Family Business in the Middle East: An Eexploratory Study of Retail Management in Kuwait and Lebanon

2006 ◽  
Vol 19 (1) ◽  
pp. 29-48 ◽  
Author(s):  
Dianne H. B. Welsh ◽  
Peter Raven

The Middle East is a growing, lucrative marketplace that has recently captured the interest of the world for political as well as economic reasons due to the War in Iraq, which began in 2003. This exploratory study examines the relationship between retail small/medium enterprises (SMEs) that are family business owned, organizational commitment, and management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees of family-owned businesses in the Middle East behave in ways similar to those in Western countries; however, there are differences, probably related to cultural characteristics. The Middle East is a richly diverse region, a myriad of unique cultures. As the market becomes more sophisticated, the importance of service quality increases. Global retailers can benefit from this study by better understanding the managers and employees in the region and the pivotal role of the family on business. Implications for practice are discussed.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.


2001 ◽  
Vol 14 (3) ◽  
pp. 193-208 ◽  
Author(s):  
Annika Hall ◽  
Leif Melin ◽  
Mattias Nordqvist

This article explores the relationship between organizational culture and the entrepreneurial process that is viewed as radical change in the context of the family business. Drawing on results from two in-depth family business case studies, the authors develop a conceptual model for understanding organizational culture and its impact on entrepreneurial activities. The model is built around the extent to which the culture is connected to one dominant family member or several family members, the degree of cultural explicitness, and the degree of cultural openness. It is argued that whereas some cultural patterns tend to preserve the traditional way of doing business, others tend to facilitate entrepreneurial change. The conclusion is that to support entrepreneurial processes, managers need to foster a process of high-order learning in which old cultural patterns are continuously questioned and changed. To accomplish this, the organizational culture needs to be highly explicit and open.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Bart Henssen ◽  
Matti Koiranen

Abstract In this article, we examine the factors which lead to CEOs’ joy of working for the family firm, as it is expected to contribute to their willingness to invest in its perpetuation and success. We focus on three such factors: CEOs’ collective psychological ownership, their individual psychological ownership, and CEOs’ stewardship behavior. We find that on the one hand, the relationship between CEOs’ collective psychological ownership and their joy of working for the family business is mediated by their stewardship behavior, and on the other hand, stewardship behavior mediates the relationship between CEOs’ individual psychological ownership and their joy of work. We make valuable contributions to psychological ownership literature, to stewardship literature, and to the literature on joy and joy at work.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asael Islas-Moreno ◽  
Manrrubio Muñoz-Rodríguez ◽  
Vinicio Horacio Santoyo-Cortés ◽  
Enrique Genaro Martínez-González ◽  
Norman Aguilar-Gallegos ◽  
...  

PurposeLittle is known regarding triggers in the adoption of governance practices within family businesses. Enterprises can implement governance practices to avoid re-arising conflicts lived in the past. Moreover, the type of conflicts experienced can determine the order in which different types of governance practices are adopted, another issue that requires further investigation. To address these knowledge gaps, this study gathers evidence into how the adoption of governance practices is linked to the conflicts experienced in family businesses and how this adoption evolves.Design/methodology/approachA multiple case study was conducted with 15 family businesses in the agricultural sector. The conflicts experienced throughout the enterprises' trajectories and the governance practices adopted were analysed and classified according to their relationship with the family, business and ownership subsystems.FindingsThe study shows that there is no direct link between the conflicts experienced and the governance practices adopted in family businesses. The most recurrent conflicts have to do with the relationship between family and ownership; however, the adoption of governance practices is centred on the relationship between business and ownership. The practices that mediate the relationship between family and business are adopted second, and the practices that mediate the relationship between family and ownership are adopted last.Originality/valueThe study applies a classification of conflicts and governance practices that adjusts to the complexity of the family business. The research contributes to the field by providing an understanding of the integration of knowledge about the family business, governance systems and conflict.


2022 ◽  
Vol 19 ◽  
pp. 86-93
Author(s):  
Mahdani Ibrahim ◽  
Jumadil Saputra ◽  
Muhammad Adam ◽  
Mukhlis Yunus

The purpose of this study is to determine the relationship of resource competence, entrepreneurial leadership and good governance towards business performance and examine the moderating role of financial accessibility to the business performance of Micro Small Medium Enterprises (MSMEs). This quantitative research involved 155 professional business women community (MSMEs), Batam, Riau, Indonesia. The data collected through a survey questionnaire with a non-probability sampling technique. The data analysed by using the structural equation modelling – partial least square (SEM-PLS). This study showed that resource competence, entrepreneurial leadership, and good governance have a significant positive relationship with Micro Small Medium Enterprises (MSMEs). Also, financial accessibility moderates the relationship between entrepreneurial leadership and performance. In conclusion, this study has successfully identified the determinant factors that affect the business performance and moderating role of financial accessibility on business performance for Micro Small Medium Enterprises (MSMEs).


