SUCCESSION PLANNING PRACTICES AND PERFORMANCE OF FAMILY-OWNED BUSINESSES IN SOUTHWEST, NIGERIA.

Abstract

This study looked at how succession planning affected Southwest Nigerian family-owned firms’ performance. Respondents from all states self-administered a 5-point Likert scale questionnaire as part of the study’s descriptive survey approach. Using the Taro Yamane (1967) formula, a sample of 390 family-owned firms was selected from the total population size of 15,771 family-owned businesses. The study sample was chosen using a multi-stage sampling procedure. Simple Linear Regression was used to test the hypotheses, and descriptive statistics such as frequency and percentage tables were used to describe the demographic data of the respondents. With coefficient and probability values of β=0.296 and p=0.049<0.05 for internal communication, β=1.528 and p=0.000<0.05 for training, and β=0.442 and p=0.000<0.05 for mentorship, the study discovered a positive and significant effect of all three succession planning variables on the performance of family-owned businesses. According to the study’s findings, succession planning significantly improves family-owned businesses’ performance in Southwest Nigeria.