Assessing the impact of succession planning on the sustainability of family enterprises: A case study in South African family businesses
Year: 2025
Type: article
Abstract: Orientation: Succession planning is essential for the continuity and sustainability of family businesses, particularly in South Africa where such firms contribute significantly to economic activity and employment. Research purpose: This study investigates how effective succession planning influences leadership continuity, organisational resilience, and intergenerational sustainability in South African family-owned businesses. Motivation for the study: Many family businesses lack formal succession systems, leading to leadership instability, internal conflict, and business decline. Addressing this gap is crucial for long-term survival and economic contribution. Research approach/design and method: A qualitative multiple case study was conducted using semi-structured interviews with owners, managers, and supervisors from diverse family firms. Data were analysed through thematic analysis supported by NVivo. Main findings: Four themes shaped successful succession: early leadership development, inclusive governance, adaptability and innovation, and clear ownership and legal frameworks. Firms lacking structured plans experienced reactive transitions and operational strain. Practical/managerial implications: Family businesses should embed succession planning into strategic management, formalise governance structures, invest in leadership pipelines, encourage inclusive communication, and utilise external advisors during transitions. Contribution/value-add: The study offers context-specific insights into succession practices in South Africa and provides actionable strategies to strengthen continuity, resilience, and socio-economic impact in family enterprises.
Source: Acta Commercii
Authors: Victoria O. Adekomaya, Chris Schachtebeck
Institution: University of Johannesburg
Language: English
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $726
OpenAlex ID: W4417450408