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  • 标题:The impact of personal culture on sophisticated succession planning by owner-managers of SMEs in Malaysia.
  • 作者:Ndubisi, Nelson Oly
  • 期刊名称:Academy of Entrepreneurship Journal
  • 印刷版ISSN:1087-9595
  • 出版年度:2010
  • 期号:January
  • 语种:English
  • 出版社:The DreamCatchers Group, LLC
  • 摘要:With baby boomers coming to an age of retirement and shortage of younger employees stepping up in replacement, business succession planning is vital in cultivating capable management executives who are going to implement strategies and achieve corporation objectives (Huang, 2001). At times of unexpected death or resignation of executives, succession management serves as crucial part of human resources strategy; assuring suitable leaders are ready for appointment. Thus, only with good succession planning can firms ensure long-term business survival (Caudron, 1996). Although the importance of succession planning has been repeatedly expressed, many organizations still do not take business succession planning seriously. A survey done by Caudron reveals surprisingly that only 22% of 502 respondents agreed to the statement "My organization has a welldeveloped management succession system" (Kur and Bunning, 2002). The scenario is identical in Malaysia. For Malaysian organizations, many focus entirely on hiring and training workforce and neglect succession planning (Fatt, 2004).
  • 关键词:Business creativity;Employee incentives;Employee motivation;Entrepreneurship;Small and medium sized companies;Succession planning (Business)

The impact of personal culture on sophisticated succession planning by owner-managers of SMEs in Malaysia.


Ndubisi, Nelson Oly


INTRODUCTION

With baby boomers coming to an age of retirement and shortage of younger employees stepping up in replacement, business succession planning is vital in cultivating capable management executives who are going to implement strategies and achieve corporation objectives (Huang, 2001). At times of unexpected death or resignation of executives, succession management serves as crucial part of human resources strategy; assuring suitable leaders are ready for appointment. Thus, only with good succession planning can firms ensure long-term business survival (Caudron, 1996). Although the importance of succession planning has been repeatedly expressed, many organizations still do not take business succession planning seriously. A survey done by Caudron reveals surprisingly that only 22% of 502 respondents agreed to the statement "My organization has a welldeveloped management succession system" (Kur and Bunning, 2002). The scenario is identical in Malaysia. For Malaysian organizations, many focus entirely on hiring and training workforce and neglect succession planning (Fatt, 2004).

On the other hand, individual culture of leaders plays an important role in determining the complexity of a succession planning system of an organization. Ironically, individual culture is rarely investigated in the area of business succession planning. Thus, this leads to the question of does individual cultures have impact on the sophistication of succession planning program in Malaysia SMEs? This study attempts to determine the individual cultures of SMEs, as well as to measure the degree of sophistication of succession planning system employed by SMEs in Malaysia. For this research, only small and medium enterprises (SMEs) in Malaysia are taken into consideration. Classification of an SME in this research follows (Saleh & Ndubisi, 2006): organizations with full time employees not exceeding 150 or annual sales turnover not exceeding RM 25m.

LITERATURE REVIEW

Succession Planning Program

In general, scholars consent that a sophisticated succession system should include these critical elements; a statement of strategic vision (Huang, 2001); a planning database (Pattan, 1986); honest and open communication channel (Shulman, 1991); supportive management staff (Nahorney, 1992); systematic approach in identifying potential succession candidates (McElwain, 1991); rewarding managers for promoting best employees (McElwain, 1991); and participation, feedback and action (Getty, 1993).

Nonetheless, the degree of sophistication of succession planning system varies across business firms (Huang, 2001). Researchers in the past have come out with different items of succession planning systems. It has also been argued that firms in varying sectors will have distinctive succession plan differing in size (Barry and Jacobs, 2006). While studies of succession planning system have been conducted, none have examined the relationship between sophistication of succession system and individual culture. Some areas investigated with succession planning program include human resource outcomes (Huang, 2001; Anonymous, 2002) and organizational performance (Friedman, 1986).

