The role of top management in CEO succession planning: A study of family-led business in Maldives

Abstract

This study examines the strategies and challenges of succession planning in family-led businesses within the Republic of Maldives, a small island nation comprising 1,192 coral islands, of which 199 are inhabited. With a population of approximately 543,620 [1], the Maldives faces unique socio-economic challenges due to its geographic and demographic constraints. The study focuses on successful family-run businesses, exploring their approaches to leadership transition, corporate governance, and the role of human capital in sustaining organizational performance. Using qualitative methods, including interviews with CEOs and HR managers, the research highlights the importance of structured succession planning, the impact of corporate leadership, and the vulnerabilities exposed by external disruptions such as the COVID-19 pandemic. The findings offer recommendations for improving succession planning processes to ensure long-term organizational resilience and stability.