Succession Planning as A Panacea to SMEs, Becoming A Generational Enterprise in Nigeria: The Moderating Role of Organizational Culture
Abstract
Succession planning is the process of transferring control from owners to the successor in an organization. Small and Medium Enterprise sectors that are seen to be major contributors to job creation and Gross Domestic Products are bedeviled with the lack of succession planning on the death/retirement of the owner. Small and Medium Enterprises Development Association of Nigeria report in 2017 indicated that over 2.783m SMEs were temporarily closed down due to the death/sickness of the owners. This figure threatens the sustainability, future performance and ability to have a generational enterprise in the sector. Therefore, the study examines the effect of succession planning on SMEs performance. The study employed a survey research design and multi-stage sampling technique to select a sample size of 207 SME registered members with National Association of Small and Medium Enterprise in Lagos State. Consequently, only 185questionnaires were duly completed and returned. Descriptive statistics was used to analyse collected data. Pearson Product Moment Correlation Coefficient was used to determine the relationship between talent and reward management variables and SME performance. Multiple Regression analysis was used to evaluate the significant effect among training and development variables and the moderating effect of organisational culture on the relationship between succession planning and SME performance. The study concludes that succession planning is determined by talent management, reward management and training and development, and exert significant effect on SMEs performance. It is recommended that SME owners formulate and implement policies for effective succession planning, enhanced performance and sustainable economic development.
Citations
IRE Journals:
Dr. Salau Adeyemi Nurudeen
"Succession Planning as A Panacea to SMEs, Becoming A Generational Enterprise in Nigeria: The Moderating Role of Organizational Culture" Iconic Research And Engineering Journals Volume 5 Issue 9 2022 Page 27-45
IEEE:
Dr. Salau Adeyemi Nurudeen
"Succession Planning as A Panacea to SMEs, Becoming A Generational Enterprise in Nigeria: The Moderating Role of Organizational Culture" Iconic Research And Engineering Journals, 5(9)
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