RESEARCH PROCEDURE

In order to achieve the research objectives of this study, a qualitative single case study methodology was chosen. The paradigm adopted for this study was phenomenological as opposed to positivistic in order to identify and understand the aspects and components of family business governance and their perceived impact on family business survival from a contextual perspective.

From the aspects and components of family governance identified in the literature, a set of interview questions were drawn up for personal interviews with family business owner-managers. These questions served as a guide for interview discussions to contextually investigate the dynamics of the family business components impacting family business governance as well as the perceived impact on business performance and sustainability.

4.3.1 Primary-research procedure

The questionnaire was emailed to respondents prior to conducting interviews to ensure that they complied with the definition of a small and medium-sized family business and met the criteria for this study.

Interviews were conducted with family members that are owner-managers. Data collected from interviews, observations and reports were analysed using triangulation and pattern matching to ensure validity and reliability.

4.3.2 Sample

The sampling method chosen for this study was subjective. The sample was a non- probability sample; selected using convenience and judgemental methods due to time constraints; and as in the case of a phenomenological case study, the focus of the research was to obtain in-depth contextual qualitative data regarding the identified

variables under investigation in order to develop a theoretical family business governance model.

The unit of analysis for the study was a small to medium family owned business. For the purpose of the study, the family business had to meet the following criteria:

A single family owns a majority equity stake in the business and has controlling influence over strategic and operational decisions, the business is owner managed and at least two family members are actively involved in senior management of the business. Leadership is expected to be passed on to succeeding generations and succession must have already taken place in the business’s history i.e. it must at least be in its second generation of ownership.

The family business chosen for the study is a third generation family owned butchery. Knowledge about the business and operational tasks has been passed on from generation to generation. The business initially started as a butchery retailing meat and has integrated backwards in the supply chain into wholesale and abattoir services. The business is currently managed by a father and his two sons who are all involved in senior management positions and will be the primary interview respondents.

4.3.3 Instrument

A single case study methodology was adopted for the study. An exploratory approach was adopted to identify the variables, and their dynamics and relationships, influencing small and medium-sized family-business governance.

Interview questions and statement items (Appendix A) were used to guide interviews and introduce relevant topics for discussion and exploration. Questions were open ended and the scale of measurement is therefore the respondent’s answer.

A 42 item questionnaire based on the literature review of family business and family business governance was used to guide interviews. The interview questions and statement items presented to owner managers were grouped into five sections. Section A focused on the business, its background and history, operations, performance, structure, ownership, management and leadership. Section B focused on the macro environment – the influences of the political economy and industry challenges and life cycle. Section C focused on the family background and history, structure, relationships, wealth management and governance. Section D focused on family business governance, exploring issues such as vision communication, strategic planning, succession planning, conflict, policies and procedures. Section E solicits general advice regarding family business governance and lessons learned from experience.

4.3.4 Data collection

Recorded interviews were conducted with members of the family that are owner- managers in the business. Business operations were observed. Observations and interviews were diarised and notes taken. Follow up interviews with the owner managers were conducted to clarify issues after transcribing interviews.

4.3.5 Data analysis

Data triangulation and the triangulation of theories were used in the study to increase validity and overcome bias. Data was collected from different sources in data triangulation for validity and where necessary and applicable, theories from other functional business disciplines were used to elaborate on the nature and dynamics of family business governance factors, as well as to assist in the provision of solutions to problems uncovered by the research.

The basic process of analysis and interpretation was the comprehension of family business governance from empirical research as well as literary reviews, the synthesising of information gathered to provide explanations of occurrences and the

dynamics of family business governance, the theorisation of relationships to present alternative explanations and hypothesise causal links and patterns, and the re- contextualisation of developed theory where possible.

Multiple sources of evidence were used, the chain of evidence was maintained from the original research questions to conclusions drawn, and key informants (interviewees) were requested to review the reported research findings to ensure construct validity. These multiple sources included owner manager interviews, observations, and company documentation and reports.

Internal validity was ensured by analysing interview responses for replication using pattern matching logic. Explanation building was used to develop ideas for further study.

External validity was achieved through the use of existing theory in the research, to which empirical findings were compared. This resulted in analytical generalisability whereby research results are generalisable to theoretical propositions and not populations.

Reliability was achieved by following the documented research procedure and with the development of a case study database so that the same conclusions can be deduced in the repetition of the research of the same case study.

4.4 CONCLUSION

Good social science is problem driven and not methodology driven, and the methodology that provides the best answer to research questions or dilemmas should be employed (Flyvbjerg, 2006).

Chapter four reviewed the case-study research methodology, its importance to the accumulation of knowledge, some criticisms and misunderstandings regarding the

methodology’s validity, reliability and applicability. Data collection methods were also noted. The chapter then detailed the methodology and research procedure adopted for this study. The next chapter documents the empirical findings.

CHAPTER 5