Family cultural patterns and business innovativeness in a developing economy

Abstract

The economic history of most businesses from the developed world to the developing world can be traced to the inception of family businesses. Family businesses are firms in which multiple generations of a family, related by blood, marriage or adoption influence the decision-making, the vision and the disposition to use their ability to pursue the family goals. Every family has a cultural pattern that influences their activities which can either promote or hinder innovativeness in family businesses. Thus, this study investigates the influence of family cultural patterns on the business innovativeness in Abuja, Nigeria. Three patterns of culture were discussed: bureaucratic, clan and market cultures while three research questions were raised. A sample of 168 respondents was drawn employing a simple random sampling technique. The descriptive and inferential statistics were used for data analysis. The findings indicated that bureaucratic and clan culture are negatively and significantly related to innovativeness while market culture is positively and significantly related to family businesses innovativeness. It is therefore recommended that family businesses should adapt or co-opt entrepreneurial culture into their existing culture for innovativeness that will consequently lead to survival and growth.