Original Research

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

Angela P. Pike-Bowles, Juliet Townes, Willie Chinyamurindi
The Southern African Journal of Entrepreneurship and Small Business Management | Vol 16, No 1 | a767 | DOI: https://doi.org/10.4102/sajesbm.v16i1.767 | © 2024 Angela P. Pike-Bowles, Juliet Townes, Willie Chinyamurindi | This work is licensed under CC Attribution 4.0
Submitted: 30 May 2023 | Published: 09 February 2024

About the author(s)

Angela P. Pike-Bowles, Department of Business Management, Faculty of Management and Commerce, University of Fort Hare, East London, South Africa
Juliet Townes, Department of Business Management, Faculty of Management and Commerce, University of Fort Hare, East London, South Africa
Willie Chinyamurindi, Department of Business Management, Faculty of Management and Commerce, University of Fort Hare, East London, South Africa

Abstract

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.


Keywords

family business; mediation; strategic flexibility; dynamic capabilities; performance; South Africa; scenario planning; competitive advantage

JEL Codes

L26: Entrepreneurship; M19: Other

Sustainable Development Goal

Goal 9: Industry, innovation and infrastructure

Metrics

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