Effect of Succession Planning on the Sustainability of Family Owned Businesses Evidence From Plateau State, Nigeria

The study examines the impact of succession planning (SP) on the sustainability of family-owned businesses (FOBs) within Plateau State, Nigeria. A quantitative research methodology was employed utilizing a survey design. Data were gathered from 293 FOBs in Plateau State through structured questionnaires. Multiple regression analysis was used to examine the variables and validate the hypotheses. The findings indicated that the engagement of successors in business management (β = .378, t = 2.081, p = 0.038), the training of successors (β = .378, t = 3.520, p = 0.001), and organizational culture (β = .367, t = 3.813, p = 0.000) exhibit a positive association with the sustainability of FOBs. Conversely, internal recruitment (β = .024, t = .213, p = .813) and the successor's work fit (β = - .089, t = - 801, p = .424) do not show a significant positive relationship with the sustainability of FOBs. This research contributes to the existing body of literature by providing empirical evidence regarding the efficacy of succession planning in promoting the sustainability of FOBs in Nigeria through the frameworks of generational theory and socio-emotional wealth theories. The results substantiate the generational theory's assertion that family enterprises prioritize legacy and continuity across generations. Additionally, the socio-emotional wealth theory is supported, as FOBs value non-economic aims, encompassing family harmony and the integrity of their business reputation.