Succession Planning and Sustainability of Family-owned Healthcare Businesses

Abstract

This study examined the relationship between succession planning and the sustainability of family-owned healthcare businesses. Family-owned healthcare businesses often face challenges due to changes in management that threaten their continuity and long-term operations, primarily because of inadequate succession planning practices. This research adopted an exploratory desk-based approach and reviewed succession planning through four key dimensions: mentorship programmes, identifying critical roles, assessing employee potential, and employee development plans. Relevant empirical literatures on published articles, journals and studies on succession planning and sustainability in the past 20 years were selected, based on key themes that align with the research objectives. A total of 40 journals were judgmentally sampled for this study. The data generated from the secondary sources were analysed and presented using content evaluation considering the thematic and narrative analysis to bring out nuanced opinions and viewpoints as well as interpretations. The study found that effectual succession planning improves business sustainability by fostering continuation in leadership, reviving organizational reliability, and assuring uninterrupted
healthcare service delivery. The findings also note that detailed mentorship and development initiatives play a significant role in prepping successors ahead for future leadership responsibilities. The study recommends that family-owned healthcare businesses: (1) institutionalise formal mentorship programs to facilitate structured knowledge transfer; (2) systematically identify and document critical leadership roles to enhance accountability; (3) conduct regular employee potential assessments using standardised tools; and (4) prioritise comprehensive employee development plans that include individualised professional
development and continuous learning opportunities. The study concludes that the embracement of consciously incorporated succession planning practices is necessary for sustaining family owned healthcare businesses over the long term.