Effect Of Trust Management On Performance Of Family Businesses In The Federal Capital Territory, Abuja, Nigeria

Abstract

This study examined the effect of trust management on the performance of family businesses in the Federal Capital Territory (FCT), Abuja. Recognized globally as a cornerstone of organizational sustainability and success, trust acts as a crucial enabler of operational efficiency. Consequently, this study investigated how the trust management (TM) constructs of competence, loyalty, and integrity affect the performance of family businesses in Abuja. Adopting a cross-sectional research design, the study utilized a survey method, administering structured 5-point Likert scale copies of questionnaire to a sample of 358 respondents from family businesses in the FCT. The results revealed a positive and significant effect of competence, loyalty, and integrity on the performance of family businesses. The study recommends that family business management adopt on-the-job training and job rotation to enhance employee competence, while simultaneously empowering employees to make decisions. Furthermore, the organization should implement rigorous recruitment processes to hire leaders with high integrity, and establish feedback mechanisms to monitor both superior and employee loyalty in the system. Finally, the study emphasizes that integrity should be understood as a core, rather than peripheral, component of sound business operations.