In an empirical study, Sahl (1987) divided succession planning program into 5 stages on the basis of skill or sophistication involved. Friedman (1986) in the other hand characterized succession system into 7 elements. Metz (1998) redesigned and re-modelled the succession planning systems and summarized the key items as shown in Table 1.

Huang (2001) investigated the relationship between sophistication of succession programs and human resource outcomes of Taiwan firms. The 10 items used by Huang (2001) in measuring the sophistication of succession system is adopted in this study.

Individual Culture

There are various theories used in defining individual culture including Rokeach Value Survey, Allport and Vernon's (1931) Study of Values, McClelland (1991) Personal Value Questionnaire, Kilmann's insight test (Bilsky & Jehn, 2002) and Schwartz (1994) individual value structure theory. The chosen model for this literature is Schwartz's (1994) individual value structure theory. These values are derived from three universal requirements: biological needs, social needs and welfare needs of groups (Schwartz, 1999). The individual value structure theory has ten distinct value types namely, self-direction, stimulation, hedonism, achievement, power, security, conformity, tradition, benevolence, and universalism (see Table 2). Each type is defined in terms of its central goal and the desired end-state to which it is directed (Schwartz, Sagiv & Boehnke, 2000).

A central feature of Schwartz's theory can also be illustrated and comprised into 4 main sections: Openness to change, Self-Transcendence, Self-Enhancement and Conservation (see figure 1). Comparable value types are in close proximity while competing ones are on opposing sides of the circle (Rice, 2005).

Many studies in the past have applied Schwartz's individual value structure theory in different fields. Schwartz's individual values have been employed to determine the degree of individual culture on the self-perception of employee's creativity in Egyptian organizations. Findings showed that employee creativity is enhanced when self-direction (need for mastery, control and autonomy) is relatively more important to them; whilst stimulation (need for variety) appears to be negatively related to creativity (Rice, 2005).

Another study by Schwartz et al (2000) shows the relationship between the ten distinct values and worries (about its self (micro), society and world (macro)). Their study shows that self-transcendence values are associated with low micro worry and high macro worry, whereas self-enhancement values are associated with high micro worry and low macro worry. In 2006, Schwartz also investigated how demographic variables like age, gender and education can impact these 10 values. The results show that people's values are affected by the level of education they attain. Values promoting persistence through higher education include self-direction, achievement, conformity and tradition. Age on the other hand, correlates more positively with tradition and negatively with other values like self-direction, stimulation, hedonism, achievement and power (Schwartz, 2006).

[FIGURE 1 OMITTED]

Predicting behaviour with values (Schwartz, 2006), Values and the Implication in work (Schwartz, 1999) and Measurement Equivalence of Value across 21 countries (Spini, 2007) are further studies relating to Schwartz Individual Value Structure. In this research, not all the dimensions were employed. Among the 10 values, only 5 dimensions were selected for this research. The chosen constructs and the reasoning for their selection are presented in Table 3. Since past research continues to ignore the possible impact of individual culture on the degree of sophistication of succession planning, this study attempts to fill this gap by examining this relationship using the relevant individual value types.

Past studies support the idea that firms with more sophisticated succession planning systems will experience better organizational performance. Thus, it is assumed in this study that individual culture will have some impact on the sophistication of succession planning program. Using the 5 individual cultures selected above, the following hypotheses were derived:

[H.sub.1]: Achievement culture is positively associated with sophistication of succession planning.

[H.sub.2]: Benevolence culture is positively associatedwith sophistication of succession planning.

[H.sub.3]: Stimulation culture is positively associated with sophistication of succession planning.

[H.sub.4]: Self-direction culture is positively associated with sophistication of succession planning.

[H.sub.5]: Conformity culture is positively associated with sophistication of succession planning.

METHODOLOGY

The methods for data collection are in-office interviews and drop-off surveys. In-office interviews are classified as person-administered surveys, which help to gain feedback and quality control. Drop-off survey was also used to collect information from the directors, who were not on sit or unable to complete the survey form on the spot.

