International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 7 Issue 3, May-June 2023 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Cultural Influences and Succession Management among

Family Owned Businesses in Southeast Nigeria
Akwaeze, Emeka Alex Ph.D1; Abba, Ugochukwu Evaristus2; Edokobi, Tonna David Ph.D3
1
Department of Business Administration, Enugu State University of Science and Technology, Enugu, Nigeria
2,3
Department of Public Administration, Nnamdi Azikiwe University (NAU), Awka, Nigeria

ABSTRACT How to cite this paper: Akwaeze,

Finding a model for addressing the unimpressive rising mortality rate Emeka Alex | Abba, Ugochukwu
of family owned business model in Nigeria has being a teething Evaristus | Edokobi, Tonna David
problem. This study therefore examined cultural influences and "Cultural Influences and Succession
succession management among family owned businesses in southeast Management among Family Owned
Businesses in Southeast Nigeria"
Nigeria using an econometric regression model of the Ordinary Least
Published in
Square (OLS) on a sample of 321 respondents in South-East Nigeria. International Journal
Findings revealed that inheritance laws have a positive relationship of Trend in
with succession management proxied by business generation survival Scientific Research
in southeast Nigeria and it accounts for 34.2% growths in business and Development
generation survival in southeast Nigeria. Apprenticeship system has a (ijtsrd), ISSN: 2456-
direct and positive relationship with succession management proxied 6470, Volume-7 | IJTSRD57516
by business generation survival in southeast Nigeria. and it accounts Issue-3, June 2023,
for 57.4% growths in succession management in southeast Nigeria. pp.885-894, URL:
Female seclusion and polygamy have inverse relationship with www.ijtsrd.com/papers/ijtsrd57516.pdf
succession management in southeast Nigeria. Either of female
Copyright © 2023 by author (s) and
seclusion and polygamy will negatively affect succession International Journal of Trend in
management in southeast Nigeria by 11.5% and 33.1% respectively. Scientific Research and Development
Family governance has positive relationship with succession Journal. This is an
management in southeast Nigeria. It accounts for 46.1% influence on Open Access article
succession management in southeast Nigeria. In other words as distributed under the
family governance increases succession management increases terms of the Creative Commons
by46.1%. In the final analysis, all the five regression Attribution License (CC BY 4.0)
coefficients(inheritance laws, apprenticeship system, female (http://creativecommons.org/licenses/by/4.0)
seclusion, family governance and polygamy) have significant influence on succession management in southeast
Nigeria. Based on the findings of this study, the following recommendations are made: With respect to
inheritance laws and polygamy the original owners of family owned businesses should consider have a planned
succession management by ensuring that the successor undergoes the necessary tutelage and mentoring for
succession. Apprenticeship system was found to be significant. It important that the owner ensures that the
intended successor undergoes the needed apprenticeship training to enable acquire the needed intellectuality for
growing and sustaining the business. Females segregation is found to be significant and should be discourage by
law and the original owners of FOBs. This is because some females are born with innate abilities and critical
thinking aids successful management and when they are segregated by inheritance laws, family members may
mismanage the business among others.
