Entrepreneurial intentions and family business generational transfers: The mediating role of re-organization among small and medium enterprises

Abstract

PurposeThe study empirically explores the influence of re-organization on entrepreneurial intentions and family business generational transfers among small and medium enterprises (SMEs).Design/methodology/approachUsing multi-group analysis and partial least square structural equation models, data from 252 family-owned businesses were analyzed.FindingsThe results reveal that re-organization partially mediates the relationship between entrepreneurial intentions and family business generational transfers among SMEs.Research limitations/implicationsThe study used a cross-sectional survey approach and focused on Kampala business district. If required and funding permits, a longitudinal study in this field may be conducted.Practical implicationsFamily business owners ought to involve their family members in the management of the business from an early age, including them in the decision-making process, and use social exchange to strike a balance between their personal goals and the objectives of the business. In order to protect the business's goals, the business founder should mentor the next generation through quality family social interactions.Originality/valueIntegrating entrepreneurial intentions and re-organization is likely to improve the survival rate of family business generational transfers among SMEs in Uganda using social exchange theory.