Enhancing Successor Preparedness: Succession Strategies Impacting Organizational Survival through Successors’ Self-Efficacy in Nigeria

Aim/Purpose/Background Many business organizations in Nigeria face the risk of failure due to their inadequate preparation of individuals to assume leadership following the CEO’s exit. As such, the survivability challenge may arise partly from the lack of comprehensive training and development of successors. Given this, the study aimed to examine the impact of selected succession strategies (i.e., successor involvement in management, mentoring, and leadership training) on organizational survival by accounting for the mediation of self-efficacy. Methodology This study adopted a cross-sectional research design by surveying SMEs in Nigeria with a well-structured questionnaire. We randomly collected data from 315 family-owned businesses in Lagos State and tested them using the partial least squares analytical protocols. Contribution This study adopted a quantitative approach to determine how successor involvement in management, mentoring, and leadership training affects organizational survival in an integrated research framework. Findings The study found that successor involvement in management and mentoring significantly impacted organizational survival; however, leadership training’s effect was insignificant. Furthermore, self-efficacy significantly and partially mediated the relationships among the three succession strategies and organizational survival. Recommendations for Practitioners The study recommends that firms should consider the three strategic approaches (i.e., successor involvement in management, mentoring, and leadership training) in succession planning, as they contribute to increasing self-efficacy and organizational survival. It is essential to elicit feedback periodically to determine the effectiveness of these strategies. Second, given the centrality of self-efficacy in the strategy-survival link, firms should link these strategies, which have varied effects on organizational survival, to self-efficacy development. Recommendations for Researchers To develop a more comprehensive model that organizations can use, researchers should examine alternative strategies that may be useful for maintaining consistent performance. Impact on Society A productive society is characterized by resilient business organizations that can significantly contribute to various economic parameters, even in the face of changes and challenges. This study plays a crucial role in fostering sustainable organizations by focusing on the preparedness of successors. Future Research It would be beneficial to expand this research geographically to improve the generalization of results. Second, other studies could test alternative succession strategies, given that the involvement of successors in management, mentoring, and leadership training moderately accounted for variations in organizational survival. Third, this study only examined the mediating role of self-efficacy; research has shown that there are other related psychological constructs (e.g., resilience, hope, and trust) of comparative value to sustaining businesses.