Exploring value systems and community engagement in indigenous black South African family businesses: a sociocultural perspective

Not only do family businesses (FBs) pursue economic goals that enhance their economic wealth, but they also pursue non-economic goals that enhance their socioemotional wealth (Boers et al., 2025; Randolph et al., 2022, 2018; Zellweger et al., 2013). One such non-economic goal receiving increased attention from FBs is that of behaving in a socially responsible manner (Mariani et al., 2023; López-González et al., 2019). FBs may have a unique perspective on socially responsible behaviour due to the family involvement in the business and their close ties to their communities (Zellweger et al., 2013). These ties make their social responsibility activities at a community level an interesting avenue for research. Corporate social responsibility (CSR) is defined as the sense of responsibility that businesses have for their stakeholders, whereas community-level social responsibility focuses on this sense of responsibility at the community level (Jorgensen et al., 2020).

Attempts have been made by FB scholars to research CSR issues among FBs. For example, in their study on differences in policy toward CSR, Abeysekera and Fernando (2020) showed that FBs are more responsible to shareholders than non-FBs in making environmental investments without examining the nature of environmental responsibilities exhibited by these businesses. Similarly, Marques et al. (2014) found that in FBs with family chief executive officers (CEOs), but more frequently in FBs with high family ownership, the values of identification and commitment are particularly evident and have a strong impact on workplace and community-related CSR. While these studies are crucial to understanding social responsibility activities among FBs, they fail to expand on how values shape the interaction of social responsibility activities of FBs, especially among small and medium-sized FBs. While several researchers have addressed community-level social responsibility (e.g. Hsueh et al., 2023; Randolph et al., 2022; Abeysekera and Fernando, 2020), little is known about the nature and importance of community-level social responsibility and its relationship to small and medium-sized FBs (Martín Castejón and Aroca López, 2016). Some scholars (e.g. Martín Castejón and Aroca López, 2016) argue that the interactions between small- or medium-sized FBs and the community are noticeably less formal and often found in rural contexts. The intertwined nature of rural society often results in community identities and economies hinging on prominent business-owning families, fostering interdependence among the family, business and community outcomes (Randolph et al., 2022).

Nonetheless, past research has mainly focused on the adoption of CSR, exploring the relationship between family involvement and CSR, the impact of CSR on FB performance (Stock et al., 2024; Mariani et al., 2023) and business characteristics and contextual factors (e.g. Campopiano and De Massis, 2015). Few studies have examined the influence of values on the social responsibility activities of FBs, especially at a community level (e.g. Sánchez-Medina and Díaz-Pichardo, 2017; Marques et al., 2014). Yet, values often characterise the continuous interaction between family members and between them and external stakeholders (Randerson and Estrada-Robles, 2023; Kupangwa et al., 2023). Owing to the continuous interaction between the business and the community, the owning family and the business adopt and diffuse values between them and the community (Sánchez-Medina and Díaz-Pichardo, 2017). Values are embedded in all elements of the family business as they shape and influence family and business objectives, as well as strategy (Yuan and Wu, 2018). Research adopting a values perspective focuses on comparative differences between family and non-FBs concerning their CSR practices (e.g. Maung et al., 2020), while disregarding how these values shape the way owning families and their businesses engage with their communities.

Our study utilises indigenous black South African FB cases and reflexive thematic analysis to investigate the influence of a FB’s values on their socially responsible behaviour at the community level. For this study, an indigenous black South African FB refers to a family business independently owned and managed by (an) indigenous black South African(s). Overall, our study addresses the following research questions:

The importance of responding to these questions lies in the knowledge that although aspects of environmental pressures on business results have been widely studied (e.g. Rudyanto and Siregar, 2018; Sánchez-Medina and Díaz-Pichardo, 2017), many of these studies consider the effects of how FBs respond to CSR issues without understanding the influence of values on their response.

By addressing these questions, this study contributes to the literature by providing greater insights into the role of values in community development from an FB perspective. As each country is characterised by its own unique set of regulatory norms and values (Campopiano and De Massis, 2015), we, therefore, find it suitable to provide an indigenous African perspective on the role of values as informal institutions in this regard. As noted from previous FB research, many of the studies on values, CSR and social responsibility have been conducted in European and Western contexts (Battisti et al., 2023; Brunninge et al., 2020; Rau et al., 2019; Simon et al., 2012). However, owing to differences in values systems, structures and relationships across societies and countries (Kaunda and Nkhoma, 2013), several authors (Ruf et al., 2021; Astrachan et al., 2020) note that a need exists to investigate the role of family business values in other contexts, such as the African context. This need is further highlighted by Agyapong and Acquaah (2021) and Matchaba-Hove (2020), as well as Khavul et al. (2009), who call for more studies on indigenous African FBs to be conducted so that the richness, complexity and diversity of entrepreneurial activities in the African context can be better understood.

Drawing on social capital theory, we found that a symbiotic relationship exists between the FB and the community in which it operates. As such, by becoming involved in the community, the FB becomes both a benefactor and a beneficiary (Randolph et al., 2022). Highly involved business owners and community members yield benefits that ensure business and community sustainability over time (Jorgensen et al., 2020). We further advance that it is the values of the FB, as informal institutions, that shape the interaction between the FB and the community it serves. Informal institutions are unwritten traditions, customs, beliefs, norms and socially shared rules created, communicated and enforced outside of officially sanctioned channels within a group or community (Dau et al., 2022).

Our study also makes several contributions to the literature on cultural values, as well as community-level social responsibility activities and engagement. First, we offer insights into the distinctive cultural values, traditions and practices that shape the operational and decision-making aspects of indigenous black South African FBs concerning their community-level engagement and community-level social responsibility practices from an indigenous perspective. These insights have the potential to capture the intricacies, richness and diversity of entrepreneurial endeavours within the African context (Agyapong and Acquaah, 2021), thereby aiding researchers and practitioners in comprehending the cultural and economic variations present in these environments (Acquaah, 2013). Second, through the adoption of social capital theory, our study contributes to a deeper comprehension of the social integration of indigenous African FBs within their local communities. Our research sheds light on how these businesses engage with and contribute to the social fabric and development of the communities in which they are situated. Therefore, our study aligns with the need for FBs to contribute positively to societal welfare, reinforcing their role as pillars of community development (Wang et al., 2024). Third, we formulate a values-based community engagement framework that harmonises with the value systems inherent in indigenous African FBs. Recognising that values serve as informal guidelines influencing the behaviours and decision-making processes of FBs (Dau et al., 2022; Rau et al., 2019), we contend that community-level social responsibility practices are rooted in the ethical and cultural value systems of both the owning families and their businesses (Mariani et al., 2023; Sánchez-Medina and Díaz-Pichardo, 2017).

In the following sections, we review the literature on the South African cultural context, South African FBs, FB values and the community, as well as community-level engagement undertaken by FBs. We then elaborate on our methodological choices by introducing the research context, presenting our sample design and describing how the data were collected and analysed. Following this, we present and discuss our findings. Finally, we present theoretical contributions, practical implications and limitations and suggestions for future research.

South Africa is a nation that has a heterogeneous cultural heritage (Bornman, 2011) because of its diverse racial, ethnic (Adams et al., 2012) and language mix (11 official cultural languages spoken) (McFarlin et al., 1999). Race, however, has become not only the major organising principle, but also the primary unit of social analysis (Bornman, 2011) and is used to describe and explain culture in South Africa (Duncan, 2003). South Africa consists of four major racial groups: the black majority, which consists of several African ethnic groups, and several minority groups. These minority groups include the Indian ethnic group originating from Asia, the Coloured ethnic group, which is a mixed race and the White ethnic group originating mostly from Europe (Johnston, 2015; Lucassen et al., 2014; McFarlin et al., 1999).

With regard to ethnic groups, the concept of indigenous refers “to the notion of a place-based human ethnic culture that has not migrated from its homeland and is not a settler or colonial population” (Stewart, 2018, p. 740). Adams et al. (2012) identify three groups that qualify as indigenous South African groups, namely, the KhoiKhoi, the San and the black Africans. These groups have a direct ancestry that dates back 1,700 years as the earliest inhabitants of South Africa (Bornman, 2011). The KhoiKhoi, who were known as the Hottentots and the San, also known as Bushmen, are collectively known as the Khoisan (Bornman, 2011). The black African clans, who settled in different geographical regions of the country, are the forefathers of the current Tswana-Sotho group and Nguni language group (Bornman, 2011).

