Succession Management and Organizational Performance of Family Businesses in Mombasa County, Kenya

Family businesses contribute significantly to employment, wealth creation and economic development, yet many face continuity and performance challenges where succession is informal, poorly communicated or inadequately integrated with ownership transition, family interests and organizational culture. This study investigated the influence of strategic succession management on the organizational performance of selected family businesses in Mombasa County, Kenya. Specifically, it examined succession planning, ownership transition, socio-emotional wealth (SEW) and organizational culture. A descriptive survey design was used. Structured questionnaires were administered to 63 employees and managers, of which 60 were returned, representing a 95% response rate. The constructs demonstrated acceptable internal consistency, with Cronbach’s alpha coefficients ranging from 0.750 to 0.904. Data were analysed using descriptive statistics and multiple regression in SPSS. Succession planning (B = 0.444, p < .001), ownership transition (B = 0.101, p = .021), socio-emotional wealth (B = 0.612, p = .001) and organizational culture (B = 0.104, p = .004) were positive and statistically significant predictors of organizational performance. The reported overall regression model was statistically significant (F = 32.048, p < .001). The study concludes that succession should be managed as an ongoing strategic process rather than a one-time leadership event. It recommends formal and regularly reviewed succession plans, transparent and legally compliant ownership-transition structures, merit-based leadership development, preservation of constructive family values, and deliberate knowledge-sharing, mentorship and capacity-building practices.

Strategic succession management; succession planning; socio-emotional wealth; organizational performance; family businesses.

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