International Journal of Sub-Saharan African Research (IJSSAR)

Background: Family-owned businesses (FOBs) constitute a major portion of Nigeria’s private-sector economy and contribute significantly to employment creation, gross domestic product (GDP), and national development. Despite their prominence, evidence shows that a majority of family enterprises in Nigeria do not survive beyond the founding generation due to certain issues.
Objective: This study investigated and analysed management principles and sustainability of selected family-owned businesses in Nigeria. Specifically, this study focused on Dangote Group, Eleganza Industries, Innoson Vehicle Manufacturing, and Tolaram Group that represent high-profile examples of Nigerian family enterprises that have transitioned from humble origins to multinational status.
Method: This study adopts a qualitative multiple-case study design, suitable for exploring complex phenomena within their real-life context (Yin, 2018).
Result: The analysis reveals that the most enduring Nigerian family enterprises have institutionalised governance mechanisms, embraced professionalisation, diversified their operations, and developed a stewardship mindset that transcends individual family interests.
Conclusion: The study concludes that family-owned businesses (FOBs) constitute the backbone of Nigeria’s private sector, contributing significantly to employment generation, innovation, and economic diversification. Unique contribution: This study contributes to management theory by contextualising established global family business theories models within the Nigerian socio-cultural and economic milieu. The study also integrates empirical findings and illustrative case analyses of Nigerian family firms to identify patterns of sustainability. The study also contributes to the growing African management literature by providing a context-specific model of family business sustainability. Key recommendation: The study recommends amongst others that family business owners should codify family governance structures and institutionalise succession planning early. Similarly, policymakers should develop a national family business policy framework while academic and research institutions should expand family business scholarship in Africa and also engage in collaborative research between scholars, chambers of commerce and business families.