IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v11y2019i3p84-96.html
   My bibliography  Save this article

Evaluation of Owners’ Characteristics and Succession Practice among Small and Medium Size Manufacturing Enterprises in Ekiti State, Nigeria

Author

Listed:
  • Ezekiel Jide Fayomi
  • Ziska Fields
  • Kayode Kingsley Arogundade
  • Olusegun Matthew Awotunde
  • Christianah Olubunmi Ijamusan
  • Temitope Teniola Onileowo

Abstract

This study evaluated owners’ characteristics and succession practice among manufacturing Small and Medium Enterprises (SMEs) in Ekiti State, Nigeria. It assessed the correlation between achieved characteristics (educational level and experience) of owners of manufacturing enterprises and choice of succession practice; and the extent to which owners’ situational characteristics (health, spouse, children’s readiness) influenced the choice of succession practice. The study employed descriptive design and the population comprised of 136 founders and succeeding owners of registered manufacturing SMEs in Ekiti State. To obtain a sample of 100 participants, stratified sampling techniques were used and Descriptive statistics were also used to profile the respondent’s demography. Pearson Product Moment Correlation (PPMC) was employed to determine the association between the demographic and achieved characteristics of owners and succession practice. While multiple regressions were used to analyze learnable and situational characteristics and succession practice the study’s findings revealed that owners’ characteristics, expressed as: demographic characteristics, being female (r=0.315, p=0.012); achieved characteristics, higher education (r=0.300. p=0.017) and average experience (r=0.272, p=0.031); learnable characteristics, need for achievement (β=0.334, p=0.007) and leadership (β=0.288,p=0.035); and situational characteristics of wife (β=-0.256,p=0.04) and children (β=0.284, p=0.018), were significant variables that influenced succession practice among SMEs’ owners. It concluded that practice and belief in succession practices among SMEs owners is strongly influenced by education, experience, and the desire to leave a legacy. Recommendations include that government should encourage graduates to establish SMEs and managers should strive for organized and dependable families and train their children, to ensure successful succession.

