Volume : IV, Issue : VII, July - 2015

FAMILY BUSINESS CONFLICTS AND THE SURVIVAL OF FAMILY OWNED BUSINESSES IN SOUTH-SOUTH, NIGERIA

Dr. Ikon, Michael A.

Abstract :

This paper investigated family business conflicts and the survival of family owned business in South – South, Nigeria. South –South, Nigeria is the major crude oil belt of Nigeria comprising six states of Akwa – Ibom, Bayelsa, Cross River, Delta, Edo and Rivers States. The main objective of the study was to ascertain the extent to which conflicts among family members affect the survival of family owned businesses in South-South, Nigeria. A sample size of 288 FOBs was drawn from a population of 2056 using Taro Yamani formula. Pannerselvam (2007) formula for proportional stratified sampling was used to allocate the sample size to each of the six states of South-South, Nigeria studied. The sample of 288 FOBs studied concentrated on ten types of businesses common in South-South, Nigeria namely: food processing, construction and faication, manufacturing, arts and crafts and weaving, transport, catering services, wood processing and furniture, ICT and commercial farming. The study used survey research design as its methodology. The hypothesis of the study was tested using Pearson Correlation (SPSS ver. 22) while Cronbach Alfa test statistics was used to test the reliability and validity of the research instrument. The major finding in the study .was that conflicts among family members significantly affected the survival of family owned businesses in South-South, Nigeria (Correlation is significant at the 0.01 level, 2-tailed, p value < .05). The study concluded that unresolved family conflicts including sibling rivalries on succession, disagreements on family investment opportunities and issues of tenure of non family members in the firm if not properly addressed could accelerate the collapse of family businesses in South-South, Nigeria. The study recommends that founders of family owned businesses need to tackle the issue of family conflicts as they arise, resolve these conflicts to ensure the survival of the family businesses and transfer of the businesses to next generations of family members.

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Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

Dr. Ikon, Michael A. Family Business Conflicts and The Survival of Family Owned Businesses in South-South, Nigeria Global Journal For Research Analysis, Vol: 4, Issue: 7 July 2015

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