The Triple Helix of Family, Governance and Innovation: A Study on Financial Performance in Nigerian Family Businesses
Abstract
This study examined the influence of corporate governance on the financial performance of Nigerian family-owned businesses, with entrepreneurial innovation serving as a mediating variable. Specifically, the study investigated the effects of board composition, ownership structure, and CEO duality on financial performance among family businesses operating in Kogi State, Benue State, and the Federal Capital Territory (FCT), Abuja. The study adopted an explanatory survey research design. The target population comprised 15,842 registered family-owned businesses identified through records from the Corporate Affairs Commission (CAC), chambers of commerce, and business associations within the study area. Using Yamane’s (1967) finite population formula, a sample size of 429 respondents was determined. A total of 380 questionnaires were administered, out of which 302 valid responses representing a 79.34% effective response rate were utilized for analysis. Data were collected through a structured questionnaire measured on a five-point Likert scale. Descriptive statistics, Pearson Product Moment Correlation, multiple regression analysis, and mediation analysis using Hayes PROCESS Macro Model 4 were employed for data analysis at a 5% significance level. The findings revealed that board composition and ownership structure exerted significant positive effects on financial performance, whereas CEO duality had a significant negative effect. The study further established that entrepreneurial innovation significantly and partially mediated the relationship between corporate governance and financial performance. The study concluded that effective governance structures and innovation capability jointly enhanced the sustainability, competitiveness, and profitability of Nigerian family businesses. It recommended improved board professionalism, separation of CEO and board chair roles, ownership diversification, and increased investment in innovation-driven strategies to strengthen the long-term performance of family-owned enterprises in Nigeria.