EFFECT OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE OF FAMILY-OWNED BUSINESSES IN IMENTI NORTH SUB COUNTY

Halakh Dabasso Wato, Dr. Robert Obuba

Abstract


Family-owned businesses are equal and crucial players in any country's economic growth, they are equal players in employment creation, generation of income and wealth accumulation. Nevertheless, this sector is faced with bundles of challenges not limited to leadership issues, poor employee performance, low-profit margins and market competition. This study sought to examine the effect of organizational culture on the performance of family-owned businesses in Imenti North Sub County. The research was informed by resource-based theory. With a target population of 1956 business owners, the study employed a descriptive research design and a stratified random sampling to a unit of analysis who were the owners of the business. The study adopted the Nassuma formula for the determination of a sample size of 320 respondents. A questionnaire was the main data collection tool which were administered by the researcher. Collected data was analyzed by use of SPSS and the results displayed in tables and figures, regression model was carried out to establish the relationship between the variables which helped in conclusions and recommendations. The organizational culture had a statistically significant positive correlation with business performance. The study recommended that organizational culture should be emphasized on in order to lead to improved business performance of the family businesses.

Keywords: Organizational Culture, Resource-Based Theory, Employee Performance


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