Centralization of Decision-Making Influences and Customer Service of Family-Owned Businesses in the South-East, Nigeria

Abstract

This study examined centralization of decision-making influences and customer services of family-owned businesses in South-East, Nigeria. Descriptive survey method based on primary and secondary sources of data collection was adopted. Data was obtained from primary and secondary sources. Primary data was gathered through questionnaire while the secondary data was gathered from a review of several research publications, annual reports, articles, textbooks, unpublished thesis, journals and internet sources related family businesses. The study population consisted of 43,868 family-owned businesses. The sample size is 554 determined using Cochran (1963) statistical formula. Analyses were carried out using simple descriptive statistics organized and presented in tables, frequency and simple percentages. At the inferential level of statistical analyses, the hypothesis was subjected to double-test using Pearson Product Moment Correlation Coefficient and Simple Linear Regression. To establish whether an outcome is statistically significant, the researcher set up a 5% significance level while a 95% confidence level was applied and tested at 5% (p-value ≤ 0.05) alpha level. All analyses were carried out in SPSS 20.0. The study found that centralization of decision-making has a mean score of 3.154 with a standard deviation of 1.0825 while customer service has a mean score of 2.765 and a standard deviation of 1.5092. The regression sum of squares is 932.002 greater than the residual sum of squares 279.683 as well as the coefficient of 0.877 and t = -11.256. This indicates a negative relationship. Hence, the study concludes based on the results above that centralization of decision-making negatively and significantly affects customer service in family-owned businesses in the South-East, Nigeria. The study recommends a decentralized customer service which would be proactive with customers’ needs.