INTRODUCTION
Most of the businesses that generate serious economic more than 50% of the private sector workforce and
activities around the world are Family Owned most prevalent type of business organizations
Businesses (FOB). They have been described in worldwide (Nnabuife & Okoli, 2017). In Southeast
extant literature as engine of growth and are regarded Nigeria, the family owned business model is
as a great pushing force for economic expansion, perceptibly and arguably the most predominant
creation of jobs, redistribution of wealth and social business. Unlike the traditional companies, the family
stability (Taruwinga, 2011, Nwadukwe, 2012). The owned business model is found in every nooks and
Family Owned Businesses (FOB) have had a cranny in the five states -Anambra, Enugu, Ebonyi,
chequered history. The business model is regarded as Imo and Abia- that make up southeast, Nigeria and
a the oldest in the world and has been instrumental to they operative with similar characteristics that has

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very serious ramification on the management of the Nigeria. Okoli, Ezeanolue and Edoko (2019) noted
firms. Most family firms owners view the business as that despite the vital roles played by family-owned
more than just an investment that has a long-term enterprises in Nigeria, they are still faced with the
strategic outlook thus family owners/managers are problem of succession as about 95% of family
emotionally attached to the company and tries to businesses do not survive the third generation of
shape the business in line with the family values. ownership. The family owned business model has
Family firms perceive themselves as such and have an been responsible for the fight against poverty in the
affinity for other family firms. Plausibly, this region through job creation and revenue generation to
perception in the management of family owned the government. The rising and soaring poverty level
business model in southeast Nigeria emanates from in the country has informed the government to
the culture of the Igbo man which has some critical engender various poverty reduction polices aimed at
characteristics like inheritance laws, apprenticeship promoting entrepreneurship and entrepreneurial
system, female seclusion, family governance and development which consequently gives birth to
polygamy that shapes their business life and family owned businesses. Consequently, the
consequently succession management of their sustainability of the business model as going concern
businesses. that is expected to live and outlive the owner of the
Research has shown that despite the unique role of business calls for a planned succession management.
family owned business in generating substantial Extant literature revealed that cultural influences play
amount of economic activity and contributing very serious roles in succession management
immensely to growth in emerging and developed (Aderonke, 2014; Jina, 2014; Nwadukwe, 2012;
economies, that only roughly one third of family Taruwinga, 2011). Researchers have investigated this
businesses survive the transition from founder (first study area but none the identified research have
generation) ownership to second generation owner- holistically looked at the various components of Igbo
management. Of those that successfully complete this culture like inheritance laws, apprenticeship system,
transition, only roughly one third tend to survive the female seclusion, family governance and polygamy
transition from second to third (and beyond) which arguably shapes the business life people from
generation ownership (Wee, Mohamed and Hasliza, southeast extraction in Nigeria. This study therefore
2015). This is corroborated by Nnabuife and Okoli fills this literature and knowledge gap by examining
(2017) that a large number of Family Owned cultural influences and succession management
Businesses (FOB’s) in Anambra State that have either among family owned businesses in southeast Nigeria.
closed shop or stopped functioning properly at the Objectives of the Study
demise of the owner/manager as a result of what The broad objective of the study is to examine
appears to be lack of proper succession planning. cultural influences and succession management
Given the importance of this business model to a among family owned businesses in southeast Nigeria.
developing economy like Nigeria and significant role Specifically, the study intends to:
it plays in terms of economic expansion, creation of 1. Ascertain the extent to which inheritance laws
jobs, redistribution of wealth and social stability it is have influenced succession management among
imperative that the government, academia and family owned businesses in southeast Nigeria.
stakeholders seeks lasting solution the mortality rate 2. Ascertain the extent to which apprenticeship
of family owned business in Nigeria. As cited by system have influenced succession management
Okoli, Ezeanolue and Edoko (2019) Family Owned among family owned businesses in southeast
Businesses (FOB) account for about 70% to 95% of Nigeria.
all business entities in most countries around the 3. Ascertain the extent to which female seclusion
world and also create between 50 and 80% has influenced succession management among
employment. For instance, family businesses generate family owned businesses in southeast Nigeria.
about 79% jobs and account for two-third of GDP in 4. Ascertain the extent to which family governance
India. They also create about 85% employment and has influenced succession management among
account for about 50% of the GDP in Brazil (Family family owned businesses in southeast Nigeria.
Firm Institute). In the same vein, family businesses in 5. Ascertain the extent to which polygamy has
Nigeria contribute 46.54% to GDP (SMEDAN, 2012; influenced succession management among family
Bernard, 2013; Ogbechie & Anetor, 2015; European owned businesses in southeast Nigeria
Family Business, 2012; Abouzaid, 2008).
Research Questions
Statement of the Problem 1. To what extent have inheritance laws influenced
This study was necessitated by unimpressive rising succession management among family owned
mortality rate of family owned business model in businesses in southeast Nigeria?

