Business Succession Planning Practices and Performance of Selected Supermarkets in Western Kenya

THESIS TITLE: Business Succession Planning Practices and Performance of Selected Supermarkets in Western Kenya

STUDENT’S NAME: Esther Nekesa Lufwarura

SUPERVISORS:

1. Kadian Wanyonyi Wanyama
2. Ruth Atidah Mitalo

ABSTRACT

The purpose of this study was to examine business succession planning and performance of selected supermarkets. One of the major problems faced by supermarkets globally is the transfer of leadership, ownership and management due to poor business succession planning that has led to decline in performance of selected supermarkets. Most supermarkets have been experiencing management issues and the real cause of this disruption is not yet clear. Actual performance declined especially in the year 2019 and 2020 from 7% to 6.7% respectively. Few studies had focused on business succession planning and performance. However, there were limited studies done on business succession planning practices and performance of selected supermarkets in Western Kenya. The specific objectives of the study were; to establish the influence of talent management on performance of selected supermarkets, to examine the influence of job rotation on performance of selected supermarkets, to determine the influence of mentoring on performance of selected supermarkets and to determine the moderating influence of organizational culture on the relationship between business succession planning practices and performance of selected supermarkets in Western Kenya. This study was anchored on human capital theory, job characteristic theory and social exchange theory. This study used descriptive research design because of its systematic approach to data collection, collation, analysis and presentation. The study target population was 193 staff consisting of managers (owners) and heads of departments from the 62 fully licensed supermarkets in Western Kenya. The study used sample size of 130 attained using simple random sampling by Yamane formula. The research was tested. Content validity was achieved by reassessing the relevance of the tools to the study title and objectives while construct validity was determined by ensuring that all the constructs in the conceptual framework had been captured in the tools. Reliability was tested using Cronbach alpha at 0.7 and tested by pilot study. The structured questionnaire was used as data collection instruments to collect quantitative data on business succession planning practices and performance. Data analysis and interpretation for each of the objectives was based on descriptive statistics and inferential statistics. Descriptive statistics employed use of frequencies and percentages while inferential statistics used correlations and regression coefficients. Data was analyzed using SPSS Software version 22 and presented using APA tables. Talent management has a moderate positive effect on supermarket performance. Job rotation also has a moderate positive effect on supermarket performance; mentoring shows a positive relationship with the performance of selected supermarkets; organizational culture plays a significant moderating role in the relationship between business succession planning practices and performance. It was concluded that organizations should prioritize effective talent management strategies to improve overall performance; implementing job rotation programs can contribute to improved performance outcomes; organizations should consider implementing mentoring initiatives to foster employee development and enhance performance. A positive and supportive organizational culture enhances the effectiveness of business succession planning in improving performance outcomes. Recommendations for the study were:  supermarkets prioritize the implementation of effective talent management practices; consider implementing job rotation programs; establish mentoring programs and should focus on fostering a positive and supportive culture. The study would provide other scholars and academicians with a basis for further research on the subject.