2006 ◽  
Vol 11 (02) ◽  
pp. 145-156 ◽  
Author(s):  
J. MARK MUNOZ ◽  
PETER RAVEN ◽  
DIANNE H. B. WELSH

The Philippines is among the emerging markets in the world. Along with China, the Philippines attracts international enterprises seeking to establish a presence in Asia. This study examines small/medium enterprises (SMEs) management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees in the Philippines behave in similar ways to those in Western countries, but there are differences, probably related to cultural characteristics. As the Philippine market becomes more involved with global business, the importance of service quality increases. The results can be valuable in the formulation of training, sales and marketing, business development, human resources management, and strategic planning. Implications for practice are discussed.


2018 ◽  
Vol 7 (4.38) ◽  
pp. 1305
Author(s):  
Nor Asmahani Ibrahim ◽  
Rosmimah Mohd Roslin

The presence of hypermarkets with modern retail format has impacted the performance of retail small medium-enterprises (SMEs) in Malaysia. The challenges of remaining competitive and the ability to sustain the business have pushed many retail SMEs to cease operations within a short period after commencement. Despite these challenges, retail SMEs can still attain competitive advantage through the strategies of strengthening and maintaining business relationships with their social networks. This study postulates that fostering social networks, specifically on the notion of homophily or similarities among social network members, is able to lure valuable resources needed by retail SMEs in achieving superior business performance. Unfortunately, only few studies have focused on social networks from within the Asian context and many tend to overlook the importance of social networks specifically in retailing. This study also suggests the relationship between value and status similarities of retail SMEs and their ability to coordinate efforts in horizontal relationships. Therefore, this study extends the discussion on the role of social networks towards better business performance of retail SMEs in Malaysia by conceptualizing a framework indicating the importance of value and status homophily on coordination of activities leading to business performance of retail SMEs.      


2020 ◽  
Vol 3 (1) ◽  
pp. 21
Author(s):  
Honey Nandlal ◽  
Suresh Kumar

<p>Nowadays, family businesses are of high number in countires and contribute to the development of the economy. This research was conducted due to the importance of family business survival and it focuses on factors that affect their performance. Recently, family businesses have been identified as one of the concerns in the global entrepreneurial development agenda. This is because of the existing problem which is caused by family business owners avoid planning and treat succession as a problem instead of an opportunity. This impacts the continuity of the family-owned business. This research is made to emphasize the importance of planning and the drawbacks of negative bias in viewing succession as a problem. This study is expected to make family business owners understand the importance of planning and treating succession as an opportunity to achieve continuity. Qualitative research method was chosen as the method of the research with first generation family business owners as the key informants. Three key informants are chosen; Mr. Untoro A. Suryadi, Mr. IS and Mr. AS. In conclusion, family business should stop strategizing succession and treat succession as a practice.</p>


1997 ◽  
Vol 10 (3) ◽  
pp. 281-302 ◽  
Author(s):  
Robert D. Hisrich ◽  
Gyala Fülöp

Although in many countries throughout the world a large percentage of firms are family businesses that directly impact the well-being of an economy, research in the field, particularly on the role of women, has been very sparse. By exploring the role of women in family business within a Hungarian context, this paper provides an indication of the similarities and differences of women entrepreneurs in family businesses and how this reflects their social structure. Since owning and running a family business requires a lifestyle that deeply impacts the women's role in society and in the family, governments need to address some fundamental issues that will help women in this process.


2021 ◽  
Vol 5 (2) ◽  
pp. 78-95
Author(s):  
Abdul Khaliq ◽  
Anum Umair ◽  
Roman Khan ◽  
Samia Iqbal ◽  
Ansar Abbass

With the changing paradigm of the world and highly competitive business environments, organizations are encountered different challenges. This paper investigates the relationship between management accounting information (MAI) and decision-making and the role of cloud computing among small-medium enterprises (SMEs) in Pakistan. In particular, the focus of this paper is on the influence of MAI on decision-making. Cloud computing is a modern technology to strengthen relationships. A quantitative research design that involves printed questionnaires was used to analyze the relationships of the variables. The survey was conducted on 384 Pakistani small and medium-sized enterprises of various sectors. The study obtained 105 useable responses. Data were analyzed using Smart PLS 3.0 (Partial Least Square) to test the researcher’s hypotheses. The study found MAI to be positively related to Pakistani SMEs’ decision-making. The findings also exposed all the dimensions of MAI; namely broad scope, timeliness, aggregation and integration, to be positively related to decision-making. Additionally, the findings indicated that, as modern technology, cloud computing strengthens the relationship between MAI and decision-making. This paper contributes by helping organizations realize the importance of MAI in decision-making and how they could relate a selection of information characteristics in terms of their business environments. Moreover, it enhances the understanding of SMEs on the function of cloud computing to get better decision-making in the light of the competition in SMEs. Pakistani industry is running successfully, and small-medium enterprises have a wide gap. Small and Medium Enterprises are going successful in Pakistan, and investor can ease to decide after receiving research directions.


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