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The Effects of Innovation on the Entrepreneurial Performance of Family Businesses with Special Reference to Nyaradzo Group, Zimbabwe

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  • Tholakele Nkomo

    (Department of Business Management, National University of Science & Technology)

  • Mlisa Jasper Ndlovu

    (Department of Business Management, National University of Science & Technology)

Abstract

Family businesses are fast growing in earning consideration as key drivers of socio-economic development and entrepreneurial performance due to their multifaceted contributions to the economy. Despite the crucial role they play in the economy, family businesses face various challenges that stifle their potential and contribution to socio-economic development. In order to effectively contribute to economic development, family businesses need to establish and maintain their competitiveness. Innovation is widely acknowledged as one of the key factors in family businesses’ entrepreneurial performance. This study therefore sought to establish the effects of innovation on firm’s entrepreneurial performance focusing on family businesses. The main objective of the study is to investigate the effect of innovation on entrepreneurial performance of family businesses. The study is anchored on Schumpeter’s theory of entrepreneurship and innovation; the theory of the innovative firm; and the resource-based theory. To realise the research objectives, a descriptive – explanatory research design with a survey strategy was employed. The target population for the study was the entire 850 members of the Nyaradzo Group including the organisation’s management. A stratified probability sampling technique was used, and a sample size of 250 was adopted, this constituted at least 30% of the population. The main instrument for data collection was a semi-structured questionnaire administered to the target respondents. The SPSS tool was used to analyse quantitative data, whilst thematic approach was used to analyse qualitative data. The findings reveal that firm size had significant moderating effect on the innovation and entrepreneurial performance of family businesses. The study recommends that family businesses’ practitioners should consider implementing innovations to enhance their competitiveness, especially innovations with higher novelty that are new to the market, industry, country or the world. To achieve this, family businesses need to form linkages and cooperate in innovation with knowledge generating institutions that provide new knowledge.

Suggested Citation

  • Tholakele Nkomo & Mlisa Jasper Ndlovu, 2023. "The Effects of Innovation on the Entrepreneurial Performance of Family Businesses with Special Reference to Nyaradzo Group, Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1366-1384, September.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:1366-1384
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    References listed on IDEAS

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    1. Zoltán J. Acs & David B. Audretsch & Erik E. Lehmann & Georg Licht, 2017. "National systems of innovation," The Journal of Technology Transfer, Springer, vol. 42(5), pages 997-1008, October.
    2. Cucculelli, Marco & Peruzzi, Valentina, 2020. "Innovation over the industry life-cycle. Does ownership matter?," Research Policy, Elsevier, vol. 49(1).
    3. Vanessa Diaz-Moriana & Eric Clinton & Nadine Kammerlander & G. T. Lumpkin & Justin B. Craig, 2020. "Innovation Motives in Family Firms: A Transgenerational View," Entrepreneurship Theory and Practice, , vol. 44(2), pages 256-287, March.
    4. Koc, T. & Bozdag, E., 2017. "Measuring the degree of novelty of innovation based on Porter's value chain approach," European Journal of Operational Research, Elsevier, vol. 257(2), pages 559-567.
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