Lawrence Nicholson | Family business role in facilitating research

The coverage in at least two Jamaican newspapers of the stories and developments of one of the most financially successful family businesses in Jamaica and the Caribbean has elicited several questions.

A few of these questions have highlighted a need or a desire to have a better understanding of family-owned businesses, FOBs. Unfortunately, it is not always easy to provide answers that reflect the reality of Jamaican context because of the refusal or reluctance of many businesses to share data that can facilitate context-specific research.

Added to the refusal and reluctance to share data, there is the demand by some to have research output that speaks to the Jamaican reality.

The common refrain continues to be that university lecturers are not doing enough research that addresses issues related to Jamaica’s business sector. How one measures enough research is not clear, but there is enough data suggesting that Jamaican academics have been actively engaged in conducting context-specific research in different disciplines.

The demand from part of the business sector for more context-specific research seems to place the responsibility solely on the shoulders of those in academia. That is, there seems to be the assumption that timely, relevant, valid and reliable research output comes without a price-tag and that researchers can just pluck data from the sky.

It could also be the case that businesses might not be eager or willing to help in providing funding and the sharing of relevant data to facilitate context-specific research, because they are unaware the benefits. Yes, there are benefits to context-specific research. However, these might not be accessible until we get past some of the roadblocks.

Overcoming roadblocks

Lack of funding and refusal or reluctance to share relevant data are two of the main roadblocks faced in conducting research considered relevant and specific to the Jamaican business sector. Extracts from a conversation between a representative from the business community and a researcher highlight part of the challenge in overcoming these roadblocks.

Representative from business community: You guys up at the university seem to quote from and rely on findings from research from overseas. Not enough research is being done that is relevant to situations in Jamaica.

Researcher from UWI: That is not a true statement. There is a large body of research which is locally based and informed by data from the Jamaican context.

Representative from business community: Okay. I might exaggerate a bit. However, I still believe more can be done.

Researcher from UWI: I agree. However, there is a cost attached to doing research, and … .

Representative from business community: I know. But government pay you guys to do research, so why can’t you use part of your pay to do this research?

Researcher from UWI: Many lecturers at UWI and UTech use their own money to fund research, along with funds received from funding agencies. However, you seem to be suggesting that the private sector has no responsibility in helping to fund research that could benefit them. To be clear, UWI and UTech for sure have benefited from private sector-funded research. However, the demand being made by sections of the business community seems to be inconsistent with the support they are willing to give, in terms of funding and the sharing of data.

Representative from business community: No. I am not saying that we don’t have a role. But you guys are paid enough to use part of this to fund your own research.

Researcher from UWI: You have this all wrong. Say that we decide to use our own money to fund the research, what can be done to get you and others in the private sector to share relevant data. I find that businesses are not always willing to share relevant data, especially when they think that the data being collected gets too close to the financing of the business.

Representative from business community: Well, you can’t blame them too ‘tuff’. We live in a small country, and we must be careful how we share data, not to mention the implications for tax. I guess you have a point though. You seem to be squeezed from both sides … not enough funding from the business community and not sharing data. I still believe more can still be done. We have started the conversation, let’s hope it can be expanded and we can meet somewhere in the middle.

Context-specific research

Context-specific research refers to research that focuses on the unique characteristics, nuances and circumstances of a particular location, region, setting or situation. While context-specific research is expected to provide more in-depth and nuanced insights on issues specific to a country, the findings are not always generalisable to other country or contexts.

Notwithstanding this possible non-generalisable aspect of context-specific research, the business sector in Jamaica needs to be aware of the benefits. The hope is that having a better understanding could lead to more support being given to facilitate research that addresses issues that relevant to the Jamaican context.

A call for the support of context-specific research seeks neither diminish the need for that addresses issues outside of Jamaica nor to suggest that research not informed by data from Jamaica has no relevance to the Jamaican business sector. The proposition is that the business sector could be missing out on benefits that can be gained from giving more support for research that is informed by data from the Jamaican business sector.

There are several benefits to the business sector and the country from context-specific research, including facilitating real-world applications, in-depth analysis, tailored-solutions to local problems and increased relevance to the business sector.

The allotted space and word limit allow for the expansion on only two of the benefits that can be gained from research informed by data from the Jamaican context. The proposition is that the insights gained, based on the examples cited, might not have been possible in the absence this data.

Data from the Jamaican business sector provides the scope of having a deeper understanding of local phenomena and complex issues considered to be unique to the Jamaican context. Example: a finding from research on FOBs in Jamaica is that historically, when compared to other ethnic groups, many people of African ancestry do not start businesses with the objective of creating generational wealth.

Cross references with two historians and a sociologist attributed this attitude to business, in part, to the legacy of slavery and its attendant socialisation of the enslaved, versus the latitude allowed with indentured servants. Armed with this finding, I have, for the past 15 years, committed part of my lectures at UWI to encourage students to pursue a path of returning to their parents’ businesses to help in the growth and expansion of these businesses, with the objective of creating generational wealth.

For those whose parents do not own businesses, I have encouraged them to pursue a path of starting a family business, with one of the objectives of creating generational wealth.

If a fraction of these students should take on this challenge, this could lead to a long-term benefit to the country. This is supported by the finding that the revenue generated from FOBs in Jamaica was, up to 2004, estimated to be equivalent to 32 per cent of the country’s GDP.

Context-specific research provides a platform for a better interpretation of qualitative data, which lead to policy makers focusing on what matters, with respect to leading to positive changes. Example: a recent research paper done on corner shops in Jamaica by two lectures from UWI revealed that corner shops are more than just hubs of employment for people in particular communities.

One of the findings from this study is that corner shops form part of the critical mass of third places in the Jamaican landscape, like churches, libraries, public parks and the more recognised “up-town after-work hangouts”.

Third places refer to a concept coined by sociologist Ray Oldenburg, refer to public places outside the home (first place) and work (second place) where people gather or congregate to relax, make connections and build relationships.

Findings from the research revealed that many of these corner shops have been the hub where many community conflicts have been peacefully resolved and have provided a safe space for the amicable resolution of family and political conflicts.

One recommendation from the findings is that the government and the private sector should partner in coming up with strategies on ways engage these corner shops be used as hubs to nip community violence in the bud before it develops to the point where security personnel get involved, sometimes with fatal consequences.

Jamaican businesses can benefit from the findings of context-specific research. Accessing these benefits can be made easier if businesses step up to the plate to help in the funding of relevant research, along with the wiliness to share relevant data.

A quote from author Stephen King is a reminder that the quality of input usually determines the quality of the output: “You pay for what you get, you own what you pay for ... and sooner or later whatever you own comes back home to you”.

More anon!

Lawrence Nicholson, PhD, is a senior lecturer at the Mona School of Business & Management, University of the West Indies, author of Understanding the Caribbean Enterprise: Insights from MSMEs and Family-Owned Businesses and a former director of the RJRGLEANER Communications Group.lawrence.n.08@gmail.com