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Challenges facing the succession of family owned businesses in Saudi Arabia

Family based businesses in Saudi Arabia face major challenges in the form of operating in a difficult global economy as well as managing the overall transition phase of the business to a new generation of family control. In order to survive and grow and make a place among those elite family based businesses that have been able to achieve long lasting global success the companies has to domesticated the restless entrepreneur conditions and design long term strategies to manage the business. Structured steps can help the companies’ o gain log lasting success. This has to start with the steep revolution of the existing business portfolios. The process may actually include divestment, product differentiation to develop a long term growth strategy along with the structuring the internal operations of the firms. Here, it is to be mentioned that all these can be achieved by retaining the emotional attachments to the businesses. The same kind of dedication and discipline is needed to clip the portfolio of the businesses has to be applied to analyze new investment policies. This may call for a situation where family members have to invest in activities that are quite different from that of the activities of the firm. Developing a formal corporate governance mechanism to monitor business activities is likely to be another crucial step that the families may have to take to achieve long term success. This may even involve the recruitment of outside talent and initiating organizational change. The present study looks to analyze all these factors. This study will help to observe the aspects of family own business in Saudi Arabia and certain succession aspects within family business. In order to achieve the objective of the research, physiological attitudes, theories of culture, and several legal and socio-cultural aspects have been studied. The integration of these aspects will influence the results and outcomes. The phrase family business is familiar both within Western and Eastern countries. According to Chua and Chrisman family business is acknowledged as a business managed to shape and follows a vision held by a leading alliance controlled by a member of a family. One objective of family business is to control and manage the business in order to sustain for the future generation. However, all members in a family are in the same

Challenges facing the succession of family owned businesses in Saudi Arabia