[01] John N. N. Ugoani, College of Management and Social Sciences, Rhema University, Aba, Nigeria.

A family business refers to one that is owned and controlled by one or more families. Such businesses are usually under the overbearing influence of the founder who mostly runs away from agency costs by the unwillingness to involve professional agents. Such family businesses though often profitable have always suffered setbacks due to the absence of definite succession plans that would ensure their survival. Some polygamous founders adopt what can be described as the kitchen model to evolve succession. The research designed to explore the challenges of succession among family businesses adopted the survey method. 350 respondents were asked to fill researcher designed questionnaire about aspects of managerial technique. Personal interview was also conducted to supplement data generated. Data were analyzed through ANOVA. It was found that the absence of succession plan has negative effect on the success of family businesses. Six recommendations were made based on the result.

Family Business, Succession, Agent-Led, Owner-Led, Kitchen Model, Polygamous

[01] Aganga, O. (2012), Nigeria has about 17.3m SMEs. The Nation, Vol.7, No. 2143, pp. 12. Aganga, O. (2013) How banks. [02] Misappropriated N200bn loan restructuring facility – FG Daily Sun Vol. 10, No. 2578, pp 41. [03] Akanwa, P. U. (1997), Fundamentals of Human Resource Management in Nigeria Owerri, Kosoko Press Limited. [04] Akbar, M & Joshi, M (2012), Endogenous Agency Problems, Their Impact and Mitigation in privately- held Family Firms for Sustaining Growth. Amity Business Journal, Vol. 1, No. 2, pp, 20 – 31. [05] Anderson, R. C and Reeb, D. M (2003) Founding family ownership and firm performance: evidence from the S & P 500. The Jounal of finance, Vol. LVIII, No. 3, pp 1301-1328. [06] Ang. J. S, Cole, R. A, and Lin, J. W, (1997) Agency cost and ownership structure. The Journal of finance. Vol. LV, No. 1 pp. 81-106 [07] Barth, E. Gulbrandsen, T. and Schne, P. (2005), Family Ownership and productivity: The Role of owner management. Journal of Corporate Finance, 11, pp. 107 – 127. [08] Birley, S. Ng. D. & Godfrey, A. (1999), The Family and the Business long range planning, 32(6) 598 – 608. [09] Denis, D. J. & Denis, D. K. (1994), Majority Owner-Managers and Organizational Efficiency. Journal of Corporate Finance, Vol. 1, pp. 91 – 118. [10] Durand, R & Vargas, V. (2003), Ownership, Organization, and Private Firms’ Efficient Use of Resources, Strategic Management Journal, Vol. 24, pp. 667 – 675. [11] Hofer, C. W. & Charan, R. (1984), The Transition to Professional Management: Mission Impossible American Journal of Small Business. Summer, 1984:3. [12] Jensen, M. C. & Meckling, W. H. (1976), Theory of Firm, Managerial behavior, Agency Costs and Ownership Structure. Journal of Financial Economics. Vol. 3, No. 4, pp. 305 – 360. [13] Jones, G. R, and George, J. M. (2003) Contemporary Management. 3rd Edition, USA McGraw-Hill, Irwin. [14] Kalu, O, (1986), The Challenge of Industrialization in Nigeria – A Personal Insight. Aba Basic Trust Ltd. [15] Lagos Organization Review (2006) Vol. 2 No. 4, pp 69.74. May –July. [16] Mathis, R. L. & Jackson, J. H. (1994), Human Resource Management. 7th Edition, USA, West Publishing Company. [17] Nelson, T. (2003), The Persistence of Founder influence, Management, Ownership and Performance Effects at Initial Public Offering. Strategic Management Journal. Vol. 24, pp. 707 – 724. [18] Nickels, W. G, McHugh, J. M and McHugh, S. M (2005) Understanding Business. 7th Edition, USA McGraw-Hill, Irwin. [19] Okenwa, C. P. (1999), Entrepreneurship Development in Nigeria. Onitsha, Adson Education al Publishers. [20] Omuruyi, F, (2013), Debe not Ojukwu’s son, Ikemba’s brother tells court; as three tussle with family over 19 properties. Daily Sun, Vol. 10, No. 2577, pp. [21] Osehobo, V, (2002), 67 Million Youths Unemployed-Minister Nigerian Pilot Vol. 2, No. 154, pp. -2. [22] Pearce, II, J. A. & Robinson, Jr, R. B. (2003)Strategic Management, Implementation and Control, 8th Edition. New York, McGraw-Hill Higher Education. [23] Princeton University (2007), Wordnet Princeton. Edu/Per Schumpter, J. (1934), The Theory of Economic Development, Cambridge Mass. Harvard University Press. [24] Schumpter, J. (1954), History of Economic Analysis, New York, Oxford University Press. [25] Sharma, P. (2004), An Overview of the Field of Family Business Studies: Current Status and Directions for the future. Family Business Review, 17(1), 1 – 36. [26] Stevenson, H. H. & Gumpert, D. E. (1985), the Heart of Entrepreneurship. Harvard Business Review, March – April, 1985: 85. [27] Tripathi, D. (2004), The Oxford History of Indian Business Oxford University Press, 2004. [28] Willard, G. E, Kueger, D. A, and Feeser, H. R, (1992) In order to grow the founder must go: a comparison between founder And non-founder managed high growth manufacturing firms. Journal of Business Venturing, Vol. 7, pp 181-194.