Topic
Impact of Succession Management on Business Continuity: A Case of Family-Owned Businesses in Agbor, Delta State
Original Research
Authors
Uzozie, Henrietta Chinasa and Okoejegbu, Bernard
Pages : 59 - 81
Abstract
This study focuses on the effect of succession planning on business continuity of family-owned businesses in Agbor, Delta State. The specific objectives were to: determine the extent of the relationship between mentoring and employees’ productivity; ascertain the effect delegation has on product innovation; and assess the extent to which career development affects growth. The study adopted the survey design. The study population comprised family-owned businesses in Agbor, Delta State. A sample size of three hundred and forty-three (343) was calculated using the Freund and Williams statistical formula. The questionnaire was the primary instrument for data collection. Validity of the instrument was carried out using content validity; and reliability test shows consistency at 0.8 Cronbach’s alpha levels. Data were analyzed using Correlation Analysis and Regression Analysis at 5% level of significance. Based on the findings, the study showed that there is no significant relationship between mentoring employees’ productivity of family-owned businesses in Agbor, Delta State; delegation has significant effect of innovation of family-owned businesses in Agbor, Delta State; career development has significant effect on organizational growth of family-owned businesses in Agbor, Delta State. The study concluded that effective succession management is critical to ensuring a smooth transition of leadership from one generation to another which could lead to enhanced organizational stability, growth, and innovation. The study recommended that: owners of family-owned businesses should establish a formal succession plan that outlines the process and criteria for identifying and developing potential successors.