Succession Management Operations of both Failed and Prospered Generational Transition Family Businesses in Anambra State - Nigeria
Author(s)
Uchenna Charles Onugu , Charles Chikwendu Okpala ,
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Abstract
Globally, family businesses are the fundamental form of entrepreneurship. However, despite the successes many of them achieve at the inception, only very few are able to survive and thrive up to the second generation. Although the founders of these businesses often hope to pass their enterprises to their offspring, in order to help them to maintain their legacies and also succeed economically, most times this does not happen, as the businesses often flounders whenever the founders retire or die. This paper examined the survival rate and succession management operations of both failed and prospered generational transition family businesses in Anambra State – Nigeria. With a sample size of 327, which was obtained from Taro Yamane formula, 109 questionnaire was administered to Directors and Managers in each of the three main cities in the state. The application of scientific method of validation after the modifications at 95 percent and 5 percent confidence level and significance level respectively, using the Kaiser-Meyer-Olkin gave a good sampling adequacy of 0.857. The findings of the research revealed that only 27.2 percent of family businesses in Anambra state survived and prospered after generational transition. Also, the results showed that there are remarkable differences in nearly all succession management operations of the both the failed and prospered generational transition family businesses in the state. The details of regression analysis result of the hypothesis validated the results of the research as indicated by the correlation coefficient (R = .948). It is also shown from the coefficient of determination (R – square = .962) that a 96 percent differences exist in the succession management operations of both the failed and prospered generational transition family businesses in Anambra state.
Keywords
family businesses, Anambra state, generational transition, succession plan, succession management operations, analysis of variance, regression analysis
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