© MAR 2022 | IRE Journals | Volume 5 Issue 9 | ISSN: 2456-8880 IRE 1703232 ICONIC RESEARCH AND ENGINEERING JOURNALS 27 Succession Planning as A Panacea to SMEs, Becoming A Generational Enterprise in Nigeria: The Moderating Role of Organizational Culture DR. SALAU, ADEYEMI NURUDEEN Research Fellow, Ladoke Akintola University of Technology, Ogbomosho, Oyo state Abstract- Succession planning is the process of transferring control from owners to the successor in an organization. Small and Medium Enterprise sectors that are seen to be major contributors to job creation and Gross Domestic Products are bedeviled with the lack of succession planning on the death/retirement of the owner. Small and Medium Enterprises Development Association of Nigeria report in 2017 indicated that over 2.783m SMEs were temporarily closed down due to the death/sickness of the owners. This figure threatens the sustainability, future performance and ability to have a generational enterprise in the sector. Therefore, the study examines the effect of succession planning on SMEs performance. The study employed a survey research design and multi-stage sampling technique to select a sample size of 207 SME registered members with National Association of Small and Medium Enterprise in Lagos State. Consequently, only 185questionnaires were duly completed and returned. Descriptive statistics was used to analyse collected data. Pearson Product Moment Correlation Coefficient was used to determine the relationship between talent and reward management variables and SME performance. Multiple Regression analysis was used to evaluate the significant effect among training and development variables and the moderating effect of organisational culture on the relationship between succession planning and SME performance. The study concludes that succession planning is determined by talent management, reward management and training and development, and exert significant effect on SMEs performance. It is recommended that SME owners formulate and implement policies for effective succession planning, enhanced performance and sustainable economic development. I. INTRODUCTION Succession planning has continued to receive attention not only as a concern for the management of human resources, but also as institutional strategic management component for ensuring performance and growth across the globe. Traditionally, succession planning has been used to prepare new leaders for governing nations and large family-owned businesses; it also helps to ensure that a well-trained cadre of leaders is available to step in where and when the need arises (Cole and Harbour, 2015). The thoroughness and vigor of today’s succession planning will not only determine the future performance of any company but leads to generational enterprise. However, Succession planning in small scale business is associated with the transfer of ownership and management to the next generation (Akpan and Ukpai, 2017) which is largely caused by lack of talent management, reward management, career development, training and development of potential successor. Business is operating in a dynamic, complicated and insecure environment that may cause unpredictability in the organization performance, therefore, every organization that intends to adapt with all the changes must applied a proper approach to retain their employees. SMEs can use talent management to build winning teams which will be formed by talented people; the team can be used to solve problems or weaknesses in their business because they are competent and experienced. When talent management practices are not in place attracting, retaining and nurturing talented employees in SMEs for its benefits becomes a big challenge. Thus, talent management is one of the components of succession planning practice.