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2. To what extent has apprenticeship system application of strategic planning in the management
influenced succession management among family and ownership succession of Family Owned
owned businesses in southeast Nigeria? Businesses (FOB) in Anambra state. Family Owned
3. To what extent has female seclusion influenced Businesses face significant challenges in the
succession management among family owned application of strategic planning in both management
businesses in southeast Nigeria? and ownership succession in their businesses.
4. To what extent has family governance influenced
Nnabuife and Okoli (2017) examined succession
succession management among family owned
planning and sustainability of selected family owned
businesses in southeast Nigeria?
businesses in Anambra State, Nigeria using Pearson’s
5. To what extent has polygamy influenced
Product Moment Correlation Coefficient to test for
succession management among family owned
relationship and t-test to examine the mean
businesses in southeast Nigeria?
difference. Findings revealed that mentorship has a
Hypotheses for the Study high positive significant relationship with
Ho1: Inheritance laws have no significant influence sustainability and that there is no statistical difference
on succession management among family owned between the perceptions of selected incorporated
businesses in southeast Nigeria FOB’s and unincorporated FOB’s on succession
Ho1: Apprenticeship system laws have no significant planning in Anambra State.
influence on succession management among family Salameh (2017) examined succession of family
owned businesses in southeast Nigeria businesses in Palestine. This research adopts the
Ho1: Female seclusion has no significant influence on qualitative research design, utilizing the content
succession management among family owned analysis methodology, and capitalizing on in-depth
businesses in southeast Nigeria semi-structured interviews with 16 persons who are
purposively selected from family businesses in
Ho1: Family governance has no significant influence Palestine to explore their perceptions and
on succession management among family owned interpretations of the main factors that affect
businesses in southeast Nigeria succession planning and outcomes of these
Ho1: Polygamy has no significant influence on businesses. The key findings of this research paper
succession management among family owned clearly illustrate that the top challenges facing family
businesses in southeast Nigeria businesses in Palestine are: (1) the general political
and economic situation in the country, (2) increasing
Empirical Literature competition locally and internationally, (3) financial-
Nnabuife, Nwogwugwu and Okoli (2019) related problems, (4) introducing new products and
investigated polygamy and the role it plays in smooth services, (5) finding more customers and markets
succession of FOBs in the Southeast Nigeria using the locally and globally. The results also indicate that
kitchen model of succession in FOBs. Findings family businesses regard family business continuity,
revealed that Sentiments and emotions, Fear of bias, maintaining family unity, protecting the family name
Lack of succession planning knowledge, Not writing in the market, and protecting the family heritage and
a will early, Internal squabbles, Not taking the wealth as the most important benefits of succession
business as a going concern and Cultural Hindrances planning. In addition, it is found that the good father-
are factors Militating against Succession in FOBs of son relationship is viewed as one of the most critical
Polygamous Families. The study also revealed that factors that positively affects the outcomes of
FOBs play a great part in the economy of nations and succession of family businesses. On the other hand,
Southeast Nigeria is no exception. However, rivalry among family members is one of the factors
succession usually poses lots of problem especially that negatively affect succession outcomes.
when the business is owned by polygamous family. Moreover, preparing successor during the life of the
Okoli, Ezeanolue and Edoko (2019) examined current business leader is considered the best
strategic planning and enterprise succession in alternative for family businesses. On the other hand,
selected family owned businesses in Anambra State, having a written succession plan is not popular to
Nigeria using frequency, percentage, mean, standard most family businesses.
