The Place of Culture in Succession Management of Family-Owned Businesses

Abstract

This study identified the relationship between culture and succession management in Anambra State's Family-Owned Businesses (FOBs). The study used a population of 2370 FOBs in three areas of the state and a survey research approach. The sample size of 330 was determined using the formula developed by Krejcie and Morgan, 1970. A structured questionnaire used as the data collecting tool was examined to make sure it was both valid and reliable using split-half reliability, face and content validity respectively. Descriptive and inferential statistics were employed for data analysis at 5% level of significance; hypotheses were tested using simple linear regression. The findings revealed a statistically significant relationship between inheritance culture and coaching in family-owned businesses in Anambra State (R =.954; R2.910; F Statistics = 2996.475; P-value .05) but no statistically significant succession plans in family-owned businesses in Anambra State (Chi-Square = 162.709; DF = 16, Phi =.130; P-value >.05). Thus, it was concluded that culture and succession planning among FOBs in the state of Anambra has a statistically significant association. In light of this, it was suggested that although the region's inheritance culture may be patriarchal, efforts should be made to ensure that female children are also taken into account when taking over businesses. It was also suggested that the government and other agencies educate the populace extensively about formal succession because doing so will help them understand it and put it into practice, preventing FOBs from passing away with their owners.

Keywords: Culture, Succession management, Inheritance Culture, Coaching, Family-owned businesses.