The black African cultural value system is rooted in social interdependence, central to the African worldview of Ubuntu (Letseka, 2012). Ubuntu, a collectivist philosophy, defines black South African indigenous culture (Laher, 2013). It originates from the maxim “umuntu ngumuntu ngabantu” (Nguni) or “motho ke motho ka batho” (Sesotho), meaning “a person is a person through others” (Letseka, 2012; Laher, 2013). This reflects the belief that identity and humanity are shaped by community (Metz, 2020).

Ubuntu embodies Afro-communitarianism, emphasising personhood, identity and humanness (Metz and Gaie, 2010). Black South African indigenous values are inherently collectivist (Adams et al., 2012), extending concern beyond immediate family to the broader community (Zoogah, 2013). Ngubane and Gumede (2018) note that collectivism underpins African values, fostering mutual dependence for survival and well-being. Key Ubuntu values include survival, solidarity, compassion, communalism, cooperation, love, togetherness and respect (Ngubane and Gumede, 2018). Other values, such as generosity, hospitality, friendliness and care, promote social cohesion (Makhubu et al., 2018). Letseka (2012) highlights Ubuntu’s role in fostering constitutional principles such as non-sexism, non-discrimination, freedom, human rights and dignity.

In the past, African value structures and systems, such as marriage and family relationships, were used to promote order for socialisation and morality in the indigenous African society (Ojua et al., 2014). Values and preferences are particularly predominant in the African cultural system, with members placing focus on traditions and social obligations towards the African culture (Adams et al., 2012). McFarlin et al. (1999) concur that African values often emphasise the expression of spiritualism and tribal destiny. According to Metz and Gaie (2010), African morality differs from Western moral philosophy in the way positive relationships with others are defined.

African culture has undergone significant changes since the colonial era (Maluleke, 2012). The shift towards modernity, Westernisation and globalisation has profoundly impacted many traditional African cultures (Ojua et al., 2014). According to Nwafor (2016), despite these transformations in African value systems, many individuals continue to emphasise their traditional values and seek to preserve them, albeit in an evolved form. In South Africa, in particular, European and Western values and practices were introduced into indigenous African traditions during the colonial period and further reinforced under the apartheid political system in the 20th century (Adams et al., 2012; Bornman, 2011). In general, European and Western values are libertarian practices of autonomy, which advocate respect for individual choices (Akpa-Inyang and Chima, 2021).

While collectivism around the world may share certain characteristics, African collectivism is uniquely shaped by indigenous value systems rooted in philosophies such as Ubuntu, which emphasise interconnectedness, reciprocity, spiritual responsibility and communal obligations (Metz, 2020; Ngubane and Gumede, 2018; Letseka, 2012). Although collectivist principles are also evident in other non-Western cultures, such as Confucianism in Chinese societies and Familismo or Marianismo in Latin American communities, the African collectivist ethos is more egalitarian, deeply spiritual and grounded in communal moral responsibilities (Ngubane and Gumede, 2018). Clarifying these distinctions is essential for theorising African businesses as a unique institutional form and for illustrating how their value systems translate into distinct community engagement practices. Table 1 elaborates on the differences between African collectivism and other non-Western collectivist cultures. Overall, African collectivism places a stronger emphasis on communal obligation and community social responsibility, whereas non-Western collectivist cultures tend to prioritise loyalty to the family and extended kinship networks.

In today’s economy, FBs occupy a significant position globally (Deng and Ren, 2025), as they foster macroeconomic growth, especially in developing countries (Lukito et al., 2025), such as South Africa. These businesses form a critical component of South Africa’s economy as they account for a large share of job creation and tend to have a long-term vision compared with other business types (Neneh and Welsh, 2025). FBs in South Africa range from small, informal enterprises to large, multi-generational organisations that contribute significantly to economic growth and social cohesion (Rabenowitz et al., 2018). While no database currently exists of FBs in South Africa (Neneh and Welsh, 2025), these businesses account for approximately 50%–70% of all businesses in South Africa (Isaacs and Friedrich, 2011). In South Africa, FBs have been making a positive contribution towards the South African economy for the last 300 years (Urban and Nonkwelo, 2022; Rabenowitz et al., 2018).

The historical development of FBs in South Africa is deeply intertwined with the country’s colonial and apartheid past (Kritzinger and Vorster, 1997). Historically, FBs among White South Africans had access to economic opportunities, financial resources and institutional support, allowing them to establish large and multi-generational enterprises (Gradín, 2019). In contrast, black African, Indian and Coloured entrepreneurs faced systemic barriers, including limited access to capital, restrictive trade regulations and socio-economic marginalisation (Gomba and Kele, 2016; Mpehle, 2011). The post-apartheid era ushered in significant policies aimed at addressing historical inequalities, notably through black Economic Empowerment policies and government support for small, medium and micro enterprises (Mpehle, 2011). While these policies have fostered the growth of black-owned FBs, many still operate in the informal sector due to persistent structural challenges (Masuku and Nzewi, 2021). The rise of entrepreneurship education and funding initiatives has further contributed to the expansion of FBs across different racial and economic groups.

South African FBs have been linked to creating social cohesion due to their connection with the communities they serve. This community connection is enabled by the fact that most FBs engage in social empowerment initiatives, including CSR practices, which have been linked to a broader goal of economic empowerment and stability within South African society (Verhoef, 2014). The focus of FBs on CSR practices can be attributed to the influence that cultural values have towards business decisions and operations (Kupangwa et al., 2023). In the business domain, the distinct cultural attributes of familism (e.g. values) significantly influence strategic decision-making within FBs (Wang et al., 2024). The role of cultural values in shaping business practices is evident, with trust, reciprocity and human interconnectedness being integral to operations (Kupangwa et al., 2025).

Rokeach (1973, p. 5) defines a value as “an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.” In our study, FB values are defined as either explicit or implicit principles of the desirable in family and business life (Koiranen, 2002; Hall et al., 2001). Specific values, such as commitment, long-term orientation, hard work and legacy transmission, have been identified as important values that characterise FBs (Parada et al., 2010). Other values include, amongst others, reliability, sustainability, responsibility, community, respect and reputation (Rau et al., 2019). These values are considered the roots of a FB’s identity, longevity and performance (James et al., 2012; Distelberg and Sorenson, 2009).

In their study on values explaining FB heterogeneity, Rau et al. (2019, p. 202) found that FBs place importance on universal responsibility, “the understanding of one’s responsibility for and protecting the welfare of all people and nature.” Furthermore, by upholding benevolence, FBs understand and appreciate the dignity of human beings and do so because they are embedded in their local communities and want a favourable reputation (Rau et al., 2019). Campopiano et al. (2014) assert that FBs are associated with increased community-level social responsibility engagements aimed at promoting the visibility of the family and the business in the community. FBs tend to accept the challenges facing their communities as their own and stand by them even in times of struggle (Rau et al., 2019). The literature (Marques et al., 2014; Besser, 2012) further highlights that values, such as identification, altruism, collectivism, commitment, perpetuation and obligation, have been associated with FBs and their community-level engagement. FBs hold their values deeply, guiding their behaviours and decisions. These values create predispositions of FBs toward community-level engagement (Fitzgerald et al., 2010).

Social capital has been considered relevant to management studies and has become widely accepted in management research (Kwon and Adler, 2014). The extant literature offers several definitions of social capital (Stasa and Machek, 2022). For example, Nahapiet and Ghoshal (1998, p. 243) define social capital as “the sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by an individual or social unit.” Adler and Kwon (2002, p. 17) define social capital as the “goodwill that is engendered in the social relations of social systems, and that can be mobilised to facilitate collective action.”

The literature also offers several perspectives on social capital (Stasa and Machek, 2022). From a business perspective, social capital is considered an organisational value comprising three interconnected dimensions: structural, cognitive and relational (Nahapiet and Ghoshal, 1998). The structural dimension encompasses social interactions, ties and network configurations (Sanchez-Famoso et al., 2015; Carr et al., 2011; Pearson et al., 2008). Social networks often revolve around network ties, which denote relational links between individuals (Sanchez-Famoso, 2015). Sanchez-Famoso (2015) and Sanchez-Famoso et al. (2015) propose that the cognitive dimension elucidates how group members foster a collective sense of belonging. The relational dimension emphasises the resources generated through personal relationships, such as respect, trust, friendship, norms, obligations and identity (Nahapiet and Ghoshal, 1998). The interplay between the structural and cognitive dimensions facilitates the emergence of the relational dimension (Carr et al., 2011).

Common among these literature perspectives is the set of shared values or resources, based on relationships and networks, that allow individuals to work together in a group, achieving a common goal (Adler and Kwon, 2002). Social capital acts as a glue that binds people together in social relationships (Sanchez-Famoso et al., 2015) and has become the cornerstone of community development (Halstead et al., 2022). Tajpour et al. (2022) argue that when people belong to a community with high social capital, they tend to work together more closely and take more risks, resulting in increased social capital and promoting innovative activities among community members. Therefore, we considered social capital theory as the relevant lens through which we can explore how the values of FBs shape engagement with the communities they serve.

