Mediating effect of Entrepreneurial Orientation on the influence of Mentoring, Training, and Successor Competence on Family Businesses’ Survival in Southwest, Nigeria

Abstract

The study investigates the mediating effect of the influence of mentoring, training, and successor competence on FBs’ survival in Southwest Nigeria. The sampling method used was purposive, while closed-ended questionnaires were sent to 360 respondents to collect information. A total of 300 completed questionnaires were completed and returned to researchers. The results of SEM reveal that training and EO are positively and significantly associated with FB survival. Results further reveal that mentoring and successor competence have not significantly influenced FBs’ survival. There is evidence that EO mediates fully between mentoring and FB survival, but not between training and FB survival, and partially mediates successor competence and FB survival. This means EO is a platform to influence the mentoring and successor competence that drive the sustainability and growth of FB. This development is sending a positive signal to family businesses that after the founder's death, the successors will be able to make FBs more productive. Therefore, for the smooth operation of FB, successors should be mentored and foster family partnerships

Sustainable Development of Chinese Family Businesses: Exploring the Role of Succession Planning in Maintaining Organizational Sustainability from the Perspective of Socioemotional Wealth

“…Therefore, these analysis results allow us to accept Hypothesis 1. These significant results support the findings of Aremu and Lawal [43], who claim that succession planning has a positive effect on firm performance and longevity because succession planning can provide potential successors with relevant mentoring related to management.…”

“…It is critical for family businesses to develop succession planning and provide relevant training and mentoring to successors [39]. Indeed, the successors' levels of training and mentoring play an essential role in developing succession planning, which has a positive effect on firm performance [43]. Put differently, succession planning aims to identify the proper candidates and train them to be competent for a successful transition, which eventually maintains better firm performance [12].…”