Post-transition Issues and Performance of Family Businesses in Cape Coast and Elmina: the Moderating Role of Employee Satisfaction

Abstract

This study sought to determine whether post-transition issues such as leader-subordinate-relationship; family values; control and planning activities affect performance of family businesses and also determine whether employee satisfaction moderate the relationship between post-transition issues and family business performance. The research also examined whether family business successors exhibit transformational leadership style in their quest to ensure effective grooming of successors to take over operations. A purposive sampling technique was adopted to select respondents from family-owned hotels/guest houses and its auxiliary service providers such as family-owned restaurants/eateries and family-owned wholesale/retail shops in Cape Coast and Elmina. A total of 158 responded questionnaires were used for the analysis. The study adopted correlation and regression in its data analysis. The study discovered that family business owners exhibit transformational leadership styles. Also, Post-transition issues statistically affect business performance and independent business performance indicators. However, employee satisfaction negatively moderated the relationship between planning and control activities, and post-transition performance of family businesses. It was recommended that employee satisfaction should not be to the detriment of planning and control activities since that could negatively affect family business performance. In addition, family business owners should adhere to family values since it is the main indicator that affect family goals/satisfaction.