Enhancing SME performance through succession planning, family influence, and successor attributes: evidence from Ghana’s hospitality sector

Godfred Etse Klugah (), Vida Korang (), Francis Ransford Esifie () and Mohammed Awal Zingnaa Iddrisu ()
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Godfred Etse Klugah: Catholic University of Ghana
Vida Korang: Catholic University of Ghana
Francis Ransford Esifie: Business School, Institute of Management and Public Administration
Mohammed Awal Zingnaa Iddrisu: Tamale Technical University

SN Business & Economics, 2025, vol. 5, issue 9, 1-25

Abstract: Abstract Family-owned small and medium enterprises (SMEs) are vital to economic development in emerging markets, yet they often struggle with long-term sustainability due to challenges in succession planning, family dynamics, and varying successor capabilities. This study aims to examine how succession planning, family influence, and the socio-demographic characteristics of successors jointly affect the performance of family-owned SMEs in Ghana’s hospitality sector. Guided by the Resource-Based View, Human Capital Theory, and Agency Theory, the study develops a conceptual framework to explore these relationships. Data were collected from 191 family-owned SMEs across three major regions of Ghana and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The analysis reveals that effective succession planning significantly enhances firm performance, affirming its critical role in ensuring business continuity. Family influence shows a moderate impact, with benefits when well balanced but potential drawbacks when excessive. Additionally, successors’ attributes, particularly education, experience, and age, positively influence performance, which emphasizes the importance of human capital. The findings contribute to theory by integrating multidisciplinary perspectives and offer practical guidance for SME owners, successors, and policymakers on improving succession strategies, governance, and leadership development. The study underscores the need for structured planning and strategic talent development to ensure the resilience and sustainability of family-owned enterprises in Ghana and similar emerging economies.

Keywords: Succession planning; Family influence; Socio-demographics; SME performance; Ghana; Family business; PLS-SEM (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s43546-025-00881-0

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