Succession Coverage and Strategic Renewal of Retail Chains in the City of Eldoret, Kenya
Abstract
Kenyan retail chain firms face shifting consumer demand, digital disruption, and intense competition. Thus, strategic renewal is important. The effect of planned succession on strategic renewal in regional urban centers is under-researched. This study investigated the effect of succession coverage on strategic renewal in retail chain firms within the City of Eldoret, Kenya. Leadership Pipeline Theory, the Resource-Based View, and Dynamic Capabilities Theory formed the basis of the study. A descriptive, cross-sectional correlational design with a quantitative approach was used. From a target population of 95 general managers, human resource managers, operations managers and department supervisors, a stratified sample of 77 was determined using Yamane's formula, and 72 usable questionnaires were returned (93.5%). Succession coverage and strategic renewal were measured using seven-item scales, whose pilot Cronbach's alpha coefficients were .802 and .914, respectively. Descriptive statistics, correlation and regression analyses were used to analyze the data after diagnostic tests found no serious assumption violations. Succession coverage (M = 3.58) and strategic renewal (M = 3.53) were rated in the agreement range, although clear backup personnel was the weakest succession item. Succession coverage had a positive relationship with strategic renewal (r = .531, p < .001) and accounted for 28.2% of the variance in strategic renewal (F(1, 70) = 27.525, p < .001). The relationship held after controlling for three additional pipeline practices (β = .314, p = .001), and the null hypothesis was rejected. Retail chains need to identify role-level successors and backups, review readiness regularly, and integrate succession with strategy. Findings reflect managers' perceptions at one point in time and do not establish causation.
Keywords: Succession coverage, strategic renewal, leadership pipeline, retail chains, Eldoret, Kenya.
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