Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between succession planning and employee retention has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Family-Owned Businesses in Nigeria where operating conditions differ markedly from more developed markets.

Selected Family-Owned Businesses in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While succession planning is widely discussed in policy and industry circles, empirical evidence on its actual effect on employee retention within Selected Family-Owned Businesses 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 employee retention — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Succession Planning on employee retention in Selected Family-Owned Businesses in Nigeria.
2. To assess the extent to which succession planning influences employee retention within the study area.
3. To identify the challenges associated with succession planning in relation to employee retention.
4. To recommend strategies for optimizing succession planning in order to improve employee retention.

1.4 Research Questions

1. What is the effect of succession planning on employee retention in Selected Family-Owned Businesses in Nigeria?
2. To what extent does succession planning influence employee retention within the study area?
3. What challenges are associated with succession planning in relation to employee retention?
4. What strategies can be adopted to optimize succession planning in order to improve employee retention?

1.5 Significance of the Study

Beyond its academic contribution to the field of human resource management, this study has practical value for management teams within Selected Family-Owned Businesses in Nigeria seeking to understand how succession planning translates into measurable outcomes around employee retention. 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 employee retention within the context of Selected Family-Owned Businesses in Nigeria. It reflects a clearly defined 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.