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It remains unclear how lack of management succession planning relates to the collapse of 87% of the Tanzanian family-owned manufacturing businesses (FOMBs) after the first generation.  Also, the question of whether a firm’s background variables, namely; executive’s education level, business age, and business size, moderate the relationship between management succession planning and the survival of FOMBs remains unanswered. Therefore, this study investigated the relationship between succession planning and the survival of FOMBs, moderated by the firm’s background variables through the lens of resource-based theory as well as agency theory. A sample of 339 executives was randomly drawn from the FOMBs in Dar es Salaam city where the collapse of FOMBs after the first generation was revealed to be significant and surveyed using a structured questionnaire. Multiple linear regression was used as a quantitative data analysis technique with the support of SPSS as an analytical tool. Results revealed that management succession variables, namely; training the successor, successor involvement in business management and successor factors-work fit had a positive and significant relationship with the survival of FOMBs. However, the internal recruitment of the successor had an insignificant relationship with the survival of FOMBs. Therefore, management succession planning sustains the leadership pipeline and survival of the FOMBs through the involvement of the successor in business management, sufficiently training the successor, and handing over power to the successor whose competency and factors fit with the relevant work. The study contributes to an understanding of management succession planning variables and how they relate to the survival of family-owned manufacturing businesses. The study also provides a new conceptual framework on transgenerational management succession planning in the FOMBs.

The chance of survival of businesses in Rwanda is underprivileged and 82% of them close at an early stage, which negatively affects manufacturing companies, particularly Family-Owned Manufacturing Companies (FOMCs). Although there are other reasons why many FOMCs do not succeed in the next generation, a lack of pro-activeness has surfaced as a critical factor. Thus, the study aimed to assess the effect of pro-activeness on the survival of family-owned manufacturing companies in Kigali City, Rwanda. The study was conducted in Kigali City, from 2017 to 2023; Cochran’s formula was employed to determine a sample size of 384 senior employees picked at random from 77 FOMCs. This study employed Self-administered questionnaires and a quantitative approach. Multiple linear regression analysis was utilized to find out the relationship among variables. IBM (International Business Machines Corporation) SPSS (Software Package for Social Sciences) was employed to analyze data. The findings of this study indicated that pro-activeness had a substantial influence on the survival of family-owned manufacturing companies. The study offers a cogent explanation of the relationship between the longevity of family-owned manufacturing companies and pro-activeness. The study also offers important insights into the smooth and effective execution of pro-activeness for the survival and continuity of family-owned manufacturing enterprises. Moreover, the study findings indicated that combining pro-activeness and training the successors boost the productivity of family-owned companies and make them more competitive in the market, which leads to the long-term survival of FOMFs. The FOMFs that use pro-activeness in their operations survive longer than the ones without it.  

The purpose of this study was to assess factors affecting succession planning in family-owned fish trading SMEs businesses in Mwanza city. The research utilized quantitative methodologies to evaluate the effect of individual, familial, and organizational factors on succession planning within family-owned small and medium-sized enterprises (SMEs) in Mwanza city. Chi-square analyses revealed that leadership, delegation, the ability to disassociate from the business, and successor preferences significantly influence succession planning. Moreover, the interest and abilities of the successor plays a crucial role in the planning process. The study further found that family-level factors, including traditions, compensating family members, formal communication forums, and the desire to maintain family control, also significantly affect succession planning. Regression analyses indicated that individual factors such as leadership, delegation, and the abilities of potential successors positively influenced succession planning. At the family level, practices like compensating family members and establishing formal communication channels significantly contributed to succession planning, while traditional practices like favouring the eldest son as a successor did not have a substantial impact. Additionally, the study identified that the readiness of the successor, the presence of a clear and documented succession plan, effective board governance, a well-defined organizational structure, and the existence of a written strategic plan were key predictors of successful succession planning. The findings suggest that businesses with well-defined and specific succession plans, identified successors, and active development plans for the next generation are more likely to achieve success in shaping succession planning within family-owned fish trading SMEs, providing a solid foundation for successful ownership transitions. This research offers valuable insights for future research and policy development concerning SME succession planning and business sustainability.