deviation and t-test statistics. Findings revealed that Magasi (2016) investigated factors influencing
there is no adequate application of strategic planning business succession planning among SMEs in
in the management and ownership succession of Tanzania. The study used Chi-square to establish the
Family Owned Businesses (FOB) in Anambra state. relationship between independent and dependent
There is also no significant difference in the variables. The findings showed that the higher the age

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of SMEs owners, the higher the possibility of structured questionnaire schedule administered to 372
preparing the business successors. Also, males are SMEs in various sectors. Data from the questionnaire
associated with more chance of being involved in were analyzed using summary statistics, binomial
business succession planning, the sons having a big logistic regression analysis and Pearson correlation
chance of being the successors. Furthermore, increase coefficient in establishing preliminary relationships
in the level of education of SMEs owners has a among the study variables. The findings of the
positive influence in preparing the successors. binomial logistics indicates that all the determinants
Similarly, business size has a positive influence on of culture have significant impact on the successful
business succession planning, the bigger business succession of family businesses while the result of the
being given the first priority. In contrary, increase in Pearson correlation coefficient shows that extended
involvement of family members in SMEs has no family system followed by inheritance law has the
influence on business succession planning. Lastly, highest magnitude effect on successful succession of
increase in communication among family members family business.
has a positive influence on business succession Jina (2014) examined the influence of culture on
planning. The study revealed that SMEs owners don’t succession planning in South African Muslim owned
prepare the business successors while still energetic. family Businesses using the rapid ethnographic
It further revealed that gender has an effect on research methodology. The study reveal that cultural
business succession planning and that the owners who element influence the planning for handover, the
have low level of education die with their businesses selection process of the successor, the training and
because they rarely prepare the successors. development of the successor, the handover process
Wee, Mohamed and Hasliza (2015) examined family and the management stage of the business. The study
business succession planning: unleashing the key also found that certain cultural aspect were influenced
factors of business performance using descriptive by religious practices and sentiments stemming the
statistics, correlation and regression technique. The Islamic belief system.
findings showed that management styles, Wahjono, Wahjoedi, Idrus and Nirbito (2014)
relationships between family members, values and examined succession planning as an economic
beliefs and successor training significantly influence education to improve family business performance in
family business performance levels. The relationship East Java Province of Indonesia using qualitative
between antecedents and business performance is approach with in-depth interview and outside
found to be partly mediated by succession issues and observation as a technique and using content analysis.
fully mediated by succession experience. The finding of this research is business start-up from
Komora. Guyo and Odhiambo (2015) investigated own money and saving and from human capital on
influence of business goals on effective entrepreneurship that learn from family; succession
implementation of Succession management in state planning are necessary but not easy; succession
enterprises in Kenya using Pearson’s Correlation planning conduct after family business growth bigger;
Analysis and Regression Analysis. Findings from the succession planning can improve family business
study showed that business goals significantly performance; economic education in family can make
influence effective implementation of succession succession planning in family business smoothly.
management in state enterprises in Kenya. Business Mehrabani and Mohamad (2011) examined
goals and objectives are part of the state enterprises succession planning: a necessary process in today’s
strategic planning and implementation processes that organization. The study relied on extensive review of
describe what an organization expects to accomplish extant literature. Findings revealed that organizations
over time. The nature of organization goals greatly that already have a succession planning and
determines how the organization undertakes management program in place must focus on
succession management and poor alignment of overcoming their exclusive obstructions to a best
business goals with succession management strategy practice system. Those organizations which do not
hinders effectiveness of many state enterprises. presently invest in succession planning and
Effective implementation of succession planning management system should perhaps consider it
requires identification of organization business goals seriously; assessing the needs, requirements, and
and alignment of the goals with the deployed appropriateness of implementation.
succession management strategy.
Michael, Roy and Nel (1996) examined factors
Aderonke (2014) examined culture determinants and influencing family business succession using
family business succession in Jos Metropolis, Plateau descriptive statistics and chi square statistics.
State Nigeria using a cross-sectional survey and Findings revealed a number of interesting

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characteristics of successful transitions. First, heirs businesses in South-East Nigeria. They are one of the
tend to be reasonably well-prepared, both in terms of economic hubs of the region where economic and
their educational background and experience. They business activities take place. The states have hotels
tend to start at the bottom in the company and to of different classes scattered all over the cities as a
spend a number of years serving in a variety of result of the growing number of consumers and rising
capacities throughout the organization. Second, population of people that engage in one business
relationships within the family are generally positive, activity or the other. The inhabitants are
with limited levels of conflict, rivalry, or hostility. predominantly civil servants, professional/specialists
High levels of trust and shared values are in evidence. and traders who are into various kinds of economic
Third, planning and control activities tend to be activities etc. Ebonyi state has one of the well planned
informal, with considerable emphasis on tax planning and fast growing state capitals with the potentials of a
and relatively little on succession planning. Similarly, promising businesses as a result of the influx of
there is little reliance on boards of directors, advisors people into Abakaliki the state capital(Olise &
or outside consultants. Nkamnebe, 2018).
