Succession Planning and Sustainability of Small and Medium Enterprises: The Moderating and Mediating Role of Transformational Leadership and Career Development

Linda Adadevoh; Mensah Marfo; Adadevoh Carlo; Eleazer Fianko Ofei; Carl- Reindolph Asante; Evenly Biriwa Ofei; Abiel Ashitey ARMAH

doi:10.61707/9v0kdk36

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
Eleazer Fianko Ofei Accra Institute of Technology (AIT), Department of Accounting, Ghana
Carl- Reindolph Asante Accra Institute of Technology (AIT), Department of Accounting, Ghana.
Evenly Biriwa Ofei Entrance Pharmaceuticals Limited, Production Department.
Abiel Ashitey ARMAH Accra Institute of Technology (AIT), Department of Business, Ghana

DOI:

https://doi.org/10.61707/9v0kdk36

Keywords:

Succession Planning, Sustainability, Career Development, Transformational Leadership, Ghanaian SMEs

Abstract

This study explores how succession planning (SP) impacts the sustainability of manufacturing small and medium-sized enterprises (SMEs) in Ghana, with a focus on the moderating role of transformational leadership (TL) and the mediating role of career development (CD). A survey of 500 employees from 200 registered manufacturing SMEs was conducted using a cross-sectional design and quantitative approach to gather data. Structural equation modeling analyzed the data and tested the hypotheses. Findings show that SP significantly predicts CD and SME sustainability. TL directly enhances SME sustainability and moderates the SP- SME sustainability relationship. CD directly enhances SME sustainability and mediates the SP- SME sustainability relationship. These results contribute to the existing literature by demonstrating how SP, TL, and CD interact within manufacturing SMEs. The study extends existing frameworks by providing valuable insights into SME sustenance. Future research can further investigate these interactions in different contexts to validate and extend the findings.