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Inter-Generational Succession Planning in Zimbabwe’s Indigenous Family Businesses. A Case Study of The Challenges and Critical Issues For Consideration

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  • Gregory Shumbambiri

    (Graduate School of Business, Bindura University of Science Education, Zimbabwe)

Abstract

Most indigenous family businesses in Zimbabwe are not able to continue operating after the founding owners pass away. Notwithstanding the government’s investment in education and technology, the complexity of family business succession is unabatedly escalating in Zimbabwe. This mixed method empirical study sought to evaluate inter-generational succession planning in Zimbabwe’s indigenous family businesses. The study employed the mixed-method research design and adopted the pragmatism research philosophy, with the case study research strategy being adopted. Underpinned with succession planning theory, the study sought to unravel the nature and extent of strategic succession planning; establishing the challenges and critical issues for consideration in family-owned businesses in Zimbabwe. The focus was on family-owned businesses in Harare Metropolitan Province with the population for the study comprising owners, managers and employees of the family businesses within Harare. A combination of non-probability and probability sampling methods were used specifically stratified random sampling and purposive sampling . For the interviews, the owners and directors from each company were selected whilst a total of 72 questionnaires were distributed. From the interviews, all the targeted 15 participants participated. Data for the study was collected using questionnaires and interviews. Quantitative data was analysed using SPSS version 16 whilst qualitative data was categorised and analysed according to themes using NVivo. The findings of the study revealed that most of the family-owned businesses in Zimbabwe do not have formal strategic succession planning policies due to unwillingness to choose successors, ignorance and family related tensions. The findings also showed that family differences which came out due to difficulty in giving up control, gender biases and conflicts over leadership roles were common amongst the family businesses. Lack of communication together with the lack of succession planning policies were some of the key issues noted. It was also revealed that succession planning greatly influences sustainable organizational growth of family-owned businesses. The correlation results revealed a significant strong positive link between succession planning and sustainable organisational growth.

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  • Gregory Shumbambiri, 2023. "Inter-Generational Succession Planning in Zimbabwe’s Indigenous Family Businesses. A Case Study of The Challenges and Critical Issues For Consideration," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 1400-1416, February.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:2:p:1400-1416
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    References listed on IDEAS

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