Question $6$

$(20$ Marks$)$

Study the information described below and answer the following questions.

Socio$-$economic wealth of South African Family Businesses

Over the past few decades, family businesses have garnered significant scholarly attention due to their prevalence and complexity. In South Africa, these enterprises form the backbone of the economy, contributing significantly to job creation and economic growth $($Van Eeden$-$Allen & Verhoef, $2018).$

A central tenet in family business research is the unique interplay between the family and the business, which scholars agree significantly influences firm behavior $($Yu$,$ Lumpkin, Sorenson, & Brigham, $2012).$ Consequently, exploring how family involvement impacts family businesses has emerged as a vital area of inquiry.

There is broad consensus among family business scholars that socio$-$economic wealth $($SEW$)$ serves as a key driver of family firm behavior and is essential for understanding the dynamics of the family business system $($Sharma et al$.,2012).$ The SEW concept posits that family firms are primarily motivated by the preservation of socio$-$economic wealth in their strategic decision$-$making. SEW encompasses the affectrelated values $($i$.$e$.,$ affective endowments$)$ that an owning family derives from its business, shaped by their controlling position $($Berrone$,$ Cruz, & Gomez$-$Mejia, $2012).$ This theoretical framework has effectively explained differences in strategic choices between family and non$-$family firms; however, there is a notable gap in research that directly explores the nuances of socio$-$economic wealth $($SEW$)$ and its influence on the strategic decisions made by family firms.

Mr$.$ Rabana Motsoaledi is embarking on an exploration of eight prominent family$-$owned enterprises in South Africa, focusing specifically on the evolution of their SEW and its effects on strategic choices. This study aims to uncover how SEW influences the resilience and adaptability of these businesses.

$9$

Through comprehensive narratives, Mr$.$ Motsoaledi seeks to illustrate the complexities of managing family businesses in South Africa across generations. By documenting the life histories of these eight family firms, the study will provide valuable insights into their unique challenges and opportunities. The findings will offer guidance for current and future family business leaders, entrepreneurs, and researchers at the intersection of family, culture, and business in the South African context. Ultimately, this research aspires to inspire resilience and innovation among family enterprises navigating an ever$-$changing economic landscape.

Objectives of the Study

To understand how cultural heritage and family legacies shape business philosophies and practices.

To explore the influence of socio$-$economic wealth on strategic choices, leadership transitions, and succession planning.

To examine how family businesses maintain their socio$-$economic wealth amid growth.

To provide recommendations for leveraging socio$-$economic wealth considerations to enhance firm resilience and profitability.

REQUIRED:

$6\mathrm{.}1.$ Based on your understanding of research design, identify the research design underpinning Mr$.$ Motsoaledi's study and evaluate its appropriateness. Support your evaluation with relevant information from the study details provided.

$(10$ marks$)$

$6\mathrm{.}2.$ Based on the research design selected for Mr$.$ Motsoaledi's study, critically discuss the data collection methods he should employ to gather data.

$(5$ marks$)$

$6\mathrm{.}3.$ Critically discuss how narrative analysis can be employed as the method of data analysis in Mr$.$ Motsoaledi's study.

$(5$ marks$)$