Suggested Citation

  • Ezekiel Jide Fayomi & Ziska Fields & Kayode Kingsley Arogundade & Olusegun Matthew Awotunde & Christianah Olubunmi Ijamusan & Temitope Teniola Onileowo, 2019. "Evaluation of Owners’ Characteristics and Succession Practice among Small and Medium Size Manufacturing Enterprises in Ekiti State, Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 11(3), pages 84-96.
    • Handle: RePEc:rnd:arjebs:v:11:y:2019:i:3:p:84-96
    DOI: 10.22610/jebs.v11i3(J).2871
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/2871/1860
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/2871
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v11i3(J).2871?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ralph Palliam & Hanas A. Cader & Charles Chiemeke, 2011. "Succession Issues among Family Entrepreneursin Countries of the Gulf," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(2), pages 25-34, May.
    2. E.O. Ofoegbu & P.A. Akanbi & A.I. Joseph, 2013. "Effects of contextual factors on the performance of small and medium scale enterprises in Nigeria: A Case Study of Ilorin Metropolis," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 3(1), pages 1-8.
    3. P. Everaert & G. Sarens & J. Rommel, 2006. "Sourcing of Accounting: Evidence from Belgian SMEs," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/403, Ghent University, Faculty of Economics and Business Administration.
    4. Degryse, Hans & Matthews, Kent & Zhao, Tianshu, 2018. "SMEs and access to bank credit: Evidence on the regional propagation of the financial crisis in the UK," Journal of Financial Stability, Elsevier, vol. 38(C), pages 53-70.
    5. Verdolini, Elena & Bak, Céline & Ruet, Joël & Venkatachalam, Anbumozhi, 2018. "Innovative green-technology SMEs as an opportunity to promote financial de-risking," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-13.
    6. Marc Cowling & Weixi Liu & Ning Zhang, 2018. "Did firm age, experience, and access to finance count? SME performance after the global financial crisis," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 77-100, January.
    7. Dawn DeTienne & Melissa Cardon, 2012. "Impact of founder experience on exit intentions," Small Business Economics, Springer, vol. 38(4), pages 351-374, May.
    8. M. Scholes & Mike Wright & Paul Westhead & Andrew Burrows & Hans Bruining, 2007. "Information Sharing, Price Negotiation and Management Buy-outs of Private Family-owned Firms," Small Business Economics, Springer, vol. 29(3), pages 329-349, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen, Pascal & Rahman, Nahid & Zhao, Ruoyun, 2013. "Ownership structure and divestiture decisions: Evidence from Australian firms," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 170-181.
    2. Eggers, Fabian, 2020. "Masters of disasters? Challenges and opportunities for SMEs in times of crisis," Journal of Business Research, Elsevier, vol. 116(C), pages 199-208.
    3. Dehlen, Tobias & Zellweger, Thomas & Kammerlander, Nadine & Halter, Frank, 2014. "The role of information asymmetry in the choice of entrepreneurial exit routes," Journal of Business Venturing, Elsevier, vol. 29(2), pages 193-209.
    4. Florian Kreer & René Mauer & Steffen Strese & Malte Brettel, 2018. "On private equity exits of family firms in the German Mittelstand," Journal of Business Economics, Springer, vol. 88(3), pages 503-529, May.
    5. Mattias Nordqvist & Karl Wennberg & Massimo Bau’ & Karin Hellerstedt, 2013. "An entrepreneurial process perspective on succession in family firms," Small Business Economics, Springer, vol. 40(4), pages 1087-1122, May.
    6. Daniel Fackler & Claus Schnabel & Joachim Wagner, 2013. "Establishment exits in Germany: the role of size and age," Small Business Economics, Springer, vol. 41(3), pages 683-700, October.
    7. Halil Dincer Kaya, 2023. "The Impact Of The 2008-2009 Global Crisis On Retailers’ And Core Industry Firms’ Loan Applications," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 16-24, February.
    8. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    9. Guidolin, Massimo & Pedio, Manuela, 2017. "Identifying and measuring the contagion channels at work in the European financial crises," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 48(C), pages 117-134.
    10. Pilar López-Delgado & Julio Diéguez-Soto & María J. Martínez-Romero & Teresa Mariño-Garrido, 2024. "Acquisition activity: do firm age and family control matter?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(2), pages 447-473, June.
    11. Yeh, Jen-Yin & Chiu, Hsin-Yu & Huang, Jhih-Huei, 2024. "Predicting failure of P2P lending platforms through machine learning: The case in China," Finance Research Letters, Elsevier, vol. 59(C).
    12. Yang Yang & Xuezheng Chen & Jing Gu & Hamido Fujita, 2019. "Alleviating Financing Constraints of SMEs through Supply Chain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    13. Tiago Botelho & Richard Harrison & Colin Mason, 2021. "Business angel exits: a theory of planned behaviour perspective," Small Business Economics, Springer, vol. 57(1), pages 583-602, June.
    14. Emma Galli & Danilo V. Mascia & Stefania P. S. Rossi, 2020. "Bank credit constraints for women‐led SMEs: Self‐restraint or lender bias?," European Financial Management, European Financial Management Association, vol. 26(4), pages 1147-1188, September.
    15. Strese, Steffen & Gebhard, Philipp & Feierabend, David & Brettel, Malte, 2018. "Entrepreneurs' perceived exit performance: Conceptualization and scale development," Journal of Business Venturing, Elsevier, vol. 33(3), pages 351-370.
    16. Jill Juergensen & José Guimón & Rajneesh Narula, 2020. "European SMEs amidst the COVID-19 crisis: assessing impact and policy responses," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 499-510, September.
    17. Patrick Gregori & Zulaicha Parastuty, 2021. "Investigating the process of entrepreneurial team member exits: a systematic review and future research directions," Review of Managerial Science, Springer, vol. 15(4), pages 847-878, May.
    18. Kevin Amess & Mike Wright, 2012. "Leveraged buyouts, private equity and jobs," Small Business Economics, Springer, vol. 38(4), pages 419-430, May.
    19. Khelil, Nabil, 2016. "The many faces of entrepreneurial failure: Insights from an empirical taxonomy," Journal of Business Venturing, Elsevier, vol. 31(1), pages 72-94.
    20. Cirillo, Alessandro & Romano, Mauro & Pennacchio, Luca, 2015. "All the power in two hands: The role of CEOs in family IPOs," European Management Journal, Elsevier, vol. 33(5), pages 392-406.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:11:y:2019:i:3:p:84-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.