Whitman School of Management at Syracuse University
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Abstract Details

FOUNDER CENTRALITY, MANAGEMENT TEAM CONGRUENCE AND PERFORMANCE IN FAMILY FIRMS: A KENYAN CONTEXT
Vol. Volume 13, Number 4 December/2008

LOUISE KELLY

PETER M. LEWA

KINYUA KAMARIA


Applying social network theory to family business, founder centrality has been generally shown to positively affect top-management-team congruence and, as a consequence, firm performance. This study applies social network and strategic leadership theory to an examination of founder centrality in family businesses. It focuses on family businesses in Kenya, and examines the impact of the founder’s influence on management team congruence in the three strategic areas of culture, vision, and goals. The discussion considers the research findings in Kenya of a negative influence of founder centrality on management team congruence and firm performance. The study concludes with a presentation of some possible reasons for this dynamic in developing countries like Kenya, where family business is prevalent, and in which the founder plays a central role.



Keywords: family business; founder centrality; management team; strategic planning; strategic decision making; social networks; strategic leadership theory; congruence; performance.