The role of strategic flexibility and dynamic capabilities on family business performance

Southern African Journal of Entrepreneurship and Small Business Management

Field Value
Title The role of strategic flexibility and dynamic capabilities on family business performance
Creator Pike-Bowles, Angela P. Townes, Juliet Chinyamurindi, Willie
Subject Business Management;Family Business family business; mediation; strategic flexibility; dynamic capabilities; performance; South Africa; scenario planning; competitive advantage
Description Background: Dynamic capabilities is a key strategic tool that family businesses can practice to enhance their business performance. Although family business research in South Africa has advanced over the last 10 years, there are still limited studies uncovering the impact of dynamic capabilities within family businesses.Aim: The aim of this research is to identify the mediating effect of strategic flexibility between the relationship of dynamic capabilities and family business performance.Setting: The study focussed on family businesses located in the Eastern Cape of South Africa.Method: The study followed a quantitative research approach. Data were collected using the questionnaire from a total of 347 respondents. The Hayes macro mediation model was used as the statistical analytical technique to ascertain the link.Results: The results revealed that strategic flexibility positively mediates the relationship between dynamic capabilities and family business performance. The strategic flexibility mediating relationship between scenario planning and family business performance was the strongest correlation of the five dynamic capabilities tested (environmental scanning, scenario planning, knowledge creation, culture, and formal organisation).Conclusion: Family businesses are urged to develop a dynamic capabilities model that emphasises their strategic flexibility. Specific focus should be placed on scenario planning aligned with strategic flexibility to ensure that businesses can anticipate and prepare for opportunities and threats.Contribution: This study contributes practical recommendations on the development and implementation of a dynamic capability model for family businesses.
Publisher AOSIS Publishing
Date 2024-02-09
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — —
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/sajesbm.v16i1.767
Source The Southern African Journal of Entrepreneurship and Small Business Management; Vol 16, No 1 (2024); 11 pages 2071-3185 2522-7343
Language eng
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Rights Copyright (c) 2024 Angela P. Pike-Bowles, Juliet Townes, Willie Chinyamurindi