In the context of FBs, the importance of social capital is derived from many complex issues within these businesses, including norms, values, vision and purpose (Pearson et al., 2008). The family (and its values) shape the FB strategy and its social missions while emphasising the importance of community stakeholders (Randolph et al., 2022). Research that considers that a family not only acts as a benefactor but also as a beneficiary of a business’s social mission tends to articulate value creation regarding local community impact (Randolph et al., 2022). In our study, we also consider the family as a beneficiary when the family directs community value creation through the FB. Community-level social responsibility activities may be particularly relevant in informing the FB’s social mission, as community welfare is a common target of their philanthropic activities (Randolph et al., 2022).

Owing to the development of a unique business (Stankiewicz, 2016; Berrone et al., 2012), the FB image is often linked to the family name, and in most cases, the family name is also the name of the FB (Swab et al., 2020; Kalm and Gómez-Mejía, 2016). Because of this unique image and the links to their family name, FBs are often more concerned with community-level social responsibility activities, community citizenship and a positive public image and reputation than non-FBs are (Stankiewicz, 2016; Berrone et al., 2012). FBs often sponsor associations and activities such as charities, special events or local sports teams and strong ties are almost guaranteed between FBs and their communities (Stankiewicz, 2016; Berrone et al., 2012). Overall, the primary purpose of social relationships is to build collective social capital and interpersonal relationships characterised by relational trust and harmony (Stankiewicz, 2016; Schäfer, 2015).

To account for the contextual conditions relevant to the phenomenon under investigation, we employed a qualitative, multiple-case study strategy. As emphasised by De Massis and Kotlar (2014), the depth and richness of a case study approach make it particularly effective for capturing the diverse features and dimensions that contribute to the uniqueness of behaviour and performance. This strategy further allowed us to gather comprehensive data and enhance our understanding of the value sets of indigenous black South African FBs, as well as how these values shape their engagement with the communities they serve.

To bridge gaps in understanding the role of values in community-level engagement among FBs, we adopted an abductive approach, a form of reasoning that differs from conventional deductive and inductive methods (Co et al., 2024). Unlike deductive reasoning, which moves from theory to observations, or inductive reasoning, which builds theory from observations, abductive reasoning facilitates an iterative process between empirical data and theoretical frameworks (Vila-Henninger et al., 2024).

Following Eisenhardt’s (1989) recommendation that the sample should be a small number of extreme and transparent cases that illustrate the phenomenon of interest, we selected seven indigenous black South African FBs (Table 2), using criterion sampling. The four criteria were based on the Successful Transgenerational Entrepreneurship Practices (STEP) project concerning the owning family (Habbershon et al., 2010), namely:

1. they see themselves as an FB;

2. they should be involved in the main operations of the FB with at least 50% voting rights or shares;

3. must have at least one active operating business, not only being a passive shareholder or investor; and

4. should have the ambition to pass on the business to the next-generation family members.

The STEP project criteria for the selection of FBs were chosen because the project is an international collaborative research project that has been in existence for many years. It is considered the leading project in investigating entrepreneurship and longevity within FB contexts (Habbershon et al., 2010) and provides a basis for building and sustaining a FB over the generations (Sharma et al., 2014). Furthermore, the STEP project criteria offer a structured, reliable and relevant approach to selecting FBs as they emphasise significant family influence, long-term sustainability and intergenerational entrepreneurial practices. In addition to the STEP project criteria, we defined a family business as a business that is independently owned and managed by (an) indigenous black South African(s), excluding South Africans from the Coloured and Indian population groups. We excluded the Coloured and Indian populations because of their value and cultural systems being vastly different from the indigenous black African population (du Plessis et al., 2015). Indigenous black South African FBs were chosen because, as more of these businesses are entering the formal economic sector and value chains to capitalise on local and international opportunities (Gutu Sakketa, 2023; Mthiyane et al., 2022), it is important to understand how they engage with the communities they serve.

Using available information from the public domain, such as media and personal contacts, we developed a list of indigenous black South African FBs operating in South Africa. We attempted to identify businesses that were in at least the second generation; however, given the high failure rates associated with indigenous black South African businesses in general (Ssekitoleko and du Plessis, 2021), such businesses are regrettably few. While a list of 50 potential indigenous black South African FBs was developed, most of these businesses were not willing or unable to participate in the study. De Massis and Kotlar (2014) acknowledge that a common challenge in qualitative studies involving FBs, business-owning families and leaders is their unwillingness to participate due to concerns over confidentiality, time constraints and research fatigue. The identification of 50 FBs was done to demonstrate the efforts made in searching for indigenous black South African FBs to participate in our study, aiming to ensure theory elaboration rather than statistical or sample generalisation (Co et al., 2024), as case studies are not designed to achieve generalisability (Rashid et al., 2019).

Although qualitative research does not prescribe a specific sample size (Venter and Van Zyl, 2017), our study applied the concept of information power. According to Malterud et al. (2015), the greater the information power a sample possesses, the fewer participants are required and the reverse also holds. In light of our study’s objective, the specificity of the sample, the application of established social capital theory, the quality of interview dialogue and the analytical approach used, a smaller sample was deemed to possess substantial information power. Consequently, our study utilised a small sample of seven FB cases, as this was considered sufficient to yield meaningful and rich insights. The selected seven cases were considered information-rich cases through which we could respond to the research questions under investigation (Palinkas et al., 2015).

Before collecting data, our study was granted ethical approval by our University’s Research Ethics Committee. Data was sourced from face-to-face interviews and secondary data. The semi-structured interview schedule used covered four sections:

1. the demographic information of informants;

2. FB history;

3. value sets of FBs and their importance; and

4. values and community engagement in FBs.

The interview schedule contained mainly open-ended questions to encourage flexibility and to probe specific questions of interest in the study (Venter and Van Zyl, 2017). The interview schedule included questions such as:

Key informants included members of the most senior generation of the FB, such as the founders, the controlling business owners and CEOs, family members working in the business or inactive members and non-family members who have been active at the top managerial level of the FB (see Table 3). The inclusion of non-family members as informants allowed us to gain an objective outsider’s insights and perspectives on values in the context of FBs. The duration of interviews with key informants ranged between 30 min and 137 min per session. Interviews were conducted at times and places convenient to the informants. Furthermore, observations during interviews and FB visits were also made to complement the data collection process.

Although the main source of data was the face-to-face interviews, secondary data were important to understand the context, background and meanings of the interviewees, their families and their businesses (Marques et al., 2022). Secondary data was collected from media articles, family business websites and social media platforms. The use of secondary data helped us to triangulate data obtained from the interviews and observations (Halcomb and Andrew, 2005) and to provide valuable contextual background for a more comprehensive understanding of the family business cases used in our study. It is common for qualitative studies (e.g. Suddaby et al., 2023) to incorporate secondary data to help researchers diversify the perspectives in a case study by drawing on a range of sources beyond interviews.

The collected data were analysed using the six-step reflexive thematic analysis method of Braun and Clarke (2020), which helped us with data engagement, coding and theme development. The choice to use this method was because we wanted to understand both the explicit and implicit textual meaning of the collected data (Braun and Clarke, 2020) and to reflect on overt and covert patterns and themes embedded within values in the context of indigenous black South African FBs.

In step one of data analysis, data familiarisation involved listening to the audio recordings and transcribing the data word-for-word into a Microsoft Word document. Transcribed interviews were sent back to the informants to check if they were captured correctly in the transcription. In step two of data analysis, we defined the coding units to be analysed in the data coding process. A computer-assisted qualitative data analysis software, ATLAS.ti version 10, was used to manage the data coding process, as we had large amounts of textual data. Dalkin et al. (2021) recommend the use of such software, as it assists qualitative researchers with the inherently complex approach to theory generation and may also help to enhance transparency. The data coding process involved three phases and started by identifying and coding the values upheld by the FBs.

In the first phase of data coding, we started by reading the entire data set to get an overall impression and understanding of the data. In the second phase, following Bingham’s (2023) suggestion, we coded the data using deductive codes derived from the literature and inductive codes that were not explicit in the initial theoretical grounds. In the third phase of data coding, we compared, reorganised, focused and synthesised the codes generated from the first and second phases. During this third phase, we also collapsed the first-order codes into second-order codes using summarising labels developed and borrowed from FB research concepts. Our use of both deductive and inductive codes aligned well with the abductive reasoning approach we adopted. This approach was particularly valuable for our study, as it enabled us to utilise social capital theory and Musengi’s (2006)FB value sets framework within indigenous black South African as initial guides for data analysis and coding, while also remaining receptive to unexpected or puzzling findings that might necessitate new theoretical interpretations (Co et al., 2024). Musengi’s (2006)FB value sets framework facilitated the categorisation of FB values, whereas social capital theory helped us examine how these values shape the engagement of FBs with the communities they serve. Table 4 presents the data structure for FB values and illustrates the progression of data coding from raw data to first and second-order codes and finally to aggregate themes.

