RELATIONSHIP BETWEEN GOVERNANCE STRUCTURES AND ORGANIZATIONAL PERFORMANCE OF FAMILY OWNED BUSINESSES IN NAIROBI COUNTY
Abstract
A family business is a commercial organization in which decision-making is influenced by multiple generations of a family, related by blood or marriage or adoption, who has both the ability to influence the vision of the business and the willingness to use this ability to pursue distinctive goals. It was against this background information the study sought to determine relationship between governance structures and organizational performance with special focus on family owned businesses in Nairobi County. The study employed agency theory as study theory. This study used descriptive research design. The target population consisted of 1200 employees working for MSFBs family business within the Nairobi County. Stratified sampling technique used to select 92 respondents. Questionnaire was used as the main data collection instrument. The study used the quantitative method of data analysis with the help of inferential and descriptive statistics. The study concluded that governance structures influences business performance in Nairobi County. The study recommended. The study recommended that more family businesses should adopt multiple directorship structure of governance since the members provided important information related to new policies, trade secrets and practices among business organizations which inspire better performance.
Key Words: Family-Owned Firms, Governance Structure
CITATION: Hinga, V. N., Gichunge, E., & Njeru, E. (2022). Relationship between governance structures and organizational performance of family businesses in Nairobi County. The Strategic Journal of Business & Change Management, 9 (2), 14-24.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i3.2351
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