The Role of Succession Planning Practices in Ensuring Business Continuity in Ethiopian Family-Owned Businesses: in the case of Bole Sub City, Addis Ababa, Ethiopia”
| dc.contributor.advisor | Tewodros Wuhib | |
| dc.contributor.author | Yordanos Solomon | |
| dc.date.accessioned | 2026-10-16T08:55:35Z | |
| dc.date.available | 2026-10-16T08:55:35Z | |
| dc.date.issued | 2026-06-02 | |
| dc.description.abstract | Given the fact that more than 7Given the fact that more than 70% of privately held family businesses in Ethiopia fail within one year after the founding member dies, this research seeks to investigate the role of succession planning practices in ensuring business continuity in Bole Sub-City, Addis Ababa. An explanatory mixed-method approach was used in the study, whereby the data collected from 86 family businesses (91.5% response rate) was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results point out a looming succession crisis since 71% of the enterprises are in their first generations, 24% in the second generation, and 5% in the third generation. The results from the measurement model show great reliability in which the loading factors are above 0.80 while the Cronbach’s alpha values range between 0.902 and 0.981. The structural model showed great explanatory power for Leadership Continuity (R² = 0.824), Operational Continuity (R² = 0.657), and Organizational Sustainability (R² = 0.809). From hypothesis testing, it was found that Formal Succession Planning, Successor Development, and Stakeholder Communication significantly contribute to business continuity while Family Governance Structures were negatively related to Organizational Sustainability. In summary, this study reveals that there is an urgent need for action regarding the succession gap. The authors suggest that family business owners formulate plans with defined time frames, develop their successors, and involve successors in stakeholder relations. At the same time, governments must organize nation-wide campaigns and offer tax advantages for succession planning, and chambers of commerce need to provide mentorship and training services. Future research on the topic needs to consider wider geographical coverage of the country and use longitudinal methodology. 0% of privately held family businesses in Ethiop | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/9161 | |
| dc.language.iso | en | |
| dc.publisher | Addis Ababa Uinversity | |
| dc.subject | Succession planning | |
| dc.subject | family business | |
| dc.subject | business continuity | |
| dc.subject | organizational sustainability | |
| dc.subject | Ethiopia | |
| dc.subject | PLS-SEM | |
| dc.subject | successor development | |
| dc.subject | family governance | |
| dc.title | The Role of Succession Planning Practices in Ensuring Business Continuity in Ethiopian Family-Owned Businesses: in the case of Bole Sub City, Addis Ababa, Ethiopia” | |
| dc.type | Thesis |