Generational Involvement and Business Performance: A Study of Family-Owned Businesses in Mumbai City

Abstract

Abstract: Family-owned enterprises make an important contribution to economic activity by creating employment, encouraging entrepreneurship, and maintaining businesses over generations. Nevertheless, the entry of a new generation often introduces changes in leadership, business priorities, decision-making, and managerial practices, which may influence organizational performance. This study investigates whether business performance varies according to the generation involved in managing family-owned enterprises in Mumbai City. The research follows a descriptive and analytical design. Primary information was obtained from 79 owners, partners, directors, and other key decision-makers through a structured questionnaire. Respondents were selected using convenience sampling and grouped according to their involvement in first-, second-, or third-generation family businesses. Descriptive statistical measures were used to summarize the data, while One-Way Analysis of Variance (ANOVA) was applied to examine differences in performance among the three generational groups. The study provides a clearer understanding of how generational involvement relates to business performance. It also emphasizes the importance of effective succession planning, professional management, and adaptability for maintaining the growth, continuity, and competitiveness of family-owned enterprises.