The mediating role of succession issues in succession planning, family influence and successor attributes on SME performance in emerging economies

This study examines the mediating role of succession issues in the relationship between succession planning, family influence, successors’ socio-demographic characteristics and the performance of family-owned SMEs in Ghana’s hospitality sector. Drawing on, Upper Echelons Theory and Agency Theory, the study explores how leadership transitions shape organizational outcomes. Data were collected from family-owned SMEs through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling. The findings reveal that succession planning positively influences SME performance, emphasizing the importance of structured leadership transitions. Family influence also contributes significantly to performance but can exacerbate succession issues if not properly managed. The socio-demographic characteristics of successors, such as education and experience, play a critical role in addressing succession challenges and improving organizational outcomes. Furthermore, succession issues mediate the relationships between these factors and firm performance, underscoring the importance of resolving leadership conflicts, enhancing successor preparedness and fostering transparent governance. This study offers actionable recommendations for family business owners, successors and policymakers, including the adoption of formalized succession plans and investment in successor development. This study introduces a novel mediating framework that captures how unresolved succession issues reshape the outcomes of succession issues, offering new theoretical insights into family firm dynamics.