Pauline D

Abstract

The aim of this study was to determine the effect of succession planning on the performance of the family-owned business Kingsway Tyres Company. The study was directed by the resource-based view and human capital theory. The study adopted a case study design and data was collected among eight managing directors who are also shareholders at Kingsway Tyres Company using the interview method. The study found that the company has adopted succession planning and this has contributed to its long-term success. The analysis also confirmed that the firm has adopted a well-structured succession planning model and this has helped it to identify and nurture future leaders within the organization, ensuring a smooth transition when key positions become vacant. The firm’s implementation of succession planning positively influenced its overall performance and stability. It allowed the organization to harness the strengths and potential of its employees, who also include family members, resulting in improved operational efficiency, higher employee engagement, and ultimately, enhanced financial performance. The findings emphasized the importance of aligning succession planning with the company's strategic objectives. It was noted that when succession planning is integrated with the broader organizational strategy, it not only identifies successors but also equips them with the necessary expertise to meet the company's goals. The study noted that an effective succession planning process at Kingsway Tyres Company had a good impact on performance, providing a roadmap for sustained success in the ever-changing business landscape. The study recommended the need for family-owned companies to adopt succession planning, especially nurturing their young leaders to promote their success. This is imperative for the overall success and performance of the firms. In addition, the study called upon policy makers and the government to provide tax incentives and grants for training and development programs for employees and owners of family-owned businesses.