A PRELIMINARY STUDY ON SUCCESSION PLANNING INITIATIVES TOWARDS KNOWLEDGE RETENTION: A SUSTAINABILITY STRATEGY FOR SMES

Authors

  • Ahmad Fadhly Arham, Mohd Natashah Norizan, Nor Sabrena Norizan, Nuttawuth Muenjohn, Ahmad Firdhaus Arham

Abstract

Understanding knowledge retention is a challenging process. It is becoming more complex when it comes to
Small and Medium-sized Enterprises (SMEs). Due to their size, known limitations and sustainability issue, SMEs cannot
afford the loss of knowledge that might occur due to the retirement or departure of key employees. Thus, a study to analyze
the relationship between succession planning initiatives towards knowledge retention seems to provide practical and
managerial implication for all SMEs, especially within the context of Malaysia. 31 respondents comprising of SME
employees holding a managerial position in Malaysia are surveyed in this preliminary study. The results revealed that SMEs
are aware of the importance of preserving the knowledge within their companies and they have implemented measures to
allow knowledge transfer to occur between employees. Among all six succession planning initiatives, technology was found
to be insignificant towards knowledge retention. Supportive vision and organizational culture are found to have strong
associations towards knowledge retention. Clear career path, top management support and training were found to be have
moderate relationships towards knowledge retention. An improved understanding of these relationships would contribute
to the design of more appropriate strategies for succession planning among SMEs in Malaysia. These initiatives are
important towards the sustainability of the businesses and SMEs in the country.

Published

2020-11-20

Issue

Section

Articles