in the construction sector. This research aimed to assess how strategic planning and leadership have affected the activities, sustainability, and competitive position of family businesses. Methodology Using a qualitative approach, the study used case studies and semi-structured interviews with 30 individuals from family-operated firms based in Gauteng. Findings The findings showed that family members’ participation in strategic planning, informal planning processes, and effective vision and mission statements influenced operational activities and the sustainability of family businesses. However, the study identified gaps in formal documentation, long-term sustainability issues, and training needs. The study also recognized leadership styles and succession issues as important factors affecting family businesses’ success and competitiveness. Both transformational and democratic leadership styles appear effective in supporting employees' innovation initiatives and participation in decision-making. Finally, the study highlights the importance of effective succession planning. Conclusion This research contributes to the literature on family business management by offering insights on improving the sustainability, profitability, and continuity of family-owned construction firms in Gauteng Province. The results show that family businesses must use transformational and democratic leadership, develop thorough succession strategies, and manage family conflicts to succeed in the future.

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Publication Details

Journal
Reviews of Management Sciences
Published
2026-11-01
DOI
https://doi.org/10.53909/rms.08.02.0378
Primary Topic
Family Business Performance and Succession
Type
article
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article

The Role of Strategic Planning and Leadership in the Success of Family-Owned Construction Businesses in the Gauteng Province of South Africa

Victoria Adekomaya
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Reviews of Management Sciences
Family Business Performance and Succession
article

The Role of Strategic Planning and Leadership in the Success of Family-Owned Construction Businesses in the Gauteng Province of South Africa

Victoria Adekomaya
article en

Abstract

Purpose Family-owned businesses play a significant role in Gauteng Province's economic growth, particularly in the construction sector. This research aimed to assess how strategic planning and leadership have affected the activities, sustainability, and competitive position of family businesses. Methodology Using a qualitative approach, the study used case studies and semi-structured interviews with 30 individuals from family-operated firms based in Gauteng. Findings The findings showed that family members’ participation in strategic planning, informal planning processes, and effective vision and mission statements influenced operational activities and the sustainability of family businesses. However, the study identified gaps in formal documentation, long-term sustainability issues, and training needs. The study also recognized leadership styles and succession issues as important factors affecting family businesses’ success and competitiveness. Both transformational and democratic leadership styles appear effective in supporting employees' innovation initiatives and participation in decision-making. Finally, the study highlights the importance of effective succession planning. Conclusion This research contributes to the literature on family business management by offering insights on improving the sustainability, profitability, and continuity of family-owned construction firms in Gauteng Province. The results show that family businesses must use transformational and democratic leadership, develop thorough succession strategies, and manage family conflicts to succeed in the future.

Reviews of Management SciencesVol. 8(2)
University of Johannesburg (ZA)
Decent work and economic growth
Openalex Percentile: Top 7%
Family Business Performance and Succession
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