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This study examines the influence of succession planning and the incumbents’ willingness to step aside on the sustainability of family businesses, a critical but often overlooked aspect that can determine the long-term viability of these enterprises. The study further explores the moderating effect of the incumbents’ willingness to step aside in the relationship between succession planning and sustainability.

The study employs a cross-sectional survey design. Data were collected through structured questionnaires from 190 successors of family businesses in Tanzania. Confirmatory factor analysis was used to validate the measurement model, and hypotheses were tested using the PROCESS macro.

The findings indicate that both succession planning and the incumbents’ willingness to step aside significantly enhance the sustainability of family businesses by ensuring a smooth and structured leadership transition, which minimizes disruptions and safeguards business continuity. Additionally, the incumbents’ willingness to step aside was found to be a significant moderator of the relationship between succession planning and sustainability, meaning that the influence of succession planning on sustainability is much stronger when the incumbents are fully supportive and cooperative during the transition. This implies that without the incumbents’ active participation, even well-designed succession plans may not achieve their full potential.

This study contributes to the limited empirical evidence on the influence of succession planning on the sustainability of family businesses. Additionally, it advances current understanding by identifying the moderating effect of the incumbents’ willingness to step aside on the relationship between succession planning and sustainability, an area not previously explored in the literature. The findings have significant implications for both practitioners and researchers, offering new perspectives on managing generational transitions in family businesses.