Table 4 shows the items for the constructs. The questionnaire incorporates the Schwartz Value Survey (SVS) (Schwartz, 1994) and Rice (2005) to measure the respective individual values. Items were adapted from Huang (2001) to measure sophistication of succession planning. Five-point Likert Scale ranging from (1) strongly disagree to (5) strongly agree was used to measure the items of personal culture. Sophistication of succession planning was measured on another five-point scale ranging from 1 (not at all) to 5 (very large extent).

The list of SMEs in Malaysia was collected from the SMIDEC website, an SME information and advisory centre. Since the majority of SMEs in Malaysia operate in Kuala Lumpur (KL) and Selangor, SMEs located in Selangor and KL areas were the target population for this survey. The samples were selected from the list based on a simple random sampling method.

RESULTS AND DISCUSSION

The descriptive statistics of respondents are summarized below. Demographic data show that the number of male-female respondents is quite evenly distributed. Male respondents represent 49.5% of those surveyed and female respondents represent a slightly higher percentage at 50.5%. Approximately half of the respondents (48.6%) belong to age category of 21-30. Among those surveyed, majority are from the services industry (68%). Number of employees and company's annual turnover are 2 criteria used in the research to define SMEs. Although analysis results show a few respondents do not satisfy both criteria, for company to be classified as SME, at least one criterion has to be fulfilled. Thus, all companies surveyed are qualified as SMEs satisfying either one or both criteria.

A reliability test was conducted to evaluate the Cronbach's Alpha values for all dimensions to ensure items grouping for the respective dimensions have acceptable internal consistency. A summary descriptive statistics of the dimensions and reliability estimates are shown in Table 6.

Lower limit of reliability ([alpha] = 0.60) identified by Hair, Anderson, Tatham and Black (1998) was used in this study. After performing reliability test, all dimensions for individual cultures and succession planning have alpha coefficient higher than the lower limit of acceptability ([alpha] > 0.60), suggesting a high level of reliability.

Regression Analysis was used in testing for associations between variables. To test for relationship between individual culture variables and sophistication of succession planning, multiple regression tests was conducted.

Table 7 shows the summarized results of the multiple regression analysis for individual culture and succession planning. The results show that 5 dimensions of individual culture collectively contribute significantly to the degree of sophistication of succession planning (F=10.553; p-value=0.000). [R.sup.2] value of 0.348 indicates that 34.8% of the variation in succession planning sophistication is explained by individual culture. Table 5 also shows that only 2 dimensions of individual culture (Stimulation, Conformity) are significantly related with sophistication of succession planning while the rest indicate no significant relationship with dependant variable at 5% significance level. Therefore H3 and H5 are accepted whereas H1, H2 and H4 are rejected.

IMPLICATIONS AND CONCLUSIONS

The outcome of this study shows that owner/manager's personal culture is important in explaining the degree of sophistication of succession planning adopted by SMEs in Malaysia. Also, the result builds on past research outcomes concerning succession planning sophistication and its drivers in small and medium-size enterprises. Theoretically, this research confirms that individual culture has a direct impact on the degree of sophistication of succession planning by small firms. However among the dimensions examined, only certain dimensions (i.e. stimulation and conformity) show significant relationship with sophisticated succession planning at 5 percent significance level, while others either show marginal relationship (e.g. achievement) or are not statistically associated with sophistication of succession planning (e.g. self direction and benevolence).

