How Succession Planning Quality and Successor Leadership Style Shape Performance in Family Healthcare Businesses
- AIOR Admin
- Dec 23, 2025
- 2 min read
Muhammad Lutfi Aziz, Yudo Anggoro
Institut Teknologi Bandung, Indonesia
The succession of leadership is a most important strategic issue facing family healthcare businesses especially when founder-doctors are retiring to professional managers. The present research is aimed at investigating the impact of the quality of succession planning and successor leadership style on the organizational performance, the employee performance is a possible mediating variable, in Indonesian family clinics experiencing the first to the second generation of leadership transitions. A quantitative approach was adopted based on the Social Exchange Theory, the Resource-Based View and Transformational Leadership Theory and utilized survey data collected by the respondents in various family clinics organizations. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the data. The results indicate that the quality of succession planning plays a significant role in determining the employee performance and the performance of the organization. On the same note, successor leadership style has a lot of positive impacts on employee performance and organizational performance. Employee performance however does not have significant influence on organizational performance and as such does not mediate the relationships between independent variables and organizational performance. The research model has indicated a significant explanatory ability regarding employee performance as well as organizational performance. The results imply that in the context of family clinic succession, the quality of succession planning and the successor leadership style are direct causes of the organizational performance and do not mediate their effects via the employees. The research makes a contribution to succession and leadership literature by providing empirical findings in a developing market healthcare setting and making practical implications to family clinic proprietors on the effective management of leadership transitions.
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