In the final analysis, related studies on cultural Population and Sample Size for the Study
influences and succession management among family The population of the study consists of all the family
owned businesses have been reviewed. Researchers owned businesses in southeast Nigeria. The study
have investigated succession management from made use of multi-staged sampling technique to
various standpoints with robust insightful findings. determine the sample size of the study. This was
Available literature suggest that most of the studies carried out in three stages. According to
were carried out outside the shores of Nigeria thus, Chukwuemeka (2002), multi-stage sampling is
suggesting the lack of empirical literature in the study somewhat the combination of the other sampling
area. The only identifiable and related study in techniques. At least, it combines two methods. The
Nigeria were the studies carried out by Nnabuife, first stage was the division of the country into
Nwogwugwu and Okoli (2019) and Aderonke (2014). economic hubs that are in the five states in southeast
Nnabuife, Nwogwugwu and Okoli (2019) Nigeria using purposive or judgmental sampling.
investigated polygamy and the role it plays in smooth Judgmental sampling is a non-probability sampling
succession of FOBs in the Southeast Nigeria while that makes use of typical cases among the population
Aderonke (2014) examined culture determinants and to be studied which the researcher believes will
family business succession in Jos Metropolis, Plateau provide him or her with the necessary data needed
State Nigeria. These therefore created a literature and (Micheal et al, 2012). The second stage was a sub-
knowledge gap that justified this study on cultural sampling also called a two-stage sampling. This
influences and succession management among family involved a random selection of one hundred family
owned businesses in Southeast Nigeria. owned businesses from each of the economic hubs of
the five states in southeast Nigeria. In the third stage
METHODOLOGY
otherwise called the three-stage sampling, the simple
Area of the Study
random sampling technique was also used to select
This study was conducted in southeast Nigeria. Data
family owned businesses that have survived their first
for the study were obtained from managers/owners of
generation thus having a sample of 486 family owned
selected family owned businesses in Anambra State,
businesses. The table below shows the population of
Enugu State, Ebonyi State, Abia State and Imo State.
registered SMEs in the selected states in the six
The states are in Southeast Nigeria and they are
geopolitical zones and the sample size.
significant to this study because of the volume of
economic activities carried out in the states and the Table 1: Distribution of firms by Population and
level of development of the family owned businesses Sample
in the states. Anambra and Abia States play a leading States in Population of Sampled
role as a centre for the manufacturing of various kinds Southeast Nigeria selected FOBs FOBs
of goods, assembly and distribution of motorcycles Anambra State 100 79
and spare-parts in Nigeria and as such other economic Abia State 100 68
activities take place in the states. The states host the Imo State 100 59
largest markets in West Africa (Olise & Nkamnebe, Enugu State 100 66
2018). Ebonyi State 100 49
Enugu State and Imo State are significant to this Total 500 321
study because they are centers for corporate Source: Field survey, 2021

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Questionnaire Design, testing, and distribution questionnaire was administered to the respondents, it
The instrument for data collection was the was pretested on twenty FOBs owners/managers.
questionnaire. The questionnaire had two sections. Using their responses, the instrument was subjected to
The first section of the questionnaire contained reliability test using the Cronbach’s Alpha. The
general information about the respondents. It included Cronbach’s Alpha reliability statistics is 0.8011 or
ten background questions. The second section was a 80.1%, which is considered sufficiently high and
scaled items designed to collect information relating above the cutoff point of 0.6 suggested by Hair, Bush,
to objectives of the study. The responses to scale and Ortinua (2006).
