GOVERNANCE AND THE SUSTAINABILITY OF FAMILY-OWNED SUPERMARKETS: EVIDENCE FROM KIAMBU COUNTY, KENYA
Abstract
Purpose of the study: The study examined the effect of governance on the sustainability of family-owned supermarkets in Kiambu County, Kenya.
Statement of the problem: Although governance is widely regarded as central to the continuity of family enterprises, evidence on its relative contribution to sustainability in Kenya's family-owned supermarket subsector remains limited. This gap constrains evidence-based governance decisions by owners and managers.
Research methodology: The study adopted a pragmatist philosophy and a mixed-methods, cross-sectional design. Structured questionnaires targeted 183 owners, managers, and supervisors from 70 registered family-owned supermarkets, complemented by key informant interviews. Data were analysed using Partial Least Squares Structural Equation Modelling in STATA after reliability, validity, and diagnostic testing.
Findings: Governance demonstrated strong reliability and validity and had a positive, statistically significant effect on sustainability (standardised beta = 0.652, t = 11.919, p < .001), explaining approximately 42.9% of the variance in sustainability. Formal transition planning and accountability were the most established governance practices, whereas board independence from family influence was the least established. Qualitative evidence supported the quantitative findings.
Conclusion: The study concludes that governance is a major strategic driver of sustainability among family-owned supermarkets in Kiambu County. Stronger governance structures can support continuity, accountability, and informed strategic decision-making.
Recommendations: The study recommends that family-owned supermarkets should formalise governance through independent advisory representation, family constitutions or governance charters, and transparent accountability systems. Owners should also strengthen board independence while maintaining clear transition-planning mechanisms.
Keywords: Governance, sustainability, family-owned supermarkets, stewardship theory, resource-based view, Kenya
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