EFFECT OF SUCCESSION MANAGEMENT PRACTICES ON FIRMS’ GROWTH: STUDY OF AVIPRENEURSHIP SMES IN OGUN STATE, NIGERIA
Abstract
A vibrant small and medium enterprise (SMEs) occupies a crucial position in any nation’s economy because it drives other sector. All organisations have one thing in common; at a certain stage, they must deal with shifts in leadership, politics, decision-making, power and strategies for improvement. Organisations with clearly developed succession management practices are the most successful in this transition, regardless of the industry, business model or type of ownership. However, in spite of various indications on how Avipreneurship SMEs has contributed immensely to Nigeria GDP, large number of Avipreneurship SMEs goes into extinction just the first few years after the death of the founder as a result of inability to put succession management practices in place. Thus, this study examines the effect of succession management practices measured by coaching, employees' career development, job rotation, recruitment policy, mentoring, on firms’ growth with reference to Aviprenurship SMEs in Ogun State Nigeria. This study adopted survey research design. The target population for the study is three hundred and fifty-three (353) registered poultry small and medium scale farms and each of the farms having two respondents; that is, owner and manager making a total of 706 respondents. The 353 are registered farms with poultry association Ogun State. A total of 632 questionnaires were returned representing 89.5% response rate. Total enumeration was adopted. A structured and validated questionnaire was used for data collection. The reliability test yielded Cronbach’s alpha for the constructs ranges from 0.728 to 0.954. The result revealed that recruitment policy (β = .175, t = 4.098, p<0.05), coaching (β = 0.152, t = 3.214, p<0.05), mentoring (β = .107, t = 2.348, p<0.05) and job rotation (β = .261, t = 6.107, p<0.05) all have a significant positive effect on firm growth. However, employees' career development (β = 0.040, t = 0.847, p>0.05) have a positive but non-significant effect on firm growth in Avipreneurship SMEs in Ogun State, Nigeria. Findings revealed further that Succession management practices have significant effect on firms’ growth of selected Avipreneurship SMEs in Ogun State, Nigeria (Adj.R2= 0.348, F(5, 626) = 68.310, p<0.05). The study concluded that succession management practices affected firms’ growth of Avipreneurship SMEs in Ogun State, Nigeria. The study recommended that the farm owners and managers of Avipreneurship SMEs in Ogun State should develop strategy to connect succession management practices dimensions in order to make the sector sustainable and enviable in the long run. Such a strategy would be the premise on actions adopted by the various farms in matters pertaining to food productions.
Keywords: Firm Growth, Avipreneurship, Small and Medium Enterprises, Succession Management Practices
CITATION: Olusanya, N. O., Makinde O. G., & Akpa V. O. (2025). Effect of succession management practices on firms’ growth: study of Avipreneurship SMEs in Ogun State, Nigeria. The Strategic Journal of Business & Change Management, 12 (2), 405 – 417. http://dx.doi.org/10.61426/sjbcm.v12i2.3219
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3219
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