Chapter One — 1.1 Background to the Study

In recent years, Succession Planning has emerged as a critical factor shaping organizational commitment across organizations operating in and around the Nigerian Capital Market. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how succession planning relates to organizational commitment has become an important area of both scholarly and practical concern.

Within the context of the Nigerian Capital Market, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of succession planning on organizational commitment, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While succession planning is widely discussed in policy and industry circles, empirical evidence on its actual effect on organizational commitment within the Nigerian Capital Market remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to succession planning are helping or hindering organizational commitment — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Succession Planning on organizational commitment in the Nigerian Capital Market.
2. To assess the extent to which succession planning influences organizational commitment within the study area.
3. To identify the challenges associated with succession planning in relation to organizational commitment.
4. To recommend strategies for optimizing succession planning in order to improve organizational commitment.

1.4 Research Questions

1. What is the effect of succession planning on organizational commitment in the Nigerian Capital Market?
2. To what extent does succession planning influence organizational commitment within the study area?
3. What challenges are associated with succession planning in relation to organizational commitment?
4. What strategies can be adopted to optimize succession planning in order to improve organizational commitment?

1.5 Significance of the Study

Beyond its academic contribution to the field of business administration, this study has practical value for management teams within the Nigerian Capital Market seeking to understand how succession planning translates into measurable outcomes around organizational commitment. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Succession Planning and its relationship with organizational commitment within the context of the Nigerian Capital Market. It reflects a MSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.