Governance in small Pacific businesses: Tongan business cases

Abstract

In the last thirty years the expansion of commerce in the South Pacific has attracted greater participation by those indigenous to the Pacific Islands. This growth in participation introduces the need to better understand and guide this new group of entrepreneurs and businesses. This greater level of participation is not only apparent in the small Islands nations of the South Pacific but also in countries including New Zealand and Australia where Pacific populations are growing at a faster rate compared to the general population. Organisational structures, governance and management responsibilities are fluid and evolving, particularly in the case of small to medium size enterprises. This paper investigates the organisational structures, governance practices, management styles and succession planning carried out within Tongan businesses in New Zealand. The paper discusses these issues in the context of how they contribute to business growth and sustainability. The findings support the challenges and issues discussed in the extant literature for family businesses, and suggest Tongan culture influences the growth and sustainability of Tongan business both positively and negatively.