Stimulation is the most important dimension of individual culture that explains sophisticated succession planning in Malaysian SMEs. Stimulation deals with varied, exciting and daring nature of the owner-manager. This means that the degree of sophistication of the succession plan depends on how willing and daring the owner-manager of the SME is. In other words, the extent to which the owner-manager is willing and excited about developing or nurturing his/her subordinates has an impact on how sophisticated his/her plans for succession would be. The notion that many managers are not excited about developing subordinates for fear of losing their place to them has been documented in the succession planning literature. Due to such insecurity, some managers shy away from preparing future leaders early enough resulting in last minute half-hazard training and eventual hand-over to an ill prepared successor. The consequences of this adhoc, non-systemic planning range from (on the job) long learning curve to organizational failure due to incompetent management. Hence, if SMEs wish to deploy a sophisticated succession plan successfully, CEOs should be excited about grooming subordinates in a systematic manner. This endeavour, of course involves an element of risk, which demands some degree of risk-tolerance and willingness to face challenges on the part of the owner-manager. The risk element is regarding the possibility of a groomed and ready successor leaving the organization for a more lucrative appointment elsewhere just before he/she takes over the helm of affairs. This can mean a significant loss to the firm in terms of training costs (incurred on the departing executive), cost of finding a new replacement (and also training him/her), other costs associated with low productivity of the (new) replacement especially during the early stages of assuming office and making the necessary adjustments. On the flip side, the upside of this is that sophisticated succession planning can minimize the risk of costly and lengthy search for a new replacement as more than one successor are usually groomed in a proper sophisticated succession planning system. Thus, altogether, sophisticated succession planning can immensely benefit managers who have it in place.

Another significant cultural dimension is conformity. Conformity deals with politeness, honor, and self-discipline. The import of this outcome is that owner-managers need discipline and respect for subordinates, in order to develop sophisticated succession plans. Politeness towards potential successors and honoring others are key qualities of managers who have sophisticated succession plan in place. They recognize that followers especially those next in hierarchy has what it takes to take over and lead. They see the potential in followers to assume leadership roles and see themselves as dispensable. A key reason why many owner-managers do not plan for succession early enough is to make them indispensable; this may be because of their own insecure. Consequently, they develop either superiority or inferiority complex, which discourages them from identifying potential successors and grooming them. However, polite managers, those that honour others and those that have self discipline, will plan for succession by recognizing subordinates that are leadership materials, groom them and gradually release them into the positions. By the time the incumbent is finally ready to depart, the successor is already familiar with the new position and ready to act independently. This ensures continuity and stability of the enterprise. Hence, CEOs and management executives should recognize the salience of stimulation and conformity factors to successfully instate sophistication into their succession plans.

Achievement has a marginal impact on sophisticated succession planning. Entrepreneurs are known to have a high need for achievement. This achievement need and need for continuity plausibly explains the degree of sophistication of succession planning in SMEs. Great achievers desire continuity of good outcomes, they do not like to live in the past. For them, each day has its own new opportunities to exploit and challenges to overcome. Such achievement motivation is shown in the study as a factor not to ignore why owner-managers of SMEs in Malaysia plan for succession to a sophisticated degree.

However, individual culture dimensions such as benevolence and self-direction show no significant association with sophistication of succession planning, albeit the direction of the estimates are as predicted. This indicates that succession planning can increase with benevolence and self direction, but are not major or significant drivers of the former. Thus, CEOs who are lacking in these values are still able to design a succession planning system of high sophistication.

The findings of this study have implications for personnel in charged of succession planning system development in organizations. Since sophisticated succession planning is allied with good succession outcome, SMEs should put up detailed succession plans. Our study indicates that CEOs of firms that deploy sophisticated succession planning score high in stimulation and conformity and marginally in achievement need. Such virtues should therefore be encouraged among executives and included in executive development programmes.

In sum, succession planning is highly rewarding, in many ways. Depending on the degree of its sophistication, benefits include personnel development; successful delegation of responsibility; executive review, auditing and follow-up; management involvement in succession procedure; assessment and reward for efforts in subordinates nurture; compiling of information on staffs and job position for succession and development purposes; discouragement of nepotism and favouritism; employees motivation through rewarding of achievements, experiences and ability; and so on. These benefits as the study shows will accrue to those owners or managers who have sophisticated succession plans. The study also shows that CEOs who are characterized by stimulation, conformity and achievement motivation tend to do it better.

