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http://dx.doi.org/10.5392/JKCA.2021.21.02.489

An Effects of Succession Plan on Organizational Performance  

Son, Yong-Won (국도화학 인사운영팀)
Shin, Soo-Young (영남대학교 경영학과)
Publication Information
The Journal of the Korea Contents Association / v.21, no.2, 2021 , pp. 489-498 More about this Journal
Abstract
The previous researches on the succession plan have the limitation that it has focused on policies or systems at the government level to facilitate succession, or is limited to family companies. In this study, we would like to analyze the effect of the actual utilization of the succession system for small and medium-sized enterprises rather than the succession by direct families or the government's policies. We would also like to identify other situational factors that may affect this relationship to better understand the succession plan and its relationship with organizational performance. To this end, the analysis of 172 small and medium-sized enterprises in the Human Capital Enterprise Panel showed that the more practical the succession plan of small and medium-sized enterprises is used, the more positive the organizational performance is. These results suggest that small and medium-sized enterprisess succession plan can have a positive impact on organizational performance, such as implicit transfer and formation of positive impressions of companies. Furthermore, cooperative industrial relations strengthened the degree of utilization of succession plans and the positive relationship with organizational performance. Such results showed that the more cooperative the labor-management relations are, the more the successor can secure legitimacy in the process of succession planning based on trust between labor and management.
Keywords
Succession Plan; Small and Medium-sized Enterprises; Cooperative Industrial Relations; Performance;
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