Table 2 The results of the measurement...

Table 2

The results of the measurement model

Variable and items	Code	Loadings	α	CR	AVE
Succession planning (SP)			0.962	0.963	0.688
List of potential successors was developed	SP 1	0.73
Explicit succession criteria was developed	SP 2	0.72
Efforts to train potential successors	SP 3	0.90
Familiarize the potential successors with the business	SP 4	0.85
Familiarize the potential successors with the employees	SP 5	0.71
Decision was clearly communicated to family members	SP 6	0.94
Decision was clearly communicated to key employees	SP 7	0.84
Understanding of what the business strategy would be	SP 8	0.92
Plan for the business after the transfer of leadership	SP 9	0.91
Plan for the roles of the outgoing incumbent	SP 10	0.86
Understanding roles of the outgoing incumbent	SP 11	0.68
Financial package for the outgoing incumbent’s retirement	SP 12	0.84
Incumbent willingness to step aside (IW)			0.889	0.890	0.669
Willingly let go of the leadership	IW 1	0.78
Believes stepping aside would benefit the firm	IW 2	0.84
Prepared to relinquish leadership role	IW 3	0.82
Willingly to step back for new ideas	IW 4	0.83
Sustainability (SUS)			0.911	0.906	0.661
Contributes to community improvement beyond business	SUS 1	0.88
Sustainability is important to my firm	SUS 2	0.86
My firm has a sustainability plan	SUS 3	0.88
Having sustainable manager/successor is important	SUS 4	0.77
My firm treats employees fairly	SUS 5	0.64

Variable and items	Code	Loadings	α	CR	AVE
Succession planning (SP)			0.962	0.963	0.688
List of potential successors was developed	SP 1	0.73
Explicit succession criteria was developed	SP 2	0.72
Efforts to train potential successors	SP 3	0.90
Familiarize the potential successors with the business	SP 4	0.85
Familiarize the potential successors with the employees	SP 5	0.71
Decision was clearly communicated to family members	SP 6	0.94
Decision was clearly communicated to key employees	SP 7	0.84
Understanding of what the business strategy would be	SP 8	0.92
Plan for the business after the transfer of leadership	SP 9	0.91
Plan for the roles of the outgoing incumbent	SP 10	0.86
Understanding roles of the outgoing incumbent	SP 11	0.68
Financial package for the outgoing incumbent’s retirement	SP 12	0.84
Incumbent willingness to step aside (IW)			0.889	0.890	0.669
Willingly let go of the leadership	IW 1	0.78
Believes stepping aside would benefit the firm	IW 2	0.84
Prepared to relinquish leadership role	IW 3	0.82
Willingly to step back for new ideas	IW 4	0.83
Sustainability (SUS)			0.911	0.906	0.661
Contributes to community improvement beyond business	SUS 1	0.88
Sustainability is important to my firm	SUS 2	0.86
My firm has a sustainability plan	SUS 3	0.88
Having sustainable manager/successor is important	SUS 4	0.77
My firm treats employees fairly	SUS 5	0.64

Note(s): α- Cronbach’s alpha; CR- Composite Reliability; AVE- Average Variance Extracted

Model fit indices: χ²/df = 1.854; GFI = 0.934; NFI = 0.921; TLI = 0.953; IFI = 0.960; CFI = 0.960; RMSEA = 0.057; SRMR = 0.049

Source(s): Survey data (2023)

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