Maintaining knowledgeable employees is a challenge for most organizations. Many SMEs have recently suffered from the loss of knowledge as a result of employees leaving the organization. When employees leave, the organization may suffer from the loss of knowledge, impact on overall productivity, and the organization's profit. Much previous research has been conducted on succession planning and knowledge management, but there has been a lack of studies concentrated on succession planning and its impact on knowledge retention. Thus, the aim of this study is to determine the direct impact of succession planning initiatives on knowledge retention among SMEs in Peninsular Malaysia. Quantitative methods and survey questionnaires were used to target employees working in SMEs and holding a managerial position in the services and manufacturing sector. 81 respondents participated in this study and the SmartPLS 3.0 software was used to analyse the findings. Empirical findings show that there are two variables related to succession planning initiatives which are management support and organizational culture that contributed significantly towards knowledge retention. Implications of the study are also discussed.