REFERENCES

Allport, G.W. & Vernon, P.E. (1931), Study of values: A scale for measuring the dominant interests and personality, Houghton Mifflin, Boston.

Anonymous (2002), "Good selection is route to sustaining success", Human Resource Management International Digest, 10(3), 8-10.

Barry, I. & Jacobs, G. (2006), "Business succession planning: a review of the evidence", Journal of Small Business and Enterprise Development, 13(3), 326-350.

Bilsky, W. & Jehn, K.A. "Organizational culture and individual values: evidence for a common structure", http://miami.uni-muenster.de/servlets/DerivateServlet/ Derivate-1535/Bilsky_Jehn.pdf, viewed on 29th August, 2007.

Caudron, S. (1996), "Plan today for an unexpected tomorrow", Personnel Journal, 75(9), 40-45.

Fatt, C. K. (2004), "Planning for Succession", PriceWaterHouseCooper, http://www.pwc.com/extweb/manissue.nsf/DocIDIndustry/ 2C3CFD1175F2965DCA256EDF002 68D78, viewed 20 August, 2007.

Friedman, S.D. (1986), "Succession systems in larger corporations: characteristics and correlates of performances", Human Resource Management, 25(2), 191-213.

Getty, C. (1993), "Planning successfully for succession planning", Training and Development, 47(11), 31-33.

Hair, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1998), Multivariate Data Analysis with Readings, Macmillan, New York, NY.

Huang, T.C. (2001), "Succession management systems and human resource outcomes", International Journal of Manpower, 22(8), 736-747.

Kur, E. & Bunning, R. (2002), "Assuring corporate leadership for the future", Journal of Management Development, 21(10), 761-779.

McClelland, D.C. (1991), The personal value questionnaire, McBer & Company, Boston.

McElwain, J.E. (1991), "Succession plans designed to manage change", HRMagazine, 36(2), 67-71.

Metz, E.J. (1998), "Designing Succession Systems for New Competitive Realities", Human Resource Planning, 21(3), 31-37.

Nahorney, D.J (1992), "Passing the torch: Proper Succession Requires Planning", Managers Magazine, 67(10), 8-9.

Ndubisi, N.O. (2008), "Gender Differences in Entrepreneurial Traits, Perceptions and Usage of Information and Communication Technologies, Academy of Entrepreneurship Journal, 14(2), 107-121.

Pattan, J.E. (1986), "Succession Management, 2 management selection", Personnel, 63(11), 24-34. Rice, G. (2005), "Individual values, Organizational Context, and self-perceptions of employee creativity: Evidence from Egyptian organizations", Journal of Business Research, 59, 233-241.

Sahl, R.J. (1987), " Succession planning--a blueprint for your company's future", Personnel Administrator, 32(9), 101106.

Saleh, A.S. & Ndubisi, N.O (2006), "An Evaluation of SME Development in Malaysia", International Review of Business Research Papers, 2(1), 1-14.

Schwartz, S.H. (1994), "Are there universal aspects in the structure and contents of human values?", Journal of Social Issues, 50(4), 19-46.

Schwartz, S.H. (1999), "A Theory of Cultural Values and Some Implications for Work", Applied Psychology: An International Review, 48(1), 23- 47.

Schwartz, S.H. (2006), "Basic Human Values: An Overview on Theory, Methods and Applications", http://www.fmag.unict.it/ Allegati/convegno%207-8-10-05/Schwartzpaper.pdf, viewed on 29th August 2007.

Schwartz, S.H., Sagiv, L. & Boehnke, K. (2000), "Worries and Values", Journal of Personality, 68(2), 309-346.

Shulman, M.G. (1991), "Successful succession planning", CA Magazine, 124(7), 43-45.

Spini, D. (2007), "Measurement equivalence of 10 value types from the Schwartz value survey across 21 countries", Journal of Cross-Cultural Psychology, 34(1), 3-23.

