Family Involvement and Performance of Family-Owned Restaurants in Abuja

Abstract

The relationship between family involvement and family business performance is well established through research in the global north. Due to the collectivism and care syndrome associated with the nuclear and extended family systems, the same cannot be said of Nigeria and Abuja in particular. Moreover, differences in individual characteristics is another factor that can affect the extent of involvement of family members in their family business. Taken together, this study seeks to determine the contributions of the father, mother, children and extended family member’s involvement to the financial and non-financial performance of family-owned restaurants in Abuja. Cross sectional research design, criterion sampling technique and census method were adopted for the study. The generated data via questionnaire from the restaurant founders were subjected to multiple regression analysis. The results showed that the effects of the father, mother, children and extended family member’s involvement on the financial and non-financial performance are positive and significant. Hence, we conclude that family-owned restaurants that involve the father, mother, children and extended family members achieve better improved financial and non-financial performance. Owing to the importance of generalising the findings, the generation of data from restauranteurs of different cultural affiliations in other parts of Nigeria and the world is suggested for further studies.