Succession Strategy and Performance of Selected Micro Family Firms in Lagos State, Nigeria

Abdul-Hameed Adeola SULAIMON; Taofeek Olalekan GBADAMOSI; Christopher Idemudia EBEGBETALE; Oladimeji Charles FAJIMOLU; Chinenye Anthonia ONYEMAOBI

Abdul-Hameed Adeola SULAIMON Department of Business Administration, University of Lagos, Lagos Nigeria
Taofeek Olalekan GBADAMOSI Department of Business Administration, University of Lagos, Lagos Nigeria
Christopher Idemudia EBEGBETALE Department of Business Administration, University of Lagos, Lagos Nigeria
Oladimeji Charles FAJIMOLU Department of Business Administration, University of Lagos, Lagos Nigeria
Chinenye Anthonia ONYEMAOBI Department of Business Administration, University of Lagos, Lagos Nigeria

Keywords: Family-owned Businesses, Management Training, Mentorship, Performance, Succession Strategy

Abstract

Micro family businesses are very important to the Nigerian economy, as they foster innovation, employment, and economic expansion. Ensuring the long-term viability and continuity of family-owned businesses is still a difficult task, though. With a focus on management training and mentorship for successors, this study examined how succession planning impacts the performance of selected micro family businesses in Lagos State, Nigeria. Data were gathered from 384 owner-managers of family-owned businesses in Lagos State through the use of a cross-sectional survey research design. A multistage sampling strategy was used in the study to guarantee a representative sample. To determine how the independent variables impacted the dependent variables, the gathered data were subjected to descriptive and inferential statistical analysis using SPSS version 25 software. The findings showed that management training and mentoring have independent and joint effects on the performance of selected micro family enterprises in Lagos State. Accordingly, the study concluded that the performance of micro family businesses in Lagos State is significantly shaped by succession planning. It was suggested that in order to improve their performance, micro family businesses should implement a successful mentoring program and train their successors to assume leadership roles in the future.