Influence of succession planning management practices on performance of medium sized family owned businesses in Kenya - a case of Nairobi county

Abstract

The study was an investigation into the influence of succession planning management practices on performance of medium sized family owned businesses in Nairobi County. This is due to the fact that according to statistics and research, few businesses survive beyond the second generation. The study adopted a descriptive survey design. The target population for the study was 72 businesses in Nairobi Central Business District that are family owned. The study selected 72 respondents who were served with the questionnaire. The study collected primary data through semi structured questionnaire. Tables and other graphical presentations as appropriate were used to present the data collected for ease of understanding and analysis. From the study found that role clarification of predecessor affects performance of medium sized family owned businesses in Nairobi County to a very great extent, the study concludes that role clarification of predecessor affects performance of medium sized family owned businesses in Nairobi County to a very great extent. The study found that succession autonomy affects performance of medium sized family owned businesses in Nairobi County to a great extent. It was found that succession communication affects performance of medium sized family owned businesses in Nairobi County to a very great extent. The study found that succession justice affects performance of medium sized family owned businesses in Nairobi County. The study found that challenges facing succession planning management in family owned businesses were lack of formal policies, lack of business, management skills among the successors, lack of competency among business leaders, untimely inauguration of family members into business process, lack of talents management processes and financial factors. The study recommends that there is need for the management of family owned business to clearly stipulate the role of predecessor. There is need for the management of family owned business to ensure autonomy of the predecessor. There is need to address the challenges facing succession planning management in family owned businesses.