Impact of leadership styles on succession planning in small and medium enterprises in Lagos State, Nigeria
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Date
2016-08-19
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Faculty of Management Sciences, Usman Danfodio University, Sokoto, Nigeria.
Abstract
Nigeria's economy is dominated by Small and Medium Enterprises (SMEs) in Agriculture. Manufacturing, Commerce, Industry and Services. Despite the active involvements by SMEs in Nigeria economy high mortality rate among established SMEs is a matter of major concern. The main purpose of the study is to determine impact of leadership styles on succession planning of selected SMEs in Lagos state, Nigeria. The study specifically determined the impact of Transformational Leadership and Transactional Leadership on Succession Planning in SMEs. This study adopted an explanatory research design. The population of the study was 11.663 registered SMEs in Lagos state and Yamane formula was used to determine the sample size of 387.The study employed primary source of data collection and the respondents were the business owners and managers of the company. Single Regression analysis was used to test the formulated hypotheses. The study comes out with the following findings: (R=0.806, R=0.649, (0.000) <0.5) this Indicates that the model as fitted explains 64.9% of the variability in succession planning and (R=0.778, R=0.605, P (0.000) <0.5). This implies that 60.5% variation in the dependent variable (succession planning) is explained by the independent variables used in the model. The study concludes that transformational and transactional leadership are major and significant determinants of succession planning in SMEs. It is therefore important for organizations to build a culture of strong leadership whereby employees show effective leadership at all levels and leaders should teach and mentor their followers and show faith in their capabilities to succeed.
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Keywords
Leadership Styles, Succession Planning, Small and Medium Enterprises
Citation
Aremu, N.S. &Jimoh, A.L. (2016). Impact of leadership styles on succession planning in small and medium enterprises in Lagos State, Nigeria. Journal of Management Studies. 11, (2); 176-193. Published by Faculty of Management Sciences, Usman Danfodio University, Sokoto, Nigeria.