The Effect of Igbo Inheritance Culture on Management Succession in Private Indigenous Enterprises in South Eastern Nigeria

Abstract

This study investigated private indigenous enterprises in South Eastern Nigeria within the context of Igbo inheritance culture. Of particular interest is the continuity and performance of these enterprises. Many of these enterprises which are important contributors to wealth and employment creation, disappear from the business scene or experience significant decline upon the death or incapacitation of their founders. One issue that can help to account for the scarcity of long-established firms is the crisis of management succession. This study therefore sought to determine the effect of Igbo inheritance culture on management succession process; determine the effect of Igbo inheritance culture on enterprise continuity; determine the extent of relationship existing between factors associated with primogeniture (first born); and to determine the effect of gender-restrictive inheritance culture and multiple heirs’ inheritance. The research was conducted using survey design. The population of the study was 750 owner-founders/managers, middle managers and senior staff from the 44 private indigenous enterprises selected for the study. These 44 enterprises were selected from the 436 enterprises that registered with the States’ Ministries of Trade, Commerce and Industry in South Eastern Nigeria. A sample size of 511 respondents was drawn from the population using Tara Yamane’s sample size formula. A stratified sampling technique was also used to determine the proportionate allocation of questionnaire to owner-manager, middle managers and senior staff. The instruments used for data collection were the structured questionnaire, interview schedule and empirical research findings from available related literature. The reliability of the instrument was done through test-retest method. The result gave a reliability index of 0.96, indicating a high degree of consistency. The data collected from the field were presented in percentages and analyzed with descriptive statistics to answer the research questions while corresponding hypotheses were tested using Z – test statistic at 0.05 alpha level. The study found that Igbo inheritance culture had a negative effect on management succession process; Igbo inheritance culture had a negative effect on enterprise continuity (the management succession process in private indigenous enterprises in South Eastern Nigeria, jeopardises rather guarantees the sustainability or longevity of these enterprises); factors associated with primogeniture (first born) rule of inheritance affect management succession process; gender-restrictive inheritance culture had a negative effect on management succession; and multiple heirs inheritance culture had a negative effect on management succession. The conclusion of the study is that management succession is influenced by the Igbo inheritance culture. The principles and practices under-girding customary inheritance culture in Igbo society constitute inappropriate mechanism for intergenerational transfer of ownership. Based on the findings of the study, it was recommended that in order to achieve effective succession in these enterprises, owner-founders should pay ample attention to managing culture; the founder should lay the foundation for a successful entrepreneurial succession and enterprise continuity before his old age or ailment; women should be provided with equal education and access to managerial positions could raise economic growth by as much as one percent. The study’s major contribution to knowledge include: model modification or the development of an improved systems’ cybernetic model of the transform of the culture process captioned: MANAGEMENT SUCCESSION SYSTEMS’ CYBERNETIC MODEL.