In step three of the data analysis process, we conceptualised initial themes from the list of codes using axial coding to search for relationships between the codes and converted them into higher-order level categories. The development of themes came about as a result of multiple iterative steps between the data, and we ensured that the developed themes were grounded in the data (Gioia et al., 2013).

In step four, we consolidated and further analysed all the initial themes generated from step three by developing and reviewing the data set. As is the nature of most qualitative studies (e.g. Busch and Barkema, 2022; Marques et al., 2022), developing and reviewing themes relied on the continuous analytical examination of codes and initial themes developed. Step five involved refining and defining the generated themes, by conceptualising themes as both “shared-meaning” and “shared-topics” that underpin the central concept in the data. In step six, we consolidated and refined all the different ranges of writings, such as field notes, coding memos and journals, into a single output directed at answering our main research question in the study. In addition, several measures were implemented to ensure data trustworthiness and integrity. These included participant validation of transcribed data, triangulation of data sources and persistent observation to enhance credibility. Furthermore, detailed and thick descriptions of the research setting and participants were provided to support the authenticity and transferability of the findings. Table 5 shows the data structure for how FB values (identified in Table 4) shape community-level engagement, as well as how we moved from first-order codes to aggregate themes. Thus, Table 5 demonstrates how FB values, from Table 4, inform community-level engagement practices, reflecting a second-level analytical move from values identification to understanding what these values do in practice. To illustrate how Table 5 extends the analysis in Table 4, consider the FB value of Community identified as an aggregate theme in Table 4. In Table 5, this value is seen shaping the engagement practice of “Community advancement” through community development and community empowerment. For example, the second-order codes under the value of Community, namely showing concern and investing in communities, giving back to the community, engaging in community and community charitable activities, are directly linked to second-order codes under the aggregate theme “Community advancement.” Another example, consider the value of Humanness listed in Table 4, which highlights interconnectedness and shared social identity with the community. In Table 5, this value is seen as shaping the Community connectedness between the FB and the community, through forming strong relationships, trust, identity and belonging.

It is important to state that while the coding process of determining how FB values shape the community-level engagement of these businesses is inspired by social capital theory, the outcome of the data analysis process as a whole (as presented in the findings section) is more inductive in nature as no study of this nature has been conducted using either social capital theory or other theories as lenses to research this phenomenon.

To address the first research question, the value sets identified in indigenous black South African FBs are supported and described in Table 4. Based on Musengi’s (2006)FB value sets framework, which distinguishes between family and business values among black South African FBs, the values identified were categorised as either “family” or “business” values or as overlapping of both, and these are explained below.

The family values identified were familial sacrifice, familism, humanness and spirituality. Most younger family members witnessed their parents’ struggles during the business’s inception, fostering a deep appreciation for their sacrifices. It can be inferred that the value of familial sacrifice has fuelled the younger generation’s commitment to the FB, propelling them to work tirelessly to ensure its continuity. Moreover, the ethos of familial sacrifice is exemplified when owning families prioritise the needs of their businesses over their own, ensuring business viability and safeguarding the employment of non-family employees, who largely come from the local communities they serve.

The participating families exhibit remarkable levels of closeness, care, support and affection among their members. Their deep appreciation for familism is palpable in the quality and quantity of time they spend together, fostering an atmosphere of openness and engagement and underscoring the significance they attribute to their bonds. The emphasis on familial closeness is further underscored by how members interact and stay connected, nurturing a strong sense of unity and cohesion.

In our study, the value placed on humanness is evident in how participants are interconnected, how they interact and share with others from their community, their belief in a spirit of togetherness and the sharing of bonds with others, especially those working in their FBs. Participant 9 demonstrates this interconnectedness, commenting: “We laugh together, we cry together.”

The significance of spirituality is evident in the participating families’ strong adherence to their Christian faith and African traditions. Prayer holds a central place in their lives, both within their homes and in their FBs. Participant 9 illustrates the integration of prayer into their FB:

Participants frequently referenced biblical teachings and scriptures throughout the interviews, underscoring the importance they attribute to their Christian beliefs. While some individuals lean more towards Christianity, others embrace a blend of Christian and African traditional practices. Participant 2 articulates this hybrid approach:

Six values were categorised as business values, namely, business reputation, community, fairness, partnerships, professionalism and reliability. Our findings reveal that the FBs highly prioritise their business reputation in the business realm, which is evident in their consistent commitment to conducting operations that safeguard their family’s name and that of their business ventures. For example, in Case 2, business awards and certificates are displayed in the business visiting halls and offices to show both staff and visiting external stakeholders that the FB is recognised nationally for the excellent work they do in both the industry and the communities they operate in. The FBs motivate employees to always consider and uphold the business’s reputation. As Participant 8 explains:

The great value placed on the community is evident in that the participating FBs are mindful of the need to impact the local communities in which they operate and to make decisions that benefit them. They recognise the interconnectedness of all members of society and consider the well-being of those less fortunate as their responsibility beyond the family and business success. This mindset reflects a deep understanding of the Ubuntu principle, an African philosophy where collective well-being and communal harmony are prioritised over individual gain (Ngubane and Gumede, 2018). The participating FBs show concern for and attempt to address some of the challenges their communities face by giving back through charitable activities. For example, the son of the business Case 3 founder was quoted in a local newspaper saying:

Our findings suggest that treating all people fairly without discrimination or favouritism is valued by the participating FBs. Even next-generation family member employees are treated no differently from other employees in the FB. These FBs value fairness because it enhances stakeholders’ perception of the integrity and ethics of the family and the business, which could enrich their reputation. Hence, effort is put into ensuring that all people, including non-family members and customers, experience impartial treatment. As Participant 8 explains:

The participating FBs emphasise forging partnerships and prioritise collaborations with key industry and community stakeholders to further their business interests. For example, the website of Case F indicates:

Case E collaborated with the local municipality to establish its second traditional clothing retail outlet. In contrast, Case B strategically allied to add a funeral policy to their offering, showcasing their commitment to seeking mutually beneficial partnerships. Furthermore, partnerships through collaborations with community leaders are important for these FBs when engaging in community activities meant to benefit their communities and ensure that activities are aligned with the cultural systems of their communities.

Our study findings underscore the participants’ strong emphasis on professionalism within the FB setting, which is palpable through their prioritisation of cleanliness and orderliness, dedication to upholding high standards and relentless pursuit of service excellence. Creating a welcoming and professional environment from the outset leaves a positive impression on customers and sets the tone for the entire business relationship. They also recognise that such professionalism plays a crucial role in shaping the perception of their business as legitimate and reputable among stakeholders.

The value placed on reliability by the participating businesses is evident in that these FBs want to be depended upon by their customers. Participant 3 adds:

They keep promises to clients and demonstrate a strong commitment to integrity and transparency in business relationships. Consistently delivering on promises and communicating effectively with clients strengthens their existing relationships and enhances the business’s reputation within the industry. Through these practices, the FBs cultivate loyalty and satisfaction among their client base, ultimately contributing to long-term success and growth.

Several overlapping family and business values were also identified. The importance of benevolence is evident among all the owning families and their businesses. This is demonstrated by how they treat others, assist and empathise with them. Preserving the welfare of both employees and customers is also evident in how these families put them above financial gains. For example, dignified burial services are provided regardless of the financial consequences to the business.

Honesty is also identified as an overlapping value. Upholding honesty and transparency build trust with clients and upholds the reputation and credibility of these FBs. There is a great emphasis on business ethics and the culture of doing the right thing, which reflects a commitment to integrity, honesty and honour in the practices of these FBs. Furthermore, maintaining a commitment to doing the right thing demonstrates a sense of responsibility to society and the environment. It reflects an understanding of the broader impact of the FBs’ activities and a dedication to contributing positively to the communities in which these businesses operate. Incorporating these principles into the FB culture has helped them create a sustainable and ethical business environment that prioritises the well-being of all stakeholders.

Our study illuminates the deep-seated appreciation for humility among the participants, themselves and others. This cherished value is passed down through the teachings of elders and the exemplary conduct they exhibit. Guided by the wisdom and actions of the older generation, the next-generation family members internalise humility as a core aspect of their identity and worldview. They embrace simplicity in their lifestyles and abstain from any sense of superiority over others. Moreover, our findings underscore the significance of humility within the participating FBs. This is evident in their engagement with stakeholders, particularly customers and employees, where humility manifests in their approach and treatment. Engagement with employees and clients reflects a willingness to listen, learn and adapt to their needs, ultimately enhancing the overall employee and customer experience.