The purpose of this study was to assess factors affecting succession planning in family-owned fish trading SMEs businesses in Mwanza city. The research utilized quantitative methodologies to evaluate the effect of individual, familial, and organizational factors on succession planning within family-owned small and medium-sized enterprises (SMEs) in Mwanza city. Chi-square analyses revealed that leadership, delegation, the ability to disassociate from the business, and successor preferences significantly influence succession planning. Moreover, the interest and abilities of the successor plays a crucial role in the planning process. The study further found that family-level factors, including traditions, compensating family members, formal communication forums, and the desire to maintain family control, also significantly affect succession planning. Regression analyses indicated that individual factors such as leadership, delegation, and the abilities of potential successors positively influenced succession planning. At the family level, practices like compensating family members and establishing formal communication channels significantly contributed to succession planning, while traditional practices like favouring the eldest son as a successor did not have a substantial impact. Additionally, the study identified that the readiness of the successor, the presence of a clear and documented succession plan, effective board governance, a well-defined organizational structure, and the existence of a written strategic plan were key predictors of successful succession planning. The findings suggest that businesses with well-defined and specific succession plans, identified successors, and active development plans for the next generation are more likely to achieve success in shaping succession planning within family-owned fish trading SMEs, providing a solid foundation for successful ownership transitions. This research offers valuable insights for future research and policy development concerning SME succession planning and business sustainability.

The chance of survival of businesses in Rwanda is underprivileged and 82% of them close at an early stage, which negatively affects manufacturing companies, particularly Family-Owned Manufacturing Companies (FOMCs). Although there are other reasons why many FOMCs do not succeed in the next generation, a lack of pro-activeness has surfaced as a critical factor. Thus, the study aimed to assess the effect of pro-activeness on the survival of family-owned manufacturing companies in Kigali City, Rwanda. The study was conducted in Kigali City, from 2017 to 2023; Cochran’s formula was employed to determine a sample size of 384 senior employees picked at random from 77 FOMCs. This study employed Self-administered questionnaires and a quantitative approach. Multiple linear regression analysis was utilized to find out the relationship among variables. IBM (International Business Machines Corporation) SPSS (Software Package for Social Sciences) was employed to analyze data. The findings of this study indicated that pro-activeness had a substantial influence on the survival of family-owned manufacturing companies. The study offers a cogent explanation of the relationship between the longevity of family-owned manufacturing companies and pro-activeness. The study also offers important insights into the smooth and effective execution of pro-activeness for the survival and continuity of family-owned manufacturing enterprises. Moreover, the study findings indicated that combining pro-activeness and training the successors boost the productivity of family-owned companies and make them more competitive in the market, which leads to the long-term survival of FOMFs. The FOMFs that use pro-activeness in their operations survive longer than the ones without it.  

It remains unclear how lack of management succession planning relates to the collapse of 87% of the Tanzanian family-owned manufacturing businesses (FOMBs) after the first generation.  Also, the question of whether a firm’s background variables, namely; executive’s education level, business age, and business size, moderate the relationship between management succession planning and the survival of FOMBs remains unanswered. Therefore, this study investigated the relationship between succession planning and the survival of FOMBs, moderated by the firm’s background variables through the lens of resource-based theory as well as agency theory. A sample of 339 executives was randomly drawn from the FOMBs in Dar es Salaam city where the collapse of FOMBs after the first generation was revealed to be significant and surveyed using a structured questionnaire. Multiple linear regression was used as a quantitative data analysis technique with the support of SPSS as an analytical tool. Results revealed that management succession variables, namely; training the successor, successor involvement in business management and successor factors-work fit had a positive and significant relationship with the survival of FOMBs. However, the internal recruitment of the successor had an insignificant relationship with the survival of FOMBs. Therefore, management succession planning sustains the leadership pipeline and survival of the FOMBs through the involvement of the successor in business management, sufficiently training the successor, and handing over power to the successor whose competency and factors fit with the relevant work. The study contributes to an understanding of management succession planning variables and how they relate to the survival of family-owned manufacturing businesses. The study also provides a new conceptual framework on transgenerational management succession planning in the FOMBs.