This type of succession entails hiring external candidates or outsiders to occupy leadership position in the organization, possibly in the absence of capable insiders with the right managerial and professional competencies to occupy the leadership positions.
Published in Chapter:
Re-Envisioning Formal and Informal Family Businesses in Nigeria: The Evolution, Opportunities, Succession Model, and Sustainability Challenges
Lukman Raimi (American University of Nigeria, Nigeria)
Copyright: © 2020
|Pages: 19
DOI: 10.4018/978-1-7998-3648-3.ch011
Abstract
This chapter discusses the evolution, opportunities, succession model, and sustainability challenges of formal and informal family businesses in Nigeria. Using qualitative research method, while relying on content analysed secondary data, the chapter found that the family businesses that evolved in Nigeria laid the foundation for socio-economic development, and they contributed immensely to employment generation, stimulation of indigenous entrepreneurship, mobilization of idle savings, and growth of gross domestic product. Family businesses in Nigeria prefer relay succession planning for transferring control to family members. The major sustainability challenges include poor succession planning, harsh macro-economic environment, conflict of interest, emotional family problems, parochial family vision, absence of mentoring, competition from multinational corporation, poor access to funding, inadequate entrepreneurial knowledge, weak financial management, bad governance, and a host of others. The chapter concludes with research implications, limitations, and suggestions for further research.