Within owning families, our study indicates a consistent emphasis on demonstrating respect, a value that is ingrained within the family dynamics and perpetuated from one generation to the next. Next-generation family members are actively taught the importance of respecting their elders, extending this reverence to individuals outside the family circle. The significance of honouring one’s elders resonates deeply with the rich tapestry of African culture. Participant 7 further comments, saying:

In the context of FBs, great value is placed on respecting stakeholders (employees and customers) by prioritising respectful communication, fostering positive relationships and leading to a more harmonious and productive work environment.

Our second research question explored how the identified value sets (see Table 4) shape community-level engagement of indigenous black South African FBs. From our data coding, five themes were developed that help us explain how FB values shape the community-level engagement of these businesses. Table 5 shows the data structure of how values shape community-level engagement.

Our finding relates to the FBs placing importance on community advancement, which we describe as community-level social responsibility activities aimed at improving social, economic and physical conditions through collective efforts while enhancing the ability of community members to take control of their circumstances and make informed decisions. These FBs emphasise advancing their communities by engaging in community development projects. In our study, community development refers to business “activities enacted with the specific intent to benefit communities” (Banks et al., 2016, p. 246). For example, in Case 6, the FB has contributed to developing its community by building a computer training facilitation centre, and in Case 2, the FB regularly sponsors community soccer tournaments and collaborates with the local Church to provide tombstones for members who have passed away. Other community-level social responsibility activities undertaken include grocery giveaways, renovations of community schools, supporting community sports development, supporting local school careers’ day and an after-school care centre. These businesses recognise that the better they do, the more they want to help their communities, demonstrating the symbiotic relationship they have with the communities they serve. This point is well represented by the following statement:

There is also a sense that the participating FBs view community empowerment as a responsibility of theirs, necessary for community advancement. In our study, we define community empowerment as people’s ability and authority to make choices that affect their lives based on the resources at their disposal (Duarte et al., 2021). They empower their community by creating employment and offering employment opportunities to older and unskilled local community members. Their views on community empowerment are evident in that all the participating FBs are aware of their important role in creating jobs. This finding is well captured by the following statement:

From our findings, it is evident that the need for FBs to do activities that advance their communities through community development and empowerment could be influenced by their value orientation on benevolence, familial sacrifice, community and business reputation. As suggested by Peake et al. (2017), these community-level social responsibility activities are especially important to small- and medium-sized FBs and their communities, as they help them address challenges facing their communities. Lumpkin and Bacq (2022) concur that FBs exhibit a strong commitment to addressing societal challenges and social ills with direct consequences for the communities where the businesses are located. As seen in our study, community-level social responsibility activities are performed by FBs with an aim to improve the social, economic and physical conditions of the communities they serve.

Our study reveals that the participating FBs place great importance on community-level engagement due to the level of community connectedness they enjoy. In this study, we define community connectedness as the FB’s strength of relationships, trust and shared identity with the community, highlighting a sense of belonging, engagement and commitment to the broader community. Community connectedness is expressed in two ways: the community’s connectedness to the FB and the connectedness of FB to the community. With respect to the community’s connectedness, we observed that the participating FBs perceive that community members view them as an important part of the community and as putting the community first. For the participating FBs, it was having a heart for the local community and a deep understanding of the local context that contributes to their communities respecting, appreciating and loving them and feeling a sense of connectedness with them. This finding is represented by the following statement:

Participating FBs engage with their local community in empathetic and respectful ways and tend to exhibit a favourable image and reputation; as a result, they are revered and supported by the local communities in which they operate.

With respect to connectedness to the community, we observed that the older FBs, in particular, still benefit from the community’s respect earned by the founding generation because of the founding generations’ deep connectedness to their communities. Because the participating FBs put their communities first and have a heart for the community, these businesses are known in their communities and they have benefited from having their names associated with positive reputations. One participant describes this reciprocal benefit that the FB receives from its community:

Our study reveals that the participating leaders know and understand the local context where their businesses operate. These businesses are deeply connected to and embedded in their local communities and emphasise preserving long-lasting relationships with local stakeholders. The embeddedness of FBs into their local communities is further demonstrated in our study by how the older FBs have assisted their communities in times of national crisis and continue to do so. For example, Case 2 and Case 3, operating in the funeral services industry, were established during the Apartheid era. These businesses supported people who fought against the oppressive system during this period, when numerous black African people who died because of clashes with the police were given free burial services by these businesses. This finding is accompanied by the revelation that older FBs (e.g. Case 2 and Case 3), who have become embedded in their local communities over time, demonstrated more responsibilities towards their communities in crises than younger FBs (e.g. Case 6 and Case 7).

In our study, community connectedness is shaped by values of community, familism, humanness, reliability and respect. These values emphasise building trust, relational closeness and mutual respect, assisting the FB to form strong relationships, trust, identity and a sense of belonging with the communities they serve. For example, the value of respect is necessary for building trust and mutual recognition between the FB and the community members. Kandade et al. (2021) highlight that high-quality relationships develop through mutual respect and trust between the FB leaders and FB stakeholders.

Culturally mindful engagement refers to contribution to the community while observing its cultural system and respecting its traditions, values and social norms. The engagement between the participating FBs and their communities is characterised by a need to respect and accept the cultural traditions, values and norms of the communities in which they operate. Observing the local community’s cultural system helped the FBs to be accepted and welcomed by these communities. As Participant 1, who is the founder of Business Case 1, explains:

We observed that the participating FBs are committed to understanding and respecting their communities’ socio-cultural values and beliefs. Having a strong understanding of the community’s local cultures helped the FBs to respect the values and traditions of these communities. These businesses understand the importance of conducting business that aligns with community values to foster mutual respect and appreciation. Participant 11, who is the current CEO of Business Case 5, which focuses on the traditional clothing crafting business, explains her position when it comes to observing and respecting local culture:

We also find that participating FBs see the need to make meaningful contributions to their communities continuously and to make a difference in people’s lives. Being involved in culturally mindful engagements helped them foster sustainable and meaningful development in the communities they serve. Participant 12 highlights that as they continue creating wealth for their families, FB owners and leaders should ask, “What impact are we going to make on the community?” The need to make an impact on the community is supported by the necessity for the participating FBs to be accepted by the community by not always focusing on the “bottom line” but undertaking activities that meet the expectations of the community. FBs play a vital role in meeting community expectations by upholding shared values, supporting local initiatives and fostering long-term relationships built on trust. For example, Participant 10 gave an account when the owning family wanted to relocate to a new province and needed to close the FB, but had to consult with employees who were based in the local community before taking such a drastic decision:

For FBs to effectively contribute to the community without violating the cultural systems and traditions of the community, values such as community, humility, partnerships, respect and spirituality are important. As observed in our study, these values promote culturally sensitive and ethical engagement from the FB, which enables these businesses to have respect for cultural systems, norms and traditions in their community engagement practices.

Our analysis reveals that the FB value sets shape their engagement with their communities by placing them at the heart of what they do, recognising the needs of these communities. We found that these businesses have a community-centred ethos, which refers to embodying a sense of responsibility towards the community and the practice of listening and showing empathy to community members. Through their commitment to ethical practices and social responsibility, they make meaningful contributions by creating jobs, supporting education and investing in community well-being. Guided by a strong ethical and moral responsibility, they also recognise their duty to protect the environment, ensuring their operations contribute to both social well-being and environmental sustainability. Because FBs are embedded in their communities, they tend to feel a sense of responsibility towards local stakeholders and the economic development of their local communities. The value and appreciation they place on their community show how important they are to the families and their FBs. The businesses demonstrate that they understand the social challenges and the needs of their communities and are committed to addressing them. As founder, Participant 12 explains:

With respect to listening and showing empathy, most of the participating FBs are located and operate in high-density areas inhabited by the poor and underprivileged, who do not have the financial means to pay for services. A love for the people and their communities has seen the FBs listen to and empathise with the poor to pay for the services offered to them by the businesses. For example, Participant 8 reflects on the FB founder’s empathy and describes him as genuinely caring for people and their well-being. The founder’s empathy drove the actions and decisions taken in the FB, shaping the ethos of the business as a compassionate and supportive presence in their communities:

In our study, values that underpin a community-centred ethos in community engagement include benevolence, community, honesty and familial sacrifice. These values foster FBs’ ethical presence in communities they serve and moral accountability in their engagement practices. For example, by being benevolent, FBs are community-minded, enabling them to be empathetic and have a sense of social responsibility towards their communities. Similarly, the importance placed on listening and assisting community members echoes the commitment of FB founders and leaders to serve the community with care and empathy. Their reputation for helping those in need attracted community members who felt comfortable approaching them for assistance, creating a supportive and non-judgemental environment for those seeking help. By showing empathy towards the plight of community members, respecting them, contributing to, supporting community development and engaging in community-level social responsibility activities, the participating FBs show the community that they value and appreciate them.

