European Journals of Business Management

INFLUENCE OF HUMAN RESOURCE PRACTICES ON SUSTAINABILITY OF FAMILY BUSINESSES IN KENYA

 

Dr. Karanja Patrick Ngugi

Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya

 

Esther Boyani Ogoro

Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya

 

CITATION:Ngugi, P. K., & Ogoro, B. E. (2018). Influence of human resource practices on Sustainability of Family Owned businesses in Kenya. European Journal of Business Management. Vol. 7 (9) pp 1 – 14.

 

ABSTRACT

The study aimed at finding out the relationship between Human resource management practices and sustainability of the family owned small business enterprises in Kenya. Family owned enterprises play a key role in economic development through employment creation and availing of products and services to the end users. The firms have significantly transformed the face of corporate sector with massive expansion across the country and in East Africa. However, despite the merit that surrounds the family owned businesses, their performance has been at the threat of decline with many of them ending up closing their doors as a result of increased mismanagement as well as succession chaos. Through well-tailored employee management practices and ensuring that the human capital is well taken care of, competitiveness of a firm is enhanced. However, there has been little research on the relationship between human resource management practices and sustainability of family owned businesses hence the subject of the study. The study adopted descriptive research design which involves both qualitative and quantitative research methodologies. The study targeted family owned small business enterprises in Nairobi County which are approximately 16285. Nairobi was chosen since over 90% of the FBEs are located in the area and therefore can act as a representative of Kenya. Stratified random sampling was applied to come up with a study sample of 377 respondents who were obtained from the FBEs in Nairobi County and grouped in manufacturing, trading and service sectors. Questionnaires were used to collect data from the respondents. The data was afterwards be analyzed using SPSS software and presented in form of tables, figures and graphs. The study established that recruitment and selection, employee rewarding, training and engagement were significantly and positively related to sustainability of family businesses thus the conclusion that human resource practices influenced sustainability of family owned businesses in Kenya.

 

Key Words: Recruitment and selection, reward systems, training and development, employee                  engagement, Family owned enterprises and Firm sustainability

 

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