Succession Planning Strategies and the Sustenance of SME in Ghana: The Moderating Role of Leadership Styles

Linda Adadevoh; Mensah Marfo; Adadevoh Carlo; Eunice Ofosu-Mireku; Augustina Aikins Sackle; Elizabeth Dede Pardie; Ruby Norkor Noi; Edward Annan

doi:10.61707/gp49pr58

Authors

Linda Adadevoh Nobel International Business School (NIBS) Department of Business, Ghana
Mensah Marfo Accra Institute of Technology (AIT), Department of Business, Ghana
Adadevoh Carlo Accra Institute of Technology (AIT), Department of Information Technology, Ghana
Eunice Ofosu-Mireku Accra Institute of Technology (AIT), Department of Information Technology, Ghana
Augustina Aikins Sackle Cape Coast Technical University Department of Operational Management, Ghana
Elizabeth Dede Pardie Accra Institute of Technology (AIT), Department of Business, Ghana
Ruby Norkor Noi Accra Institute of Technology (AIT), Department of Business, Ghana
Edward Annan Accra Institute of Technology (AIT), Department of Business, Ghana

DOI:

https://doi.org/10.61707/gp49pr58

Keywords:

Succession Planning Strategies, Transformational Leadership, Transactional Leadership, Participative Leadership, Sustenance of Ghanaian Manufacturing SMEs

Abstract

This research examines the moderating role of transformational, transactional, and participative leadership in the relationship between succession planning strategies and the sustenance of manufacturing SMEs in Ghana. Surveying 500 leaders from 200 registered manufacturing SMEs, the study employed a quantitative approach and structural equation modeling to test the proposed hypotheses. Findings reveal that succession planning strategies, along with transformational, participative, and transactional leadership, significantly predict SME sustenance. These leadership styles moderate the impact of succession planning strategies on SME sustenance. The originality of this study is based on examining the relationship between succession planning strategies and leadership styles within the Ghanaian manufacturing context, area previously underexplored. By integrating leadership styles as moderating variables, the study offers a new conceptual framework that enhances understanding of how leadership optimize succession planning strategies and improve SME sustenance, uniquely contributing to literature by empirically demonstrating the moderating effects of leadership on succession planning strategies and SME sustenance.