A Critical Investigation of Factors Influencing Ugandan Family-Owned Manufacturing Businesses’ Performance

Abstract

Objective: This study investigated the role of resources, capabilities, entrepreneurial orientation, and stewardship on the performance of family-owned manufacturing businesses in Uganda to establish how a firm can identify the rare and valuable resources that simultaneously enable better performance levels and competitive advantage. Research Design & Methods: A qualitative study with 15 participants from six family manufacturing businesses using interviews. The transcribed data was analysed and grouped into themes. Findings: General management skills, financial management, marketing management, and technology benefits are key resources and capabilities that enhance the smooth operations of the family manufacturing businesses and play are pivotal in achieving better performance and sustainability. Secondly, it was found that proactiveness, risk management, and continuous evaluation and appraisals of their performance were practised among family-owned manufacturing businesses. Thirdly, decision-making systems and lines of authority, enabling them to constantly analyse market trends and know about competitors were in place. Lastly, although there are supporting programmes for the manufacturing industries to help family-owned manufacturing businesses acquire start-up resources and import raw materials, there still needs to be more consistency in implementing such support programmes in Uganda. Implications & Recommendations: Family business owners should embrace proactivity, risk management, and continuous evaluation and appraisals of business performance. Furthermore, a review of current government policies, particularly those about industry financing and labour management, is recommended. Contribution & Value Added: The study was the first attempt to examine the performance of family-owned manufacturing businesses in Uganda. An improved framework was developed for their entrepreneurial success.