Factors Affecting Business Performance after the Transfer of Leadership Generation in Small and Medium Enterprises

Abstract

The aim of this study explores the factors affecting business performance after leadership generation transfer in small and medium-sized enterprises, set in the context of small and medium enterprises in the North of Vietnam. The study focuses on three main driven factors affecting business performance after the transfer of leadership generation in small and medium enterprises: CEO transition plan and process; How to select a successor; The characteristics of the successor. The research sample was taken from the context of small and medium enterprises in the North of Vietnam. For questionnaire administration, interviewees are selected at random from the population. Face-to-face, drop-off, and phone-calling approaches were used to disseminate the questionnaire. We received 938 completed returns out, the data was then cleaned and analyzed with SPSS software using Structural Equation Modelling (SEM). Research shows that succession of three impact factors is closely related to the success of the transition and business performance after the transfer of leadership generation. Through data analysis, research shows that businesses need to choose their successors through fair competition to find the best candidate to be appointed as a leader, ensuring the success of the transition process. The findings of the research provide policymakers with valuable insights on the effects of factors affecting business performance after the transfer of leadership generation in small and medium enterprises. The study's recommendations can inform policies that promote sustainable economic development after the transfer of leadership generation.  In Vietnam, there are not many studies showing the importance of leadership transfer and analyzing the factors affecting leadership transfer, so through the impact factors of this study, leaders can easily find suitable solutions to select the next generation of leaders with high quality.