IMPACT OF FAMILY BUSINESS OPERATIONS ON INTERNATIONALISATION

Abstract

In light of the global marketplace becoming increasingly interconnected and competitive, understanding the dynamics of family businesses and their role in expanding operations across borders is of utmost importance. This study investigated the impact of family business operations on internationalisation. The study adopted a descriptive survey research design, using a structured questionnaire to collect required data from the focus respondent. A sample size of 300 was determined from the total population of 1 201 employees of the selected family businesses using the Slovin sample size determination formula. This study employed a simple linear regression method of data analysis for all the tested hypotheses. The results revealed that interpersonal relationship ((R2 = 0.089, Adj.R2 =0.085, P< 0.05) has a significant influrncr on internationalisation, succession planning ((R2 = 0.129, Adj.R2 =0.126, P< 0.05) has a significant influence on internationalisation, and talent management ((R2 = 0.134, Adj.R2 =0.130, P< 0.05) has a significant influence on internationalisation. This study concluded that interpersonal relationships play a crucial role in the internationalisation of family businesses, succession planning significantly impacts the internationalisation efforts of family businesses, and talent management practices significantly impact the internationalisation of family businesses. The study recommended that family businesses should prioritise fostering solid interpersonal relationships and open lines of communication among family members involved in the business; family businesses should develop robust succession plans that clearly outline the process and criteria for leadership succession. Family businesses should invest in talent management practices that align with their internationalisation goals.