Analysis on Family Business and Succession Planning in Hotel and Hospitality Sector in Uganda: A Case of White Horse Inn Kabale
DOI:
https://doi.org/10.47672/jht.2494Keywords:
Family Business, Succession Planning, Hotel, Hospitality IndustryAbstract
Purpose: The study was set to examine the relationship between family business and succession planning in hotel and hospitality sector in Uganda, focusing on White Horse Inn Kabale as a case study. The study explored the strategies employed by leaders in family businesses for effective succession planning.
Materials and Methods: The study used a mixed research design with quantitative and qualitative approaches to obtain in-depth information about family business and succession planning strategies in Uganda. Out of 150, a sample size of 108 (including 93 quantitative and 15 qualitative) was selected from different staff of White Horse Inn Kabale as the established family enterprise selected for the study (Krejcie & Morgan, 1970). The tools used for data collection were questionnaires, an interview guide, and documentary checklist. Data was collected from the managerial and non-managerial staff of the White Horse Inn Kabale.
Findings: The Pearson correlation coefficient r=.618, P<0.05 indicates that there is a positive significant correlation coefficient between family business and succession planning. The model summary findings presents that Family Business, β=.618, t=7.666, p<.005. This meant that a unit change in family business would lead to an increase in succession planning in White Horse Inn Kabale. The study findings reveals that the relationship between Family Business and Succession Planning was statistically significant, F=58.775, P<0.05. This means that succession planning in a family business is a crucial process that ensures the long-term sustainability and success of the company. The results from regression model summary explain that family business caused a variation of 38.2% in succession planning. This indicates that succession planning in a family business is a crucial process that ensures the long-term sustainability and success. This therefore means that other factors not studied in this research contribute 61.8% of the succession planning.
Implications to Theory, Practice and Policy: The study recommends that family business should formally document succession plans as an integral component of the business strategy, irrespective of the intentions regarding succession. Furthermore, fostering open and adaptable communication that promotes participatory decision-making is strongly recommended. A clear process for identifying essential competencies, along with a competency catalog, should be established to provide a solid foundation for business owners to evaluate potential successors, pinpoint competency deficiencies, and devise suitable plans for their development.
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