Abstract

Family businesses contribute significantly to employment, wealth creation and economic development, yet many face continuity and performance challenges where succession is informal, poorly communicated or inadequately integrated with ownership transition, family interests and organizational culture. This study investigated the influence of strategic succession management on the organizational performance of selected family businesses in Mombasa County, Kenya. Specifically, it examined the influence of succession planning, ownership transition, socio-emotional wealth (SEW) and organizational culture on organizational performance. The study adopted a descriptive survey design and was anchored on the Relay Succession Planning Model and Dynamic Capabilities Theory. Data were collected using structured questionnaires administered to 63 employees and managers with knowledge of the selected family businesses, of which 60 were returned, representing a 95% response rate. The study measured succession planning, ownership transition, socio-emotional wealth, organizational culture and organizational performance, with reliability coefficients ranging from 0.750 to 0.904. Data were analyzed using descriptive statistics, correlation analysis, multiple regression and analysis of variance using SPSS. The findings established that succession planning (B = 0.444, p < 0.001), ownership transition (B = 0.101, p = 0.021), socio-emotional wealth (B = 0.612, p = 0.001) and organizational culture (B = 0.104, p = 0.004) positively and significantly influenced organizational performance. The overall regression model was statistically significant (F = 32.048, p < 0.001). The study concludes that strategic succession management is important for strengthening continuity and organizational performance in family businesses. It recommends formal and regularly reviewed succession plans, transparent and legally compliant ownership-transition structures, merit-based leadership development, preservation of constructive family values, and deliberate knowledge-sharing, mentorship and capacity-building practices