Nelson Oly Ndubisi, Nottingham University Business School
Table 1: Key Shifts in Succession Planning Model

From                                To

Groom a backup for each position    Develop pools of broadly
                                    qualified candidates; have
                                    position pools

Specialty disciplines in            More broadly disciplined
candidates                          candidates

Business unit autonomy              More centralization and
                                    integration of systems and
                                    information

Siloed career growth                Cross-boundary fertilization to
                                    develop broader skills and
                                    perspectives

Largely human resources driven      Largely line driven

Subjective and informal criteria;   Strategic competencies and models
personality/image oriented          define success; 360 degree
                                    feedback

Technical competence a key factor   Cross-functional management
                                    capability; quick learner; manage
                                    change

Tolerate marginal performers        Fewer positions for development
                                    requires removing marginal
                                    blockers

Company directs and controls        Individual sets career direction
career

Controlled and confidential         Input from multiple sources; more
process                             open planning and development
                                    process

"Promises"                          No "Promises"

Focus on training and seminars as   Sequential job assignments
primary development vehicle         provide primary development
                                    experience supplemented by
                                    specific training

Take advantage of vacancies to      Create assignments for
promote candidates                  development (e.g., exchanges,
                                    trades, special projects)

Promote from within when fully      Promote when about 70% qualified;
qualified                           hire less experienced talent at
                                    every entry level

Source: Metz, (1998)

Table 2: Individual Value Structure Theory

Value Type       Defining Goal

Self-direction   Independent thought and action--choosing, creating,
                 exploring

Stimulation      Excitement, novelty, challenge in life

Hedonism         Pleasure or sensuous gratification for oneself

Achievement      Personal success though demonstrating competence
                 according to social standards

Power            Social status and prestige, control or dominance
                 over people and resources

Security         Safety, harmony, and stability of society, of
                 relationships and of self

Conformity       Restraint of actions, inclinations and impulses
                 likely to upset or harm others and violate social
                 expectations or norms

Tradition        Respect, commitment, and acceptance of the customs
                 and ideas that one's culture or religion provides

Benevolence      Preserving and enhancing the welfare of those with
                 whom one is in frequent contact ("in-group")

Value Type       Value Items

Self-direction   Creativity, Freedom, Choosing own goals, curious,
                 Independent

Stimulation      A varied life, An exciting life, Daring

Hedonism         Pleasure, Enjoying life, Self-indulgent

Achievement      Ambitious, Successful, Capable, Influential

Power            Authority, Wealth, Social power

Security         Social order, Family security, National security,
                 Clean, Reciprocation of favours, Healthy

Conformity       Obedient, Self-discipline, Politeness, Honouring
                 parents and elders

Tradition        Respect for tradition, Humble, Devout, Accepting my
                 portion in life, Moderate

Benevolence      Helpful, Honest, Forgiving, Responsible, Loyal, True
                 Friendship, Mature Love

Source taken from: Rice, 2005

Table 3: Dimensions of Individual Culture

Selected Dimensions   Reasons

Achievement           Directors with high achievement scores would
                      want better chance of good succession planning
                      development, thus they would take necessary
                      steps to ensure that plan is carried out
                      smoothly.

Benevolence           With high benevolence culture, potential
                      candidates are more likely to get promoted as
                      the director is willing to overlook minor
                      mistakes. Therefore, higher chance for better
                      succession outcome.

Stimulation           Flexible, creative and adventurous directors who
Self Direction        are more adaptable to constant environment
                      changes are presumed to lead a good outcome in
                      succession planning.

Conformity            Directors with self-restriction and order would
                      follow rules accordingly when it comes to
                      succession planning. Thus highly formalized
                      procedures will be followed.