items measuring all the responses were measured
Data Analysis Technique
using a four-point likert-type scale anchored by
Descriptive statistics like frequency and percentages
strongly agree (4), Agree (3), Disagree (2), and
and the regression analysis of the Ordinary Least
Strongly Disagree (1) respectively. Five trained
Square (OLS) were used to conduct the various
research assistants were used in the administration of
analysis of this study. The t-statistic using the
the questionnaire. They assisted the respondents to
regression technique Ordinary Least Square (OLS)
complete the questionnaire through an interactive
was also used to test the hypotheses of the study. All
process; thus making sure the questionnaire was
the analyses were done using SPSS version 23.
completed on the spot. However, before the final
Model Specification
The structural form of the model is stated as follows
SUCM = f (INL, APS, FES, FAG, POL) .................................................................................. (1)
The mathematical form of the model
SUCM = β0 + β1 INL +β2 APS + β3 FES + β4 FAG + β5 POL .............................................. (2)
The econometric form of the model
SUCM = β0 + β1 INL +β2 APS + β3 FES + β4 FAG + β5 POL + µi .............................................. (3)
Where;
SUCM = Succession Management
INL = Inheritance laws
APS = Apprenticeship system
FES = Female seclusion
FAG = Family governance
POL = Polygamy
f = Functional relationship
β0 = the intercept or the constant
β1 – β3 = the co-efficient of the explanatory variables
µt = Stochastic error term.
ANALYSIS OF SURVEY RESULT
Demographic Profile
Table 2: Distribution of Respondents According to Gender
Variable Frequency Percent (%) Cumulative (%)
Male 479 99.4 99.4
Female 3 0.6 100
Total 321 100
Source: Field Survey, 2020
As shown in table 2 shows that four hundred and ninety-six of the respondents representing 99.4% of the
respondents are males while three of the respondents representing 0.6% of the respondents are females.
Table 3: Distribution of Respondents According to Age
Variable Frequency Percent (%) Cumulative (%)
18-32 23 4.8 4.8
31-40 48 10.0 14.8
41-50 238 49.4 64.2
51-60 93 19.2 83.4
61-70 80 16.6 100.0
Total 321 100.0
Source: Field Survey, 2020

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As shown in table 3, twenty three respondents, representing 4.8% of the respondents are between the ages of 18-
32. Forty-eight respondents, representing 10.0% of the respondents, are between the ages of 31-40. Two hundred
and thirty-eight respondents, representing 49.4% of the respondents, are between the ages of 41-50. Ninety-three
respondents, which account for 19.2% of the respondents are between the ages of 51-60, while eighty
respondents that account for 16.6% of the respondents, are between the ages of 61-70.
Table 4: Distribution of Respondents According to Educational Qualification
Variable Frequency Percent (%) Cumulative (%)
Primary 15 3.1 3.1
Secondary 439 91.1 94.2
Tertiary 28 5.8 100.0
Total 321 100.0
Source: Field Survey, 2020
From table 4, all the respondents had formal education. Fifteen respondents representing 3.1% of the
respondents had primary education. Four hundred and thirty-nine respondents representing 91.1% had secondary
education while twenty-eight respondents representing 5.8% had tertiary education.
Table 5: Distribution of Respondents According to Years of Business Experience
Variable Frequency Percent (%) Cumulative (%)
1-5 15 3.1 3.1
6-10 85 17.7 20.8
11-15 97 20.1 40.9
15-30 285 59.1 100.0
Total 321 100.0
Source: Field Survey, 2020
With respect to business experience in private label, table 5 reveals that fifteen respondents representing 3.1% of
the respondents had 1-5years business experience. Eighty-five respondents representing 17.7% of the
respondents had 6-10years business experience. Ninety-seven respondents representing 20.1% of the
respondents had 11-15years business experience, while two hundred and eighty-five respondents representing
59.1% of the respondents had 15-30years business experience.
