Article Number: PRJA00407269


Vol. 1 Issue 1, pp: (1-11), March 2017.
Article Number: PRJA00407269
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Review

Family Owned Business (FOB) Succession and Sustainability: Evaluation of some Selected Theories Applicable to FOB Succession Research in Nigeria.

S. Oludare ADEDAYO, Ph.D  and  J. Olanipekun OJO, Ph.D

1Department of Business & Marketing, Babcock University, Ilishan Remo, Ogun State, Nigeria

2Department of Marketing, McPherson University, Seriki Sotayo, Ogun state, Nigeria.

Corresponding Author: J. Olanipekun Ojo, PhD. E-mail: lanipekunojo@gmail.com

 Received: September 13, 2016  Accepted: October 12, 2016  Published: April 19, 2017

ABSTRACT

Family businesses constitute a large number of commercial activities worldwide, contributing significantly to the global economy. In Nigeria, history abounds of many big family businesses that disappeared with the death of their proprietors. At the exit of the founder, problem arises which may eventually lead to the break-up of the family business.

Various theories have been postulated that may help to stem the tide of FOB going under at the death of the owner/founders. This paper reviews the various theories and came up with a model that recognises a push and pull factor that influences the founder’s exit planning. It also recognises the interplay of polygamous family life of Nigerian business owners, sibling rivalry, nepotism and property and entitlement settlement.

Key words: Family Business, Succession and Sustainability