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ABSTRACT
Although family businesses contribute largely to the world output, little is known in literature about their mode of operations in the family hotels. The study aims to address the knowledge deficit on this critical component of the economy by investigating the experiences of family hotels in Ghana to gain a better understanding of the factors that facilitate the competitive positioning of family businesses. This paper investigates the moderating influence of strategic leadership on business strategies and performance of family hotel businesses in Ghana. The findings indicate that cost leadership, differentiation and strategic leadership enhance the performance of family hotel businesses in Ghana. It further showed that strategic leadership moderate the influence of both cost leadership and differentiation strategies on the performance of family hotel businesses
Keywords: Business Strategy; Competitive Advantage; Strategic Leadership; Family Businesses; Ghana
INTRODUCTION
In developing and emerging economies such as Ghana's, family businesses are widely considered important economic growth engines. Family businesses play a significant role in employment creation, community development, and other aspects of economic growth and development (Acquaah, 2011). However, the survival of family businesses in Africa greatly depends on their ability to create and sustain a competitive advantage, which depends in turn on their capacity to acquire and control financial, human, and other resources and capabilities. Family businesses in emerging economies such as Ghana face rapid environmental and institutional changes. A high level of market imperfection and weaknesses are inherent in the market-supporting institutions and contract-enforcing mechanisms, presenting serious challenges to family businesses' ability to obtain resources through arms-length transactions (Acquaah, 2011). Therefore, thriving in this volatile and competitive business environment requires a sustained competitive advantage via coherent business and competitive strategies. The literature indicates that family businesses gain a competitive advantage through their ability to develop and obtain organizational resources and capabilities, assume a strategic market position, and implement competitive strategies taking cognizance of the opportunities and threats in the external environment (see Acquaah, 201 1).
Hitt et al. (2005) also argue the importance of strategic leadership in the attainment of business objectives through effective portfolio management and environmental scanning. This study examines family businesses in Ghana to explore the moderating effect of strategic leadership on the relationship between business strategy and performance. This study contributes...