Table 6: Distribution of Respondents According to Marital Status
Variable Frequency Percent (%) Cumulative (%)
Married 396 82.2 82.2
Single 68 14.1 96.3
Widow/Widower 18 3.7 100.0
Total 321 100.0
Source: Field Survey, 2020
From table 6, three hundred and ninety-six respondents representing 82.2% of the respondents are married.
Sixty-eight respondents representing 14.1% of the respondents are single, while eighteen respondents
representing 3.7% of the respondents are widow/widower.
Regression Analysis Result
Table 1: Regression Result on cultural influence and succession management among FOBs in
southeast Nigeria
Model B Std. error T Sig.
Constant(C) 0.1205 0.0309 3.8979 0.004
Inheritance laws 0.3419 0.0626 5.4543 0.001
Apprenticeship system 0.5744 0.0671 8.5544 0.000
Female seclusion -0.1150 0.0345 -3.3331 0.004
Family governance 0.4607 0.6831 7.6744 0.000
Polygamy -0.3311 0.0619 -5.3455 0.001
R 0.900
R2 0.858
2
Adj. R 0.821
F-statistic 33.001 0.000
Source: Field Survey 2021

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Dependent Variable: Succession Management proxied by Business generation survival As shown in table 1, the
regression result revealed the regression coefficients of the variables, standard errors, t-test values and the
probability values showing the levels of significance of the variables entered in the model. R, R2 and adjusted R2
measures the combine effect of all the variables entered in the model on the regressand, independent or the
explained variable - Succession Management. The F-statistics measures the fitness of the model. The constant
(C) in the result suggest the behaviour of the regressand, independent or the explained variable if all the
regressors, independent variables or the explanatory variables - inheritance laws, apprenticeship system, female
seclusion, family governance and polygamy - are held constant.
Discussion of Findings
From the result it is observed that the regression line has a positive intercept as presented by the constant (c) =
0.1205. This means that if all the variables are held constant or fixed (zero), the succession management proxied
by business generation in southeast Nigeria increases by 12.1%. The result also conforms to the a priori
expectation which states that the intercept could be positive or negative.
Inheritance laws have a positive relationship with succession management proxied by business generation
survival in southeast Nigeria. This implies that the inheritance laws and succession management proxied by
business generation survival increase in the same direction. In other words, a 1% increase in Inheritance laws
will bring about 34.2% growths in business generation survival in southeast Nigeria.
Apprenticeship system has a direct and positive relationship with succession management proxied by business
generation survival in southeast Nigeria. In other words, a 1% increase in apprenticeship system will bring about
57.4% growths in succession management in southeast Nigeria.
Female seclusion and polygamy have inverse relationship with succession management in southeast Nigeria.
This implies that the more there is female segregation and increase in polygamy there will be increase in FOBs
mortality rate. Therefore, an increase in either of female seclusion and polygamy will negatively affect
succession management in southeast Nigeria by 11.5% and 33.1% respectively.
Family governance has positive relationship with succession management in southeast Nigeria. It accounts for
46.1% influence on succession management in southeast Nigeria. In other words as family governance increases
succession management increases by 46.1%.
In the final analysis, we look at the overall fitness and significance of the model using the R2 and the F-statistics
that is by applying the coefficient of determination (R2) and the F–test. In general, the joint effect of the
explanatory variables-independent variables-in the model account for 0.858 or 85.8% of the variations in
succession management in southeast Nigeria. This implies that 85.8% of the variations in the succession
management in southeast Nigeria are being accounted for or explained by the inheritance laws, apprenticeship
system, female seclusion, family governance and polygamy. While other independent variables not captured in
the model explain just 14.2% of the variations in succession management in southeast Nigeria.
All the five regression coefficients (inheritance laws, apprenticeship system, female seclusion, family
governance and polygamy) have significant influence on succession management in southeast Nigeria.
Test of Hypotheses
The t-test is used to know the statistical significance of the individual parameters at 5% significance level. The
result is showed on table 8 below.
