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Managerial Capabilities, Marketing Capabilities, Business Strategy, and Firm Performance in Family and Non-Family Businesses in a sub-Saharan African Economy

Track: Entrepreneurship

Keywords: managerial capabilities; marketing capabilities; firm performance; micro and small family businesses; business strategy; sub-Saharan Africa

This study examines how the impact of the interactions between organizational capabilities (managerial and marketing) and business strategy on performance differs between micro and small family and non-family businesses. We use data from 207 family business and 293 non-family businesses from Ghana, and a hierarchical linear regression analysis to tests our hypotheses. The findings indicate that while family businesses benefit more by leveraging managerial capabilities in pursuing the cost leadership strategy, non-family businesses benefit more by leveraging marketing capabilities in implementing the differentiation strategy. Implications are presented.

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