ABSTRACT

Nigeria’s economy is dominated by Small and Medium Enterprises (SMEs) in Agriculture, Manufacturing, Commerce, Industry and Services. Despite the active involvements by SMEs in Nigeria economy. High mortality rate among SMEs is a matter of major concern. The main purpose of the study is to determine impact of leadership styles on succession planning in SMEs in Lagos state, Nigeria. The study specifically determined impact of (i) directive, (ii) transformational, (iii) participative and (iv) transactional leadership on succession planning in SMEs.

This study adopted an explanatory research. The population of the study was 11,663 registered SMEs in Lagos state. The study used simple random sampling technique to select the sample size of 387out of the total population of 11,663 registered SMEs in Lagos state. Data obtained were analyzed and presented using both descriptive and inferential statistics. Regression analysis was used to test the hypotheses.

The study comes out with the following findings: (i) (R=0.812, R²=0.659, (0.000) <0.5). This implies that 65.9% variation in the dependent variable (succession planning) is explained by the independent variables used in the model. (ii) (R=0.806, R²=0.649, (0.000) <0.5) this Indicates that the model as fitted explains 64.9% of the variability in succession planning (iii) (R=0.535, R²=0.287, P (0.000) <0.5). This implies that 28.7% variation in the dependent variable (succession planning) is explained by the independent variables used in the model. (iv) (R=0.778, R²=0.605, P (0.000) <0.5). Indicates that the model as fitted explains 60.5% of the variability in succession planning.

The study concludes that directive, transformational, participative and transactional leadership are major and significant determinants of succession planning in SMEs. It is therefore important for organization to build a culture of strong leadership whereby employees show effective leadership at all levels and leaders should teach and mentor their followers and show faith in their capabilities to succeed.

TABLE OF CONTENT

Title Page                                                                                                                                i

Certification Page                                                                                                                   ii

Declaration                                                                                                                              iii

Dedication                                                                                                                              iv

Acknowledgment                                                                                                                   v

Abstract                                                                                                                                  vi

Table of Contents                                                                                                                   vii       

List of Tables                                                                                                                          x

List of Figures                                                                                                                         xi

List of Appendices                                                                                                                 xi

CHAPTER      ONE                                                                                                               

INTRODUCATION                                                                                                              1

1.0              Introduction                                                                                                                1         

1.1       Statement of the Problem                                                                                           2

1.2       Research Questions                                                                                                     2

1.3       Objectives of the Study                                                                                              3

1.4       Research Hypotheses                                                                                                  3

1.5       Significance of the Study                                                                                           4

1.6       Scope of the Study                                                                                                     4

1.7       Organization of the Study                                                                                          4

CHAPTER      TWO                                                                                                              

LITERATURE REVIEW                                                                                                      6

2.1       Introduction                                                                                                                6

2.2       Conceptual Framework                                                                                               6

2.2.1    Concept of Leadership                                                                                               6

2.2.2    Leadership Styles                                                                                                        7

2.2.3    Concept of Succession Planning                                                                                 10

2.2.4    Concept of SMEs                                                                                                       14

2.2.5    Characteristics and Role of SMEs in Economy                                                          17

2.2.6    Leadership Effectiveness                                                                                            19

2.3       Directive Leadership and Succession Planning                                                          22

2.4       Transformational Leadership and Succession Planning                                              24

2.5       Participative Leadership and Succession Planning                                                     26

2.6       Transactional Leadership and Succession Planning                                                    27

2.7       Theoretical Framework                                                                                               28

2.7.1    Situational Theory                                                                                                       28

2.7.2    Trait Theory                                                                                                                29

2.7.3    Great Man Theory                                                                                                       29

2.7.4    Theory Adopted For the Study                                                                                  30

2.8       Empirical Framework                                                                                                  30

2.8.1    Research Gap                                                                                                              30

2.9       Conceptual Mode for the Study                                                                                 33

2.9.1    Review of Variables                                                                                                   33

CHAPTER THREE                                                                                                               

RESEARCH METHODOLOGY                                                                                          35

3.1       Introduction                                                                       &n