We further observe that because these FBs place importance on respect, fairness, business reputation and professionalism, we find that having positive and favourable family and business social standing is also important to them. Family and business’s social standing refers to the perceived status of the owning family and the business, shaped by their reputation and the quality of relationships they have with stakeholders. In our study, founders and next-generation leaders have alluded that their FBs are well-known in their communities because they have been operating in them for a long time. What these businesses do and continue to do in their communities enhances their social standing in their communities. Creating social status by FBs explains higher levels of proactive stakeholder engagement as the family and the business aim to become responsible actors, which helps the family and the business to gain social legitimacy and an enhanced identity and reputation. The following statement captures our findings:

Moreover, some of the participating FBs continue to benefit from the reputational legacies of the founders several years after their passing. The work the founders and their families have done in their local communities has had long-lasting benefits for both the business and the community. As evidenced from Case 3, a funeral parlour business, the primary focus of their business is not financial gain but rather the welfare of the community it serves. The reputation of this business is built on its history of assisting community members in burying their loved ones, even when financial resources are limited. One of the participants explains this point in the following comment:

This study aimed to respond to two research questions, namely:

We discuss the major findings relating to these questions in the sections that follow.

Our data shed light on the various value sets found in indigenous black South African FBs that influence how they engage with their communities. Consistent with the literature (e.g. Ngubane and Gumede, 2018; Zoogah, 2013; Adams et al., 2012), these families and their businesses uphold collectivistic and humanistic values. Collectivistic values aim at how human beings relate to each other and the communities in which they live (Lin, 2013). In our study, values identified as collectivistic were benevolence, community, familial sacrifice and partnerships. As applicable in our study, these values demonstrate the integration of the owning families and their businesses in the indigenous African contexts and communities. This integration is seen by the willingness of the families and businesses to sacrifice their interests for the sake of the broader community (Hoxha and Ramadani, 2023). In line with indigenous African cultures, collectivistic values prioritise the well-being of and goals of the group over the individual, such as the needs of the community or society (Ngubane and Gumede, 2018). For example, as suggested in the literature (Gόmez-Mejίa et al., 2011; Gόmez-Mejίa et al., 2007), the participating FBs place importance on preserving and enhancing the welfare of community members by showing empathy and assisting those in need. They do so because they want to make a difference in people’s lives and communities, and in doing so, they emphasise the collectivism embedded in their African cultures (Ngubane and Gumede, 2018).

The value sets that shape the community-level engagement of indigenous black South African FBs and their communities were also found to be humanistic. Humanistic values are “things, features, or conditions that satisfy the normative requirements of or somehow enhance the selfhood of human beings or satisfy the requirements of the culture or the social order in a way that makes the persons, culture, and social order involved more fully what they ought to be” (Adams, 2003, p. 66). In our study, humanistic values were fairness, honesty, humanness, humility, spirituality, reliability and respect. These values are needed so that the culture or social order can effectively work as it should.

Similarly, as observed in our study, the participating families and their businesses place importance on respecting people, especially the elders in their communities. It is common for indigenous black communities to place great importance on respecting each other (Metz, 2020) and treating each other with dignity, as they believe that the level of respect facilitates relationships within their community and the treatment members of the community receive from each other (Awoniyi, 2015; Sesanti, 2010). In line with the humanistic nature of the African culture, the participating FBs demonstrate the value they place on humanness through believing in a spirit of togetherness and sharing a bond with others, especially those working in their FBs. Obidi (2005) contends that in traditional indigenous black communities, members work together for the welfare and prosperity of the cultural group. By presenting the FB as a “responsible and active member of society,” FBs see the need to engage with their local communities through building connections and networks (Chirapanda, 2020, p. 65).

Our study offers a nuanced understanding of how values shape the interaction between indigenous African FBs and their communities through physical and emotional community engagement. Physical engagement involves social responsibility activities such as grocery giveaways, renovations of community schools, supporting local school careers’ day, an after-school care centre and community soccer tournament sponsorships. On the other hand, the emotional engagement of the participating FBs is described in terms of their community’s perceptions and acceptance of them, as well as the appreciation they have for their communities. For these businesses, emotional engagement is important as it shapes their physical social responsibility activities, which leads them to be more socially embedded in their communities.

Our finding corresponds with the literature, noting that values guide FB-community social interactions, thereby enhancing FB’s social capital (Sorenson, 2013; Carlock and Ward, 2010). Pratono and Han (2021) also emphasise that values significantly influence and shape how FBs relate and engage with stakeholders. Our study shows that because FBs value having a favourable business reputation, they tend to be concerned about their stakeholders’ perceptions of their business, particularly those of their communities. Engaging in social responsibility activities not only builds their social capital but also assists FBs in fulfilling the emotional needs of the family and the FB, which contributes to the overall success of the business (Kuttner et al., 2021).

We observed that the participating FBs value their communities and pursue social responsibility initiatives to promote development and empowerment. The literature supports that such initiatives help meet the emotional needs of the owning family, while establishing a positive image and community presence (Zellweger et al., 2013). Further, the prominence of social responsibility activities in FBs could be attributed to the close connection between the image and reputation of the owning family and that of the business, as well as their deep embeddedness in the local communities in which they operate (Laguir et al., 2016). As such, FBs cultivate their embeddedness in their local communities and use social capital as an integral part of their strategy (Zellweger et al., 2016).

Dick et al. (2021) point out that FBs are known to engage in external community engagement, such as local community charitable initiatives, that allow them to be recognised as good citizens. As our study shows, the participating FBs view community development as their responsibility (Martín Castejón and Aroca López, 2016). Similarly, Matchaba-Hove (2020) found that indigenous African FBs strongly emphasise social responsibility activities inside and outside their FBs. FB values such as partnerships, business reputation, community, benevolence and honesty facilitate greater adoption of socially responsible activities by FBs (Iaia et al., 2019). Moreover, our study suggests that indigenous black South African FBs demonstrate their collectivistic and humanistic values by showing concern for community members’ plight and supporting community development by engaging in various social responsibility initiatives. The participating FBs are empathetic and respectful towards their communities and have a heart for them. As Lefa (2015) suggested, the participating businesses recognise the human vulnerabilities of their community members and seek the collective good to enhance the prosperity of the communities they serve.

FBs deem their commitment to the community as the most essential dimension of community-level engagement contributing to business performance. That is, the more committed FB is to the community, the more successful it perceives itself to be, yielding greater business performance. As in our study, community-level engagement serves as a motivating factor for the community involvement of FB owners and leaders (Jorgensen et al., 2020). Jorgensen et al. (2020) found that when FBs are more involved in their communities, the communities tend to reciprocate with higher levels of involvement in the FBs. Interestingly, these higher levels of involvement were associated with higher levels of perceived business success by the owners. This relationship reinforces how important it is for FBs to build their social capital and enhance their community-level engagement through increased engagement with their communities.

We advance that because of the symbiotic relationship that exists between the participating FBs and their local communities, mutual benefits and long-term success are generated for the owning families and their businesses. Not only are they benefactors to the local communities they serve, but they are also beneficiaries because, through their community-level social responsibility activities, long-lasting relationships with their communities have been developed, allowing them to be known by local customers. This familiarity makes it easier for customers to identify with the FBs, enhancing their customer experience and loyalty. Similarly, through increased participation in local community events and charity functions, FBs increase their visibility among the local community, which fosters goodwill (Stankiewicz, 2016; Berrone et al., 2012). The value the participating FBs place on external stakeholder perceptions is evident in their efforts to continuously operate ethically, which protects their family name and that of their FBs. As a result, honesty guides all their business dealings, and following through on their commitments and promises is paramount (Zwack et al., 2016; Koiranen, 2002). Furthermore, participating FBs want to be viewed as trustworthy and reliable in keeping their promises to stakeholders. Several authors (Azizi et al., 2017; Gόmez-Mejίa et al., 2011) note that the relationships between FBs and their external stakeholders are built on trust and are reinforced by strong emotional bonds. The participating FBs are seen as active and supportive members of their communities, which enhances their social standing, reputation and brand image (Berrone et al., 2012), which ultimately attracts more customers.

