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The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia.

A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs.

The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business.

The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs.

The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success.

This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.

MAPNA Operation and Maintenance Company was established in 2003 to provide long-term services in the energy sector in Iran. This company delivered comprehensive solutions including operation and maintenance, overhaul and repair, commissioning, performance test and training in the fields of power and oil and gas. By 2021, the company had provided long-term operation and maintenance services in more than thirty power plants in Iran and had implemented more than 200 projects worth more than 300 million USD. MAPNA Operation and Maintenance Company believed that a sustainable and responsible management could be achieved through integrated management of the economic, social and environmental impacts of the business. This approach became more apparent when the company provided services countrywide, and they interacted with a wide range of stakeholders. In this context, efforts were made to create common values for both the organization and society. Some of the company’s long-term projects were in less developed areas of the country. One of the social issues in those regions was creating jobs for jobless people and preparing them to work in order to have a better life. The company policy in providing manpower for such projects was to employ indigenous manpower, training them and creating sustainable jobs for them. After hiring local workforce, the company provided professional and general training programs to improve their skills and knowledge. Also, the company was committed to prepare a healthy and safe work environment for employees to learn and comply with ethical and social norms and develop a sustainable environmental attitude by increasing the efficiency of using natural resources and controlling environmental pollution. Work-life balance programs were implemented to ensure a productive presence in the workplace and to maintain a healthy and meaningful family relationship for employees. This case aims to elaborate more on the challenges of the sustainable activities of the long-term projects that MAPNA Operation and Maintenance planned and implemented in terms of its corporate social responsibility and social entrepreneurship specifically in less developed areas.