Business Longevity of Indigenous Transport Firms in Lagos State, Nigeria: The Role of Key Strategic Factors

Abstract

Purpose: The study aims to investigate the impact of strategic factors on the business longevity of indigenous family-owned transport firms in Lagos State, Nigeria. It explores key variables such as innovative capabilities, resource allocation, succession planning, digitalization, and family business values to understand their influence on the long-term sustainability of these firms. Materials and Methods: The research employs a quantitative research design, collecting data through structured surveys. Regression models were used to analyze the effect of the strategic factors (innovative capabilities, succession planning, family business values, etc.) on business longevity. The study is based on a sample of respondents from family-owned transport firms in Lagos State. Findings: The study found that Innovative capabilities (β = 1.153, t = 6.370, p < 0.05), succession planning (β = 1.108, t = 1.952, p < 0.05), and family business values (β = 0.915, t = 3.176, p < 0.05) significantly affected business longevity. The model explaining these relationships yielded an adjusted R² value of 0.564 and an F-value of 109.038 (p < 0.05), indicating a strong effect of the strategic factors on business longevity. The research also applies Dynamic Capabilities Theory to explain how family-owned transport firms can achieve sustained competitive advantage. Implications to Theory, Practice and Policy: Family-owned transport firms are encouraged to enhance their strategic management practices, particularly in the areas of innovation, succession planning, and fostering family business values. Future research should aim to explore broader contexts and consider additional variables beyond those examined in this study, considering the limitations of the current study, such as geographic constraints and cross-sectional data reliance.