How Succession Planning Initiatives May Effect the Growth of SMEs in Malaysia: A Conceptual Visit

Abstract

Development of a country’s economy is depended upon how well the businesses contribute towards the economy. In a developing economy such as Malaysia, the role and function of SMEs is important. Finding ways on how these establishments can sustain their businesses and develop their own competitive advantage is crucial. To sustain a strong competitive position, SMEs need to identify its distinctive competency. Having a solid workforce could be one of its distinctive competencies. Thus, SMEs need to find ways on how to retain employees as this would help them to retain their important and valuable knowledge within the company. Once employees decided to leave the organization, there will be intangible losses that the organizations need to bear. Thus, strengthening its internal position and practices through succession planning such as training, strong management support, clarifying career path, strong positive vision and organizational culture and cultivating technological advancement are contended as efforts towards retaining knowledge within organization and ensuring sustainable growth of SMEs in the country. This study offers several implications. The managerial implications out of this research could be an increase understanding about managing and retaining knowledge within organization are important for organizational survival. Managing and retaining knowledge means managing employees and employees are valuable internal resources. Second, developing a good succession planning is an integral part of forward-thinking strategy that is important for strategic planning for any SMEs.