FACTORS AFFECTING THE SUSTAINABILITY OF FAMILY BUSINESSES IN SOCCSKSARGEN, PHILIPPINES

Abstract

Family business is one the driving forces behind the continuous economic success of the SOCCSKSARGEN region.  The purpose of this study is to determine the factors that affect the sustainability of the family business, and to determine what moderates the sustainability of the family business in the five cities of SOCCSKSARGEN, a region in Southern Philippines.  The sustainable family business model and Elkington’s Triple Bottom Line Model served as a strong foundation in formulating the framework that incorporates social, environmental, and financial aspect used to peruse the sustainability of family business. This study used descriptive and multivariate statistical techniques.  It empirically explored the family businesses in the region across all industries in terms of the profile of the family business and its managing owner.  The study unraveled the perception of the family business owners on the sustainability of their family business. The multiple regression analysis was utilized in the data analysis.  The data culled through a survey questionnaire from respondents limited only to the sole proprietorship family businesses operating for at least 10 years as listed in the Office of Permit and Licensing Department or Business Bureau.  The findings of the study revealed that innovation, financial management, organizational culture and values, and competitive advantage significantly influence sustainability of the family businesses in SOCCSKSARGEN region.  The result of this study sheds new light on to the business industry, specifically to the family business owners and its successors as a good reference for sustaining their family business over the next generations.