ABSTRACT
Nigeria’s economy is dominated by Small and Medium Enterprises (SMEs) in Agriculture, Manufacturing, Commerce, Industry and Services. Despite the active involvements by SMEs in Nigeria economy. High mortality rate among SMEs is a matter of major concern. The main purpose of the study is to determine impact of leadership styles on succession planning in SMEs in Lagos state, Nigeria. The study specifically determined impact of (i) directive, (ii) transformational, (iii) participative and (iv) transactional leadership on succession planning in SMEs.
This study adopted an explanatory research. The population of the study was 11,663 registered SMEs in Lagos state. The study used simple random sampling technique to select the sample size of 387out of the total population of 11,663 registered SMEs in Lagos state. Data obtained were analyzed and presented using both descriptive and inferential statistics. Regression analysis was used to test the hypotheses.
The study comes out with the following findings: (i) (R=0.812, R2=0.659, (0.000) <0.5). This implies that 65.9% variation in the dependent variable (succession planning) is explained by the independent variables used in the model. (ii) (R=0.806, R2=0.649, (0.000) <0.5) this Indicates that the model as fitted explains 64.9% of the variability in succession planning (iii) (R=0.535, R2=0.287, P (0.000) <0.5). This implies that 28.7% variation in the dependent variable (succession planning) is explained by the independent variables used in the model. (iv) (R=0.778, R2=0.605, P (0.000) <0.5). Indicates that the model as fitted explains 60.5% of the variability in succession planning.
The study concludes that directive, transformational, participative and transactional leadership are major and significant determinants of succession planning in SMEs. It is therefore important for organization to build a culture of strong leadership whereby employees show effective leadership at all levels and leaders should teach and mentor their followers and show faith in their capabilities to succeed.
TABLE OF CONTENT
Title Page i
Certification Page ii
Declaration iii
Dedication iv
Acknowledgment v
Abstract vi
Table of Contents vii
List of Tables x
List of Figures xi
List of Appendices xi
CHAPTER ONE
INTRODUCATION 1
1.0 Introduction 1
1.1 Statement of the Problem 2
1.2 Research Questions 2
1.3 Objectives of the Study 3
1.4 Research Hypotheses 3
1.5 Significance of the Study 4
1.6 Scope of the Study 4
1.7 Organization of the Study 4
CHAPTER TWO
LITERATURE REVIEW 6
2.1 Introduction 6
2.2 Conceptual Framework 6
2.2.1 Concept of Leadership 6
2.2.2 Leadership Styles 7
2.2.3 Concept of Succession Planning 10
2.2.4 Concept of SMEs 14
2.2.5 Characteristics and Role of SMEs in Economy 17
2.2.6 Leadership Effectiveness 19
2.3 Directive Leadership and Succession Planning 22
2.4 Transformational Leadership and Succession Planning 24
2.5 Participative Leadership and Succession Planning 26
2.6 Transactional Leadership and Succession Planning 27
2.7 Theoretical Framework 28
2.7.1 Situational Theory 28
2.7.2 Trait Theory 29
2.7.3 Great Man Theory 29
2.7.4 Theory Adopted For the Study 30
2.8 Empirical Framework 30
2.8.1 Research Gap 30
2.9 Conceptual Mode for the Study 33
2.9.1 Review of Variables 33
CHAPTER THREE
RESEARCH METHODOLOGY 35
3.1 Introduction &n