Management Succession Planning and Corporate Survival in Nigeria: A Study of Banks In Portharcourt

Abstract

This study examined management succession planning and corporate survival in Nigeria:  A study of banks in Port Harcourt. The objective was to investigate the extent to which management succession planning dimensions- management development (MD), mentoring (ME), and retention effort (RE) affect corporate survival measures - adaptability (AD) and dynamic capability (DC). The study had the 21 existing deposit money banks in Port Harcourt as population. In the course of this study primary data were sourced through questionnaire administered to the population and analyzed using descriptive statistics, Spearman Rank correlation and multiple regressions with the aid of Software Package for Social Sciences (SPSS). Three multiple regression equations were formulated and t-test were used to determine the level of significance and F-test statistics shows the overall fitness of the models. In model I, the result shows a strong relationship between the dependent variable measure adaptability and the independent variable dimensions Management Development (MD), Mentoring (ME) and Retention Effort (RE), with an R² of 99.6%. In model II, the result also revealed a strong relationship between the dependent variable measure dynamic capability and the independent variable dimensions Management Development (MD), Mentoring (ME) and Retention Effort (RE) with an R² of 0.9811 representing 98.1%. In model III, the result shows a good relationship between the dependent variable and the independent variable with an R² of 0.691 which accounts for 69.1% variations in the explanatory variable. The study concludes that management succession planning has a positive correlation with corporate survival. We therefore, recommend that management team –cum- policy makers should integrate succession planning into corporate management policies to enhance corporate survival in Nigerian banking industry.

Keywords: Management Succession, Corporate Survival, Dynamic Capacity, Retention Effort, Adaptability and Mentoring