Table 2: Summary of t-statistic
Variables t-cal (tcal) Sig. Conclusion
Constant(C) 3.8979 0.004 Statistically Significant
Inheritance laws 5.4543 0.001 Statistically Significant
Apprenticeship system 8.5544 0.000 Statistically Significant
Female seclusion -3.3331 0.004 Statistically Significant
Family governance 7.6744 0.000 Statistically Significant
Polygamy -5.3455 0.001 Statistically Significant
F-statistic 33.001 0.000 Statistically Significant
Source: Researchers computation
We begin by bringing our working hypotheses to focus in considering the individual hypothesis. From table 2,
the t-test result is interpreted below:

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Hypothesis One CONCLUSION AND RECOMMENDATIONS
Ho1: Inheritance laws have no significant influence Findings from the study revealed that:
on succession management among family owned 1. Inheritance laws have a positive relationship with
businesses in southeast Nigeria. succession management proxied by business
generation survival in southeast Nigeria and it
From table 2, the t-test value of Inheritance laws is
accounts for 34.2% growths in business
significant. We, therefore, reject the null hypothesis
generation survival in southeast Nigeria.
and conclude that the inheritance laws have
significant influence on succession management 2. Apprenticeship system has a direct and positive
among family owned businesses in southeast Nigeria. relationship with succession management proxied
by business generation survival in southeast
Hypothesis Two
Nigeria. and it accounts for 57.4% growths in
Ho2: Apprenticeship system laws have no significant
succession management in southeast Nigeria.
influence on succession management among family
owned businesses in southeast Nigeria 3. Female seclusion and polygamy have inverse
relationship with succession management in
From table 2, the t-test value of apprenticeship system
southeast Nigeria. Either of female seclusion and
is significant at 0.000 level of significance. We,
polygamy will negatively affect succession
therefore, reject the null hypothesis and accept the
management in southeast Nigeria by 11.5% and
alternate by concluding that apprenticeship system
33.1% respectively.
has significant influence on succession
management among family owned businesses in 4. Family governance has positive relationship with
southeast Nigeria. succession management in southeast Nigeria. It
accounts for 46.1% influence on succession
Hypothesis Three
management in southeast Nigeria. In other words
Ho3: Female seclusion laws have no significant
as family governance increases succession
influence on succession management among family
management increases by 46.1%.
owned businesses in southeast Nigeria
5. In the final analysis, all the five regression
From table 2, the t-test value of female seclusion is
coefficients (inheritance laws, apprenticeship
significant at 0.004 level of significance. We,
therefore, reject the null hypothesis and accept the system, female seclusion, family governance and
alternate by concluding that female seclusion has polygamy) have significant influence on
significant influence on succession management succession management in southeast Nigeria.
among family owned businesses in southeast Nigeria. In the final analysis, this study has examined cultural
influences and succession management among family
Hypothesis Four
Ho4: Family governance laws have no significant owned businesses in southeast Nigeria. The study has
specifically ascertained the effect inheritance laws,
influence on succession management among family
owned businesses in southeast Nigeria apprenticeship system, female seclusion, family
governance and polygamy on succession management
From table 2, the t-test value of family governance is in southeast Nigeria. Findings revealed that all the
significant at 0.000 level of significance. We, five regression coefficients (inheritance laws,
therefore, reject the null hypothesis and accept the apprenticeship system, female seclusion, family
alternate by concluding that family governance has governance and polygamy) have significant influence
significant influence on succession management on succession management in southeast Nigeria.
among family owned businesses in southeast Nigeria. Although female seclusion and polygamy have
Hypothesis Five inverse relationship with succession management in
Ho5: Polygamy has no significant influence on southeast Nigeria but they have significant influence
succession management among family owned on succession management.
businesses in southeast Nigeria Based on the findings of this study, the following
From table 2, the t-test value of polygamy, is recommendations are made:
significant at 0.001 level of significance. We, 1. With respect to inheritance laws and polygamy
therefore, reject the null hypothesis and accept the the original owners of family owned businesses
alternate by concluding that polygamy has significant should consider have a planned succession
influence on succession management among family management by ensuring that the successor
owned businesses in southeast Nigeria undergoes the necessary tutelage and mentoring
for succession.

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