Our study informs the development of community-based development models that integrate indigenous values into social change and empowerment strategies. By aligning community-level social responsibility activities with local value systems and beliefs, indigenous African FBs can foster community ownership, participation and sustainability in development initiatives. As Magni (2017) argues, these strong local and contextual connections to cultural value systems and beliefs make indigenous knowledge essential to indigenous people’s lives. These provide the necessary means to community empowerment, survival and sustainability. Therefore, such development initiatives should emphasise the importance of preserving and promoting cultural diversity, heritage and practices while paying attention to economic and environmental considerations.

Furthermore, our study shows the potential capacity of indigenous African FBs to contribute to broader global efforts to address poverty, inequality and social justice. These efforts are aligned with the United Nations Sustainable Development Goals, highlighting the interconnectedness of local business practices with global development agendas. Bansal et al. (2024) highlight the transformative potential of indigenous knowledge and mechanisms in addressing multifaceted challenges across livelihoods, local economies, politics, policies and climate change.

Based on the above discussion, we propose a values-based community engagement framework for indigenous African FBs (see Figure 1). The framework attempts to align the value systems of indigenous African FBs with their community-level social responsibility activities, as well as their engagement with their communities and, ultimately, the outcome of these engagements.

For this framework to be practical, sustainable and adaptable in our cultures, we offer three broad assumptions that underpin our values-based community engagement framework. First, we assume that FB leaders (owners and managers) have a deep cultural competence regarding the local community’s traditions, leadership structures and values. Scholars (e.g. Tawiah et al., 2025) assert that business leaders leverage their cultural competence, social networks and understanding of the local context to design and implement CSR activities that are relevant, effective and impactful. Leaders need to take stock of their own identities, as knowledge of the culture of self is at the heart of understanding others and their surrounding world. We assume that through self-reflection, leaders will look at their own beliefs, biases, attitudes and assumptions and have a greater appreciation for different local cultures that exist in their communities (Singh, 2020).

Second, since founders want to see succeeding FB leaders uphold their values in managing and running the FB (Tengeh and Phikiso, 2021), we assume that community engagement is practical if current and future leaders align their understanding and commitment to the core values set to ensure consistency in decision making relating to CSR activities. We believe that the integration of CSR into corporate strategy is essential, as the beliefs and value systems of entrepreneurs significantly shape sustainable community engagement practices (Perrini and Minoja, 2008). The literature highlights that leadership commitment is essential for establishing effective communication with community partners, which builds trust and encourages collaboration (Park, 2025). Since FBs often enjoy high levels of public trust, trust-based capabilities of FBs can provide insights into credible communication and issues management, enhancing their role as community influencers (Griffin and Youm, 2023). Leadership commitment to ethical practices and community involvement strengthens the trust relationship between FBs and their stakeholders and enhances their social capital (Hadjielias et al., 2025).

Finally, we assume that the FBs have the resources and the capacity to engage in community-level social responsibility activities. FBs often have limited resources, which necessitates strategic allocation to CSR activities that align with their business objectives and community needs (Kim et al., 2023). Ibrahim et al. (2020) argue that unique FB characteristics, such as familiness, business size and generation, may influence the resource allocation decision of community engagement initiatives. Effective resource allocation is crucial for maximising the impact of CSR activities, as family firms must prioritise initiatives that yield the best outcomes for both the business and the community (Stock et al., 2024).

Since individualism and collectivism are not mutually exclusive but exist on a continuum, with societies exhibiting varying degrees of both (Chowkase, 2023), the proposed values-based community engagement framework for indigenous African FBs can be adapted and applied in other communities grounded in collectivist philosophies, such as those in Asian and Latin American cultures. The framework is rooted in African collectivism, which draws on the principles of Ubuntu, extended kinship, moral reciprocity, the embeddedness of businesses in local economies, communal obligation and shared responsibility for community welfare. These principles partially align with Asian collectivism, which emphasises Confucian harmony, family-oriented loyalty, hierarchical relationships, respect for elders and authority and moral duty to community roles (Zhao et al., 2023; Chu and Vu, 2022). Similarly, Ubuntu shares commonalities with Latin American collectivist values, such as Familismo, moral duties, community solidarity and the importance of neighbourhood support systems (Artina et al., 2020).

Research on community engagement in Asian and Latin-American FBs demonstrates that organisations in these cultures can leverage their cultural value systems to foster positive social and economic outcomes (e.g. Serrano et al., 2024; Giacomin and Jones, 2022). Thus, the similarities among these collectivist cultures provide a foundation for adapting the proposed framework, provided it is aligned with the specific relational ethics, family structures and community leadership models of each context.

However, despite these overlaps, key distinctions exist due to the unique philosophical foundations, social structures and historical experiences of African, Asian and Latin-American collectivisms. These differences can significantly influence how community engagement is understood and practised (Artina et al., 2020). For instance, FBs in Asian and Latin-American cultures may prioritise hierarchical order, duty to authority (Üskül et al., 2010), emotional closeness, religious traditions and family solidarity, particularly within nuclear and extended family units (Chenet Ugarte and Barmeyer, 2025). In contrast, Ubuntu promotes relationality, communal compassion and community-centred engagements that extend beyond the family unit (Metz, 2020). These varying value systems shape how community engagement is conceptualised, implemented, funded and sustained. Recognising these nuances is essential for fostering meaningful cross-cultural collaborations and effective community engagement initiatives. Rather than imposing a one-size-fits-all model, the differences among collectivist cultures offer FBs and other organisations opportunities to tailor community-based strategies that resonate with the values and priorities of the communities they serve.

While collectivist cultural values across African, Asian and Latin-American FBs all support strong community engagement, the underlying logics of care and mechanisms differ. African FBs may emphasise relationality, spiritual community and restorative practices. Asian FBs tend to focus on hierarchical duty, social harmony and reputation management, whereas Latin-American FBs emphasise emotional bonds, relational ethics and moral proximity. Therefore, when applying the proposed community engagement framework in non-African collectivist contexts, these cultural distinctions must be carefully considered to ensure its relevance and effectiveness.

Our study contributes in several ways to the FB and socially responsible literature. We are the first to investigate the relationship between the values of a unique sample of indigenous African FBs and the impact of these values on their socially responsible behaviour at the community level. Our findings show that these businesses undertake community-level social responsibility activities and that “community” itself is important to them. Emphasising community-level social responsibility activities alongside FB values provides an important context for understanding the role values play in shaping the engagement between FBs and the communities they serve, particularly in this study from an indigenous African perspective. As suggested by several authors (e.g. Agyapong and Acquaah, 2021; Rau et al., 2019), understanding the nature and role of values from an indigenous African-based perspective might also contribute to explaining the heterogeneity found in FBs on issues such as business culture, socially responsible behaviour and longevity.

Second, by investigating the relationship between FB values and the socially responsible behaviour of a FB, we contribute to social capital theory. Our study used FB values as informal institutions and looked at how they shape the FBs’ engagement with their communities. Because institutions are shared rules among a group or community, it is important to understand how they shape and inform the interaction groups (e.g. families and FBs) have with each other. Furthermore, institutions offer a better understanding of the relationship between shared rules and beliefs, such as organisational values and business performance (Kafouros et al., 2022). As suggested by North (1990, p. 6), institutions play an important role “to reduce uncertainty [and] establish a stable structure to human interaction” in organisations. Informal institutions codify appropriate practices for organisations and reinforce social order systems and social relationships (Berrone et al., 2022). Therefore, our study offers theoretical significance in explaining the behaviours of owning families and their businesses, as well as how FBs engage with their local communities.

Third, investigating how community-level engagement is shaped by the value sets of indigenous black South African FBs provides theoretical insights into the cultural dynamics of CSR. Our study develops a framework for indigenous African FBs and community engagement that aligns the value systems of indigenous black South African FBs with their community-level engagement. This alignment of African cultural values, traditions and beliefs with community-level engagement ensures authenticity and resonance within the local communities served by businesses. Cultural values embedded within indigenous African FBs shape their social investments and community engagement. These businesses draw upon their cultural heritage, identity and values to address community needs and contribute to social development. This contribution calls for indigenous African FBs to leverage their cultural capital to enhance their social legitimacy, reputation and relationships with stakeholders while contributing to the long-term sustainability and competitive advantage of their businesses (see Agyapong and Acquaah, 2021; Rau et al., 2019).

In addition, we provide insights into the unique cultural values, traditions and practices that shape the operations and decision-making processes relating to community engagement and CSR practices from an indigenous perspective. Understanding these values is important for appreciating the intricacies of indigenous entrepreneurship and how it may differ from Western models (Agyapong and Acquaah, 2021; Acquaah, 2013). The cultural values of indigenous African FBs offer not only a postcolonial perspective on entrepreneurship and economic development but also emphasise the agency of these businesses reclaiming their economic and social power that challenges historical marginalisation, contributing to decolonising management theories and practices by centring indigenous African voices and experiences.

