The Relationships Among Entrepreneurial Training Factors, Succession Planning, Social Capital, Entrepreneurial Leadership And Performance In Family Business
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Date
2020-12
Authors
Kamarudin, Muhamad Ali Imran
Journal Title
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Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Family business played a role in the national economic development. However, those in small and medium category (SME) has low survival rate. Less than two-third of the family business survived beyond the first generation. While, entrepreneurial training conducted by the government is rather generic with minimal emphasis given to addressing family-related issues in family business. This study aims to examine the relationship among entrepreneurial training factors, succession planning, social capital, entrepreneurial leadership and performance in family business. Using a convenience sampling technique, this cross-sectional study used questionnaires. A total of 396 usable responses were received from family business owners who attended the training provided by the government agencies. The hypothesized relationships among entrepreneurial training factors, succession planning, social capital, entrepreneurial leadership and performance were based on the Resource-Based View (RBV) and the Absorptive Capacity theory. This study employed Partial Least Square of Structural Equation Modelling (PLS-SEM) to test the hypotheses. The findings revealed that both family-orientation training design and family-centric trainer attributes have significant effects on the performance of family business. While succession planning plays a significant role in mediating the relationship between the entrepreneurial training factors, namely, training design and trainer attributes with the performance. Theoretically, this study contributes to the RBV theory where it discusses the knowledge resources from the training context, particularly factors within entrepreneurial training conducted by the government. This study suggested an exploration of succession planning and social capital as the mechanism in the knowledge absorption to be carried out in future research. As a practical implication, this study offers useful insight for the government agencies to formulate the right design which incorporates the family-orientation concept while focusing on the distinctive quality among trainers in delivering training to family business. In addition, family business should implement succession planning practice in realising favourable performance and continuity for the business.
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Keywords
Business