An Investigation of Factors Towards Family Business Sustainability: Perspective from India, a Developing Economy

Abstract

Family business dominates the Indian corporate landscape, reflecting the country’s strong familial culture. While sustainability in family business is a growing research area, its understanding in the Indian context remains limited. This study aims to investigate the factors contributing to family business sustainability in India and examines the relationships among these factors. Employing a qualitative approach, this research analyzes multiple case studies from Gujarat and Rajasthan. Data was collected through in-depth interviews with family business owners and successors and analyzed using content analysis. The findings reveal five key factors contributing to family business sustainability: succession planning, strategic diversification and expansion, innovation and adaptability, mentorship and knowledge transfer, and competitive advantage. A conceptual framework illustrates the interconnectedness of these factors, highlighting how succession planning supports knowledge transfer and fosters innovation, while strategic diversification often requires innovative approaches. This research offers valuable insights for family business owners navigating growth and sustainability challenges. It also provides a foundation for policymakers to develop targeted measures supporting family business, which significantly contribute to India’s economy. The study’s originality lies in its focus on the Indian context, offering a nuanced understanding of family business sustainability in a rapidly evolving emerging economy. By exploring the unique characteristics of Indian family businesses, this research contributes to the literature on family business sustainability in diverse cultural contexts.