Fourth, our findings confirmed that a symbiotic and interdependent relationship between FBs and their local communities exists through the binding social ties that develop over time. Involvement in the community helps to build social capital through community acceptance, which increases the socioemotional wealth of the family by enhancing the family and business identity and reputation. Swab et al. (2020) suggest that family and business identity and binding social ties are often used to describe internal and external motivations related to the non-economic goals of FBs.

Finally, by adopting the social capital theory, our study contributes to a deeper understanding of the social embeddedness of indigenous FBs within their local communities. Examining the nature of socially responsible activities shows how the indigenous FBs interact with and contribute to their communities’ social fabric, networks and norms. Through involvement in the community, the owning families and their businesses develop social relationships and community embeddedness (Lumpkin and Bacq, 2022) that further contribute to their social capital and facilitate economic exchange. Understanding how indigenous African FBs engage with and prioritise the community’s interests as a central stakeholder helps contribute to a more holistic view of CSR and community engagement. By complying with their cultural values as institutional norms regarding CSR, indigenous African FBs influence social and community change and contribute to the evolution of socially responsible business practices within their local communities.

Our study provides relevant practical recommendations. First, we are hopeful that our study’s insights will generate awareness among FB leaders (e.g. founders, owners and managers) and practitioners of the role of value systems in shaping the community-level engagement of FBs. Investigating the role of values as informal institutions in shaping the engagement between FBs and the communities they serve may help business-owning families and their businesses to identify relevant values needed to inform their socially responsible behaviours. Since values influence business decisions, FBs need to identify and entrench value sets aligned to their community-level social responsibility to guide family and FB members in implementing the set strategy. The families and business leaders should also ensure that the behaviours of family and business members are aligned with the FB’s values. This is necessary to communicate and maintain consistent messages to different stakeholders, such as customers and members of the community.

Second, we believe that FB leaders and practitioners should design culturally mindful engagement strategies and mechanisms that align with local customs and participatory norms, such as storytelling, oral consensus-building, or community rituals. Such engagement mechanisms should follow African value systems, such as Ubuntu values, which can contribute to building the social capital of the owning families and their businesses as well as enhance their connectedness with the community. Moreover, training interventions on effective community engagement can help familiarise family members and owners with respectful, honest and dignified ways of interacting with their communities. With this knowledge, FB leaders and practitioners can proactively use language and messaging that reflect Ubuntu values, such as community, respect, humanness, spirituality, benevolence and humility. FBs that strive to strengthen their community citizenship preserve binding and long-term ties with local stakeholders and, in doing so, contribute to the economic and social development of the local community in which they are located (Baù et al., 2019).

Third, since small- and medium-sized FBs face challenges in efficiently allocating limited resources for both exploration and exploitation strategies (Ibrahim et al., 2020), they should create community engagement budgets that align with their financial capabilities and the identified community needs. Such budgets should help FBs set aside a portion of annual profits for community initiatives that contribute to social legacy investment. FBs that integrate CSR with financial performance are better positioned to achieve sustainable corporate performance (Le et al., 2025). High levels of CSR contribute to building social trust capital, which can enhance the social capital of FBs and improve stakeholder relationships (Zhang et al., 2022). Investments in CSR contribute to long-term sustainability by aligning economic, social and environmental objectives (Le et al., 2025).

Fourth, while our study has developed a framework for values-based community engagement for FBs, we recognise that values, as cultural ontologies and epistemologies, are not static and can change due to urbanisation, technology, education and intergenerational shifts. The framework provides a moral compass and not a checklist. Therefore, we encourage future family generations and FB leaders to conduct periodic values audits within the family to reflect on shifts in their belief systems and how they influence community-level social responsibility engagement. For example, the next-generation leaders can integrate Ubuntu values with entrepreneurial and environmental ethics (e.g. sustainability and innovation). We also encourage FB leaders and practitioners from non-indigenous African contexts to adapt this engagement framework by integrating values from other indigenous cultural and developing economic contexts that still retain foundational human-centred principles, such as benevolence, respect and humility.

While our study has made both theoretical and practical contributions, we have identified a few limitations, which may be considered as avenues for future research. Since our study used a small sample size of seven FBs and FBs as units of analysis, the units of observation being family members and insiders, neglecting external stakeholders (e.g. community members, customers and suppliers) associated with these businesses, we recommend that future research be conducted to take perspectives from outside the family and business. Future studies should incorporate the perspectives of community stakeholders, highlighting their views and phenomenological experiences of engaging with FBs operating in their communities. Community stakeholders are known to provide useful information and perspectives through their experiences as interested parties in what happens in their communities (Randolph et al., 2022). Furthermore, future research should extend our understanding of how cultural and value alignment between FBs and external stakeholders could enhance the community engagement practices of FBs. We recommend that future studies be conducted on cultural alignment and overlap with other theoretical perspectives, for example, Porter and Kramer’s (2011) focus on creating shared values between the FB and its stakeholders. Porter and Kramer (2011) suggest that a shared value approach reconnects an organisation’s success with social progress. Therefore, future studies might provide insights into the future of community engagement practices among FBs and other business organisations.

In this study, we conceptualised values as a unidimensional construct by examining FB values as an aggregated set. While this approach offers a general understanding of the role of values in FBs, it may mask the distinct influences that different types of values exert on decision-making and community engagement. Future research would benefit from adopting a multidimensional perspective, differentiating among personal, family, cultural and business values. Such an approach acknowledges that individuals operate within multiple, interconnected systems (Bronfenbrenner, 1979), each of which shapes behaviour and, consequently, influences business decisions and community interactions. For instance, personal values may reflect an individual family member’s ethical and moral beliefs; family values might prioritise transgenerational entrepreneurship and the preservation of legacy (Bagherian et al., 2025); cultural values could highlight communalism and interconnectedness (Kupangwa et al., 2025); and business values may focus on operational efficiency and growth (Jaskiewicz et al., 2016). These value dimensions can exert converging, complementary or even conflicting influences on FB practices, particularly in relation to external stakeholder engagement and community involvement. A multidimensional approach to values provides researchers with a more nuanced understanding of the moral and cultural logics that guide FBs, particularly those embedded in traditional or indigenous contexts. It enables the development of clearer propositions regarding how different types of values interact and shape FBs’ community engagement practices.

Values are dynamic cultural ontologies and epistemologies that evolve as family members respond to shifting social, economic and cultural contexts. Accordingly, future research could explore how the value systems of indigenous FBs evolve across generations. Such investigations are crucial for understanding intergenerational differences in value systems and how these differences may influence FBs’ approaches to community engagement. Tam and Chan (2015) observe that in an increasingly globalised world, many families encounter bicultural environments where external cultural influences reshape their values. Suddaby et al. (2023), in their study on the intergenerational transmission of values at Cadbury, a family business established in 1824 in England, found that values are not static but subject to redefinition. As next-generation members join the FB, they may reinterpret or challenge established family and business values to accommodate changing family structures, business environments and societal expectations.

In the context of indigenous African FBs, future research could also examine potential tensions between traditional African values and the forces of modernisation. Mwipikeni (2018) argues that Ubuntu principles may appear incompatible with modern society, highlighting a potential conflict between indigenous African communitarian values and contemporary capitalist, individualistic business practices. Studies in this area could draw on the concept of cultural hybridity to explore how indigenous FBs negotiate such tensions, potentially leading to value adaptation, integration, or the coexistence of dual logics.

While our study highlights the interdependence between FBs and their communities, it also opens several avenues for future research within the FB and CSR domains. Specifically, research that is attuned to family and FB identity may deepen scholarly understanding of heterogeneity within FB populations. For example, tracking how family identity evolves as the FB grows, potentially disrupting traditional community ties or altering the family’s socioeconomic status, presents a promising research direction with considerable implications (Randolph et al., 2022). In addition, future studies could explore cross-cultural comparisons of indigenous value systems and community engagement practices among FBs across different African cultures. While African cultural values tend to be broadly collectivist (Eaton and Louw, 2000), they are expressed through diverse traditions, belief systems and social structures that vary significantly across ethnic groups (Idang, 2015). Thus, comparative studies are needed to examine the extent of heterogeneity among African FBs. Such research could draw on theoretical frameworks such as stewardship theory, agency theory and institutional theory to better understand the differences and commonalities in how values influence community engagement. Using comparative institutionalism or ethnographic approaches may yield deeper insights into the role of value systems in shaping FB-community relationships, contributing to a more nuanced and contextually grounded understanding of FBs in indigenous African settings.