The Impact of Family-orientation Training Design, Trainer Attributes and Trainee Absorption on Family Business SMEs’ Performance: The Mediating Role of Succession Planning

Abstract

This research examines the role of family-oriented training design, family-oriented trainer characteristics and family-oriented trainee absorption on family business small and medium enterprises (SMEs) performance in Malaysia. The study also examines whether the effects are mediated by succession planning to provide empirical contributions to business sustainability through human capital development. A quantitative methodological approach was applied, using a questionnaire survey to collect primary data from 396 family business SMEs owners and managers. The data were analysed through partial least squares–structural equation modelling (PLS–SEM) methodology, including hypotheses on measuring and structural models, as well as mediation effects. The results reveal significant effects on family business performance from family-oriented training design and trainer characteristics, with no effects from trainee absorption. The mediation effects of succession planning are partial for training design and trainer characteristics on family business performance, and no mediation effects from trainee absorption.