SUCCESSION PLANNING AND ORGANIZATIONAL CONTINUITY IN FAMILY-OWNED BUSINESSES:” THE EXPERIENCE OF SETRACO NIGERIA LTD”

This study investigates the impact of succession planning on organizational continuity in family-owned businesses, with Setraco Nigeria Ltd serving as the case study. Succession planning is vital for ensuring smooth leadership transitions and sustaining the long-term viability of family enterprises. Many family-owned businesses in Nigeria face challenges related to generational change, lack of formal planning, and leadership conflicts, which often threaten their survival beyond the founding generation.

The objective of this study is to examine how structured succession planning influences the stability, performance, and sustainability of Setraco Nigeria Ltd. A descriptive survey research design was adopted. Data were collected through structured questionnaires and semi-structured interviews. The analysis was conducted using SPSS, with descriptive statistics summarizing the data and Pearson correlation and regression analysis used to test the relationship between succession planning (independent variable) and organizational continuity (dependent variable).

The findings indicate a significant positive relationship between succession planning and organizational continuity. The study reveals that when succession is approached proactively through leadership development, structured mentorship, and clear communication, the organization experiences less disruption and maintains performance across generations. However, some challenges were noted, including emotional biases in selecting successors, resistance to external leadership, and lack of formal succession policies.

In conclusion, the study affirms that effective succession planning is essential for sustaining family-owned businesses like Setraco Nigeria Ltd. It ensures leadership stability, preserves institutional knowledge, and enhances long-term competitiveness. The study recommends that Setraco and similar family enterprises develop and implement formal succession frameworks, invest in leadership training, and strike a balance between family involvement and professional management. This will help ensure seamless transitions and business continuity in the face of leadership change.