Succession Planning, Organizational Learning, Employee Performance & Organizational Agility: Do the Demographics Matter in Banking Industry?

Abstract

Purpose: This study examines the moderating relationship between succession planning practices, organizational learning, employee performance, and organizational agility within the Asian banking sector using demographic variables as moderating variables. It is based on the Human Capital Theory (Becker, 1964) and Dynamic Capabilities model (Teece et al., 1997). It uses the argument of succession planning to be seen as far more than merely replacing the executives of the organisation.

Design/Methodology/Approach: A quantitative cross-sectional survey design was adopted. Data were gathered from 412 banking professionals from Pakistan, KSA UAE Bahrain and Qatar, using a structured 50 item Likertscale questionnaire. Structural equation modelling (SEM) using SPSS – AMOS and hierarchical regression were used to test the eleven hypotheses.

Findings: Succession planning plays a crucial and beneficial role in enhancing employee performance (β = 0.47, p < 0.001) and fostering organizational agility (β = 0.52, p < 0.001). Organizational learning serves as a moderating factor (beta = 0.34, p < 0.01) in the relationship between HR practices and agility. While educational qualifications do not significantly influence the relationship between succession planning and performance, organizational experience has a notable effect (beta = 0.27, p < 0.01).

Originality/Value: This is one of the first multi-folded empirical studies to test the effects of succession planning on dual outcomes (employee performance and organizational agility) simultaneously in an Asian banking context and include demographic moderators and organizational learning as a boundary condition.