Table 4: Dimensions and Items of the Variables

Variables              Dimensions              Items

Independent Variable

Individual Culture     Conformity              Politeness, Honor,
                                               Obedience,
                                               Self-discipline

                       Achievement             Ambitious, Successful,
                                               Capable, Influential

                       Self-direction          Creativity, Freedom,
                                               Choosing own goals,
                                               Curious, Independent

                       Benevolence             Helpful, Honest,
                                               Forgiving, True
                                               Friendship,
                                               Responsible

                       Stimulation             Varied Life, Exciting
                                               Life, Daring

Dependent Variable

Succession planning    Sophistication degree   Extent to which
                       of succession           procedures of
                       planning                succession and
                                               managerial personnel
                                               development are
                                               formalized

                                               Extent to which
                                               employees and
                                               organizational units
                                               delegated
                                               responsibility for
                                               succession planning

                                               Extent to which
                                               auditing and follow-up
                                               are exercised in
                                               executive review
                                               process

                                               Extent to which higher
                                               level management are
                                               involved in succession
                                               procedure

                                               Extent to which
                                               departmental leaders
                                               are being assessed and
                                               rewarded for efforts
                                               in subordinates
                                               nurture

                                               Extent to which
                                               compiling of
                                               information on staffs
                                               and job position for
                                               succession and
                                               development purposes
                                               are undertaken.

                                               Extent to which
                                               decision for promotion
                                               is on personal
                                               connections and
                                               network ties basis

                                               Extent to which
                                               selection for
                                               promotion is on past
                                               achievements,
                                               experiences and
                                               ability basis

                                               Members of succession
                                               planning are viewed as
                                               credible and capable
                                               in job performance

                                               Amount of time CEO
                                               dedicates to handling
                                               succession issues

Adapted from: Huang (2001); Rice (2005); Schwartz (1994)

Table 5: Profiles of respondents and Firms

Profile                Descriptions                       Frequency

Gender of respondent   Male                                  52
                       Female                                53
                       Total                                 105

Age of respondent      21-30                                 51
                       31-40                                 33
                       41-50                                 12
                       51 and above                           9
                       Total                                 105

Primary business       Manufacturing                         37
activities             Services                              68
                       Total                                 105

Number of employees    Less than 5                           10
                       5-50                                  72
                       51-150                                15
                       150 and above                          8
                       Total                                 105

Company's annual       Less than RM 1 million                27
turnover               RM 1 million to RM 5 million          40
                       RM 5.1 million to RM 25 million       28
                       More than RM 25 million               10
                       Total                                 105

Profile                Descriptions                       Percent (%)

Gender of respondent   Male                                  49.5
                       Female                                50.5
                       Total                                  100

Age of respondent      21-30                                 48.6
                       31-40                                 31.4
                       41-50                                 11.4
                       51 and above                           8.6
                       Total                                  100

Primary business       Manufacturing                          4.8
activities             Services                               39
                       Total                                  100

Number of employees    Less than 5                            9.5
                       5-50                                  68.6
                       51-150                                14.3
                       150 and above                          7.6
                       Total                                  100

Company's annual       Less than RM 1 million                25.7
turnover               RM 1 million to RM 5 million          38.1
                       RM 5.1 million to RM 25 million       26.7
                       More than RM 25 million                9.5
                       Total                                  100

Table 6: Descriptive statistics and reliability estimates

Dimensions               Number of   Mean    Standard    Cronbach's
                           items             Deviation     alpha

Individual culture

Conformity                   4       4.073     0.621       0.812
Achievement                  4       3.973     0.627       0.834
Self-direction               5       4.114     0.554       0.826
Benevolence                  5       4.200     0.538       0.851
Stimulation                  3       3.701     0.613       0.739

Succession Planning

Sophistication Degree       15       3.857     0.416       0.855
of Succession Planning

Note: N = 105

Table 7: Relationship between Individual Culture and Sophistication of
Succession Planning

Independent Variables   Beta Coefficients   t-value (p-value)

Self-direction               -0.174          -1.305 (0.195)
Stimulation                   0.294           2.628 (0.01)
Conformity                    0.27            2.516 (0.013)
Achievement                   0.237           1.938 (0.055)
Benevolence                   0.108           0.954 (0.343)

Notes: [R.sup.2] = 0.348; F = 10.553; Sig F = 0.000 * p<0.05
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