Experiential learning of family business owners and its influence on business sustainability in Masvingo province of Zimbabwe

Abstract

The survival of family-owned businesses beyond the first generation continues to be negatively affected by the death or incapacitation of their founding members. Despite the contribution of family-owned businesses, about 50% of the total global GDP (Rahman et al. 2017) statistics show that only 3% of these businesses survive past the third generation (Kilic and Folizoz 2020). The demise of the founders of the family businesses results in the businesses’ collapse, often after ownership and management has been taken over by heirs, notwithstanding their experience gained from working with the founder members. This qualitative study explored the experiential learning of family business owners and its influence on business sustainability. The study also analysed the kinds of knowledge gained and the support provided by other family members. An interpretive paradigm was adopted in which a multiple-site case study involving three settings: rural, growth points and urban areas in Masvingo Province of Zimbabwe was employed. Two-interview series, complimented by nonparticipatory observations and photo elicitations explored the family business owners who were extracted through purposive, convenience and snowball sampling designs. Data from 21 family business owners explored was transcribed and analysed manually through open coding. The study drew on Kolb’s (1984) experiential learning theory to illuminate the study, and explain the experiential learning of the family business owners. The study found that family business owners across the three research settings experientially learnt through participation in business activities subsequent to observation, and also through reflection. Findings revealed that experiential learning had a direct influence on business sustainability within a given generation. Contextual variations in learning processes emerged as family business owners in the rural setting encountered challenges around a lack of electricity and poor physical infrastructure, inhibiting their experiential learning through use of ICTs and the appropriate transportation of goods. In addition, informed by conceptual frameworks (Grossman 1990; Mukeredzi and Manwa 2019) the study also discovered that family business owners acquired practical knowledge about the use of sophisticated technology, entrepreneurial skills and soft skills. While urban based family business owners were transparent regarding their employees’ salaries, their counterparts in the rural setting did not pay their employees regular salaries. Drawing on Bandura’s (1977) social learning theory, this study also discovered that family business owners enjoyed support from family members in terms of teamwork and social support Collaboration was common in family-owned businesses in the rural setting, where close family ties seemed intact. However, emotional and informational support was received from other family members across all the three research contexts. Notwithstanding the experiential learning and kinds of knowledge attained, including support from other family members, the experiential learning of the family business owners had no significant influence on the long-term business sustainability when ownership and control shifted from one generation to another. Business sustainability was enhanced within a given generation. It also emerged that family business owners operated without succession planning, a critical aspect for business sustainability across generations. From this study, I argue that experiential learning of family business owners should be complemented with succession planning to enhance business sustainability across generations. The study suggests that family business owners should open up, discuss and develop succession plans that will enhance transition from one generation to the next. The study also suggests that family business owners should develop and implement remuneration policies that govern the salaries of the nuclear family members who work in the family businesses. With government support, family business owners in rural settings should consider the installation of solar systems to enhance the use of ICT.