Corporate Independence and Sustainability of Family-Owned Enterprises in the Western Highlands of Cameroon

Abstract: This study aims to examine the influence of corporate independence on the sustainability of family-owned enterprises in the Western Highlands of Cameroon. 313 questionnaires were sent out to the founders and managers of family-owned enterprises in the western highlands of Cameroon, and 309 were recovered, making a recovery percentage of 98.72%. The study used the Quantile regression technique to test the hypotheses. Important instruments include financial autonomy, the role of the board of directors and the influence of family members. The results from the Quantile regression technique revealed that financial autonomy, the role of the board of directors and the influence of family members had a positive influence on the sustainability of family-owned enterprises; this indicated that corporate independence had a positive influence on the sustainability of family-owned enterprises in the western highlands of Cameroon. It further means that an increase in corporate independence leads to an increase in the sustainability of family-owned enterprises in the Western Highlands of Cameroon. Furthermore, in the North West region, corporate independence has a positive influence on the sustainability of family-owned enterprises; similarly, in the West region, corporate independence has a positive influence on the sustainability of family-owned enterprises. From the findings, the study recommends that founders and managers should further enhance financial autonomy, firstly, by building strong and stable banking and credit relationships through having a good credit history to access better loan terms when it is needed. Also, the Board of Directors should be allowed to function as an entity with roles and responsibilities which are roles such as making checks and balances through preventing high concentration of power by separating ownership, management and control. Lastly, Relatives should concentrate on protecting their family name and reputation by engaging in ethical practices and strong relationships with stakeholders like customers, suppliers, employees and the community.