Exploring the Dynamics of Succession Planning Management in Malaysian Family-Owned Businesses: a Comprehensive Analysis of Gender Diversity, Nepotism, and Organisational Survival

Teoh, An Min (2024) Exploring the Dynamics of Succession Planning Management in Malaysian Family-Owned Businesses: a Comprehensive Analysis of Gender Diversity, Nepotism, and Organisational Survival. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Amidst the backdrop of global economic dynamics, family-owned businesses stand as pillars of resilience and tradition, yet their survival is often challenged by internal complexities, including the failure of succession planning management. Gender diversity and nepotism represent significant challenges within the corporate landscape, often posing as formidable barriers to the effective implementation of succession planning management strategies. These complexities, rooted in the Confusion Principle, can have profound implications for the long-term viability and survival of businesses. Thus, this research delves into the intricate relationships between gender diversity, nepotism, succession planning management, and the survival of family-owned businesses, particularly within the context of Malaysia. To archive the research objectives, a cross-sectional approach under quantitative methodology was utilised. By utilising a multi-dimensional analysis approach, data from a comprehensive survey are examined to assess the impact of these constructs on business sustainability. A total of 200 employees in Malaysia family-owned businesses were be targeted as respondent in this research. All the data collected will be analysed through Statistical Package for Social Sciences Version 29.0 (SPSS). The findings reveal that gender diversity significantly contributes to the survival of family-owned businesses, highlighting the importance of inclusive organizational structures. Unexpectedly, nepotism, often viewed negatively, exhibits a positive correlation with business survival, suggesting nuanced dynamics within family-run enterprises. However, the mediation analysis indicates that succession planning management acts as a crucial mediator, moderating the influence of gender diversity on business survival while failing to mediate the relationship between nepotism and survival. These results offer valuable insights for family business owners, policymakers, and scholars. By emphasizing the pivotal role of gender diversity and succession planning in fostering business resilience, this study provides actionable recommendations for enhancing the sustainability of family-owned enterprises. Moreover, the nuanced understanding of nepotism challenges conventional wisdom, prompting further exploration into its implications for organizational dynamics.