Analysis of factors affecting succession management of family-owned enterprises in Nairobi County
Date
2016
Authors
Gitiche, Paul Mwangi
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Succession Management is an important event in the life of a family enterprise. The
strategies employed in the succession have been observed to have a significant
influence on the survival and performance of family businesses. Against the
background of minimal research on family-owned business succession in Kenya,
coupled by the important position the family enterprise holds in the economy, this
study aimed at determining factors affecting succession management in family-owned
enterprises within Nairobi County. The study was guided by the following variables;
founder leadership style, mentorship programs and successor attributes. A descriptive
research design was used in the study. The population of interest was based on the
number of family-owned businesses operating in Nairobi County. A quota sampling
method was used to select samples for the study. Based on a confidence level of 95%,
a representative sample size of family-owned enterprises operating in the County was
determined. Structured questionnaires were used to collect the relevant data for the
study. Descriptive survey designs were used in the study. The data analysis was both
quantitative and qualitative. This study informed best practices in family enterprise
succession to ensure smooth transition in management of family-owned businesses. In
the analysis of the founder’s leadership style influence on succession management,
over 73% of respondents believed that it does to a great extent. 78% of the
respondents indicated that successor to their respective organizations had been
proposed and most of them viewed the successor attributes as an important factor
influencing succession management in family-owned enterprises in Nairobi County.
Family-owned business should enhance professionalism in the running of family
businesses. Also, providing training for those in leadership positions including the
founders, on the value and necessity of succession management would increase the
likelihood of a stronger commitment to succession process.
Description
Submitted in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration
Keywords
Family business, Business, Succession, Management, Nairobi County, Succession Management