The Influence of cultural factors on intergenerational transfer of leadership in family-owned manufacturing businesses in Nairobi, Kenya
Date
2025
Authors
Mukasa, A. A.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Cultural embeddedness in family-owned enterprises has so far been speculated to be a challenge in the transfer of leadership from one generation to another. A significant number of these businesses barely survive beyond first-generation owners primarily because of cultural factors and their perceived influence on succession. The proposed research sought to contribute to the phenomenon by examining the interaction between culture and intergenerational transfer of leadership. The main objective of this proposed research was to determine how cultural factors influence the transfer of leadership across generations in family-owned manufacturing businesses in Nairobi, Kenya. The study examined three of Hofstede’s dimensions of culture, i.e., power distance, uncertainty avoidance, and individualism-collectivism as the independent variables. The research was anchored on Hofstede’s cultural dimensions theory. A cross-sectional descriptive research design was used. The study targeted the owners of 120 local family-owned manufacturing companies in Kenya. The research was based on primary data and deploying a survey questionnaire for quantitative data collection from 120 respondents. Descriptive and inferential statistical analysis was done. The study established that cultural factors had a positive relationship with intergenerational transfer of leadership in family-owned manufacturing firms in Nairobi, Kenya. Specifically, the research concluded that power distance and uncertainty avoidance will positively and significantly improve the intergenerational transfer of leadership in family-owned manufacturing firms. Individual collectivism did not have a significant effect on intergenerational transfer of leadership. The study recommends that leaders in this organization cultivate a more paternalistic/directive role where rules, directions and decisions are made based on the well-being of the group rather than the individual. The study also calls on the leaders to involve subordinates in the succession process to ensure there is understanding and continuity in the plans for the long-term. By leveraging a culture of trust and collaboration, leaders in such high uncertainty avoidance cultures can guarantee smooth transition while addressing potential pitfalls such as resistance to change. Further, organizations with low individualism/collectivism should prioritize universal leadership principles that place emphasis on competence and merit and develop flexible succession planning structures.
Key words: Intergenerational Leadership Transfer, Cultural Dimensions, Family-Owned Enterprises, Hofstede’s Theory, Succession Planning.
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Full - text thesis
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Citation
Mukasa, A. A. (2025). The Influence of cultural factors on intergenerational transfer of leadership in family-owned manufacturing businesses in Nairobi, Kenya [Strathmore University]. http://hdl.handle.net/11071/15763