Abstract:

One of the problems faced by small and medium businesses in Nigeria and others globally has been planned succession by way of purposeful transfer of operational, management and ownership controls to the next generation from the proprietors. At the same time, there is a growing chorus on the neccessity for older professionals to develop, groom and integrate the younger professionals into additional responsibilities to increasingly take over the business practices to ensure continuity. Current dynamics in the business environment also demand that organizations attract, retain and internally develop potential partners/talent as key to the organization’s future success. Yet, notwithstanding the decision for generational transfer of leadership and therefore the market dynamics, succession management has for the most part remained on the back burners. This study was however undertaken to fill the research gap that exists by elucidating the influence of executive succession planning on sustainability of Small and Medium Enterprises (SMEs) in Lagos, Nigeria. The study adopted a survey design with a population of study limited to small and medium businesses in Lagos state Nigeria, that are licensed by the Small and Medium Scale Enterprises Development Association of Nigeria (SMEDAN). A stratified sampling technique was used to select the businesses, from where a random sample of 40 was selected. Descriptive statistical tool and Pearson’s Product Moment Correlation were used to analyze the data. The research reveals that the implementation of succession planning processes by SMEs influences firm sustainability. Likewise, there is a moderating effect of both internal talent mobility and stakeholder engagement on the relationship between succession planning and firm sustainability. The study therefore concludes that succession planning implementation, internal talent mobility and stakeholder engagement are some of the key determinants of business sustainability in small and medium enterprises therefore, there is the urgent need for organizations to establish effective succession planning capable of building a pool of talents from within while actively engaging all of its stakeholders.

Keywords: Executive, Succession Planning, Small and Medium Enterprises, Sustainability.

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