Chapter One — 1.1 Background to the Study

Succession Planning has increasingly attracted the attention of researchers, regulators, and practitioners concerned with organizational commitment. This growing interest reflects the recognition that succession planning does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Microfinance Banks in Nigeria.

Within the context of Selected Microfinance Banks in Nigeria, 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 Selected Microfinance Banks in Nigeria 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 Selected Microfinance Banks in Nigeria.
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 Selected Microfinance Banks in Nigeria?
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 Selected Microfinance Banks in Nigeria 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

In terms of scope, this MSc study confines itself to Selected Microfinance Banks in Nigeria, focusing specifically on how succession planning relates to organizational commitment within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.