Utilization of Corporate Governance in Succession Planning for Sustainable Family-Owned SMEs in Uganda’s Central Region
Asiimwe Violet Kiguli, Kiyingi Frank Pio & Rukanyangira Nazarious
Nkumba University, Uganda
Email: vasiimwe@nkumbauniversity.ac.ug
Abstract: The study examined how Corporate Governance Strengthens Succession Planning to promote Sustainability in Family-Owned Small and Medium Enterprises in Central Uganda. Objectives were: to explore how Human Resource policy, organizational culture, and employee engagement influence succession planning for sustainable family-owned SMEs in the Ugandan central region, a case of selected family-owned Enterprises. A mixed-methods research methodology was employed, and data were collected using structured questionnaires from 166 respondents, complemented by key informant interviews held with enterprise owners and managers, to survey governance practices, succession planning, and sustainability indicators. Cronbach’s Alpha measured reliability while expert review ensured validity. Correlation and Regression analyzed quantitative data, while qualitative data were thematically analyzed using structural equation modelling. Findings revealed that Human Resource policies significantly predicted successor identification (β = 0.228, P = 0.004) and training (β = 0.121, P = 0.027). While organizational culture supported ethical behavior and transparency, it showed a lower direct influence on sustainability (β = 0.047, P = 0.515). Employee engagement positively predicted successor identification (P = 0.242, P = 0.015), training (β = 0.425, P = 0.001), and sustainability (β = 0.258, P = 0.003); however, a weak influence on communication of succession intent was noted. Corporate Governance indicated a strong positive effect on sustainability (β = 0.492, P = 0.001) while communication of intent emerged was a key predictor (β = 0.209, P = 0.001). Implications for theory and practice indicate that structured HR policies, inclusive governance, and transparent communication are essential for integrating sustainability in family-owned SMEs.
