The Internationalization Decision-Making of United Arab Emirates Family Businesses

2016 ◽  
pp. 1-22
Author(s):  
Fauzia Jabeen ◽  
Syed Zamberi Ahmad ◽  
Saeed Alkaabi
Keyword(s):  
Decision Making ◽  
United Arab Emirates ◽  
Family Firms ◽  
Family Businesses ◽  
Strategic Decision ◽  
Research Approach ◽  
International Expansion ◽  
Factors Affecting ◽  
East Region ◽  
Major Factors

International expansion epitomizes a vital strategic decision that family firms must go through to grow. However, limited research has been conducted on internationalization decision making in family businesses (FBs). Various disparities have been observed in the previous researches concerning the factors that affects and stimulate a FBs' decision making to internationalize. The purpose of this study is to analyze the internationalization pattern of FBs in the United Arab Emirates (UAE), a dynamic emerging economy in the Middle East region. A qualitative research approach was selected, and after a thorough review of the relevant literatures, the major factors affecting international decision making in FBs were identified. It was concluded that there are some common factors regarding international decision making in FBs in the UAE and the rest of the world, and some of the factors are unique to a specific country, industry, or product. Suggestions on how to move this field of study forward are also presented.

scholarly journals Factors Affecting Women’s Intention to Lead Family Businesses in Mexico

2021 ◽  
Vol 10 (7) ◽  
pp. 251
Author(s):  
Jorge Duran-Encalada ◽  
Katarzyna Werner-Masters ◽  
Alberto Paucar-Caceres
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Leadership Role ◽  
Strategic Decision ◽  
Structured Interviews ◽  
Factors Affecting ◽  
Managerial Roles ◽  
The Family

The purpose of this study is to establish the prevalence of barriers to women’s leadership in the family business in terms of invisibility, the glass ceiling effect, and sexism. We conduct eight semi-structured interviews with women holding leading managerial roles in family businesses in Mexico to identify the factors that impede/facilitate their involvement. We apply the theory of planned behavior (TPB) in order to determine how these factors support/constrain women in their roles. We find that some factors and circumstances are critical for women to achieve an important leadership role in the family business. These factors entail levels of education and experience, the extent to which women participate in strategic decision making and governance of the firm, as well as the support of the company’s founder and other family members for these women’s efficacy and self-esteem. These results challenge some of the extant findings in the literature, thus enriching the current perspectives on the leadership role of women in family firms. Moreover, this research is the first attempt to analyze impediments to women under the TPB perspective as well as one of the few studies conducted on the topic in Latin America, specifically in Mexico.

An image theory of strategic decision-making in family businesses

2019 ◽  
Vol 9 (4) ◽  
pp. 451-467
Author(s):  
Christopher Penney ◽  
James Vardaman ◽  
Laura Marler ◽  
Victoria Antin-Yates
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Strategic Decision ◽  
Image Theory ◽  
Strategic Decision Making ◽  
Screening Criteria ◽  
Business Decision ◽  
Content Type

Purpose Research suggests family businesses often pursue risky or aggressive strategies despite the desire to preserve socioemotional wealth (SEW), which is thought to lead to conservativism in family firm strategic decision making. The purpose of this paper is to resolve this apparent contradiction by presenting a model that describes the screening criteria used by family business decision-makers when evaluating strategic opportunities. Design/methodology/approach The conceptual model relies on insights derived from image theory to resolve apparent contradictions inherent in the SEW perspective’s implications for family firms’ risky strategic decisions. Findings The proposed model suggests new strategic opportunities in family firms are evaluated through an unconscious, schema-driven decision process and that the preservation of SEW does not preclude risky strategic directions, but instead serves as an unconscious screening criteria for strategic opportunities. Originality/value This paper contributes to the literature by expanding the understanding of family-firm strategic decision-making to include considerations of the decision’s fit with the family’s principles, goals and strategic plan rather than solely to overall risk to SEW. Thus, the paper presents a detailed model of family-firm strategic decision-making that relies on insights from image theory.

Critical Systems Perspective of Strategic Decision Making

2020 ◽  
pp. 55-80
Author(s):  
Jelena Nikolić ◽  
Dejana Zlatanović
Keyword(s):  
Decision Making ◽  
Systems Thinking ◽  
Critical Systems Thinking ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Critical Systems ◽  
Strategic Decisions ◽  
Systems Methodology ◽  
Soft Systems ◽  
Factors Affecting

Growing complexity and diversity of strategic decisions indicate the need for applying the appropriate holistic tools in strategic decision making. Thus, the chapter deals with the process of strategic decision making from the viewpoint of critical systems thinking, with emphasis on the role of values and context in strategic decision making. The main purpose is to show how systems thinking generally and critical systems thinking particularly can help decision makers involve different perceptions and values in the process of strategic decision making, as well as take into account context in which the strategic decisions are made. Considering the key internal and external factors affecting strategic decision making, the authors have selected three systems methodologies stemming from different paradigms: soft systems methodology as interpretive, team syntegrity as emancipatory, and organizational cybernetics as functionalist systems methodology. The way in which they can be combined, aimed at improving effectiveness of strategic decision making, has been presented.

Impact of family involvement on strategy and CEO compensation

2019 ◽  
Vol 10 (3) ◽  
pp. 189-212
Author(s):  
Manika Kohli ◽  
Suveera Gill
Keyword(s):  
Decision Making ◽  
Panel Data ◽  
Family Involvement ◽  
Ceo Compensation ◽  
Family Firms ◽  
Corporate Strategy ◽  
Dynamic Panel Data ◽  
Growth Strategy ◽  
Strategic Decision ◽  
Content Type

Purpose As widely known and well established, strategic decision-making at family firms is an interface between business interests and family considerations. The purpose of this paper is to understand the underlying basis of decision-making in setting corporate strategy and designing chief executive officer (CEO) compensation at founder- vis-à-vis descendant-led family firms in the Indian pharmaceutical sector. Design/methodology/approach A sample of 106 BSE-listed pharmaceutical companies have been studied over the period 2012–2017 resulting in a total of 636 firm-year observations. Impact of family involvement in business (FIB) on corporate strategy and CEO compensation has been analysed by constructing multivariate panel data regression models. To deal with the problem of endogeneity, Arellano-Bond (1991) dynamic panel data estimation procedure has moreover been conducted. Findings Supporting stewardship theory, founder-owned and governed firms have been found to favour “growth” strategy and distribute “conservative” executive pay, thereby exerting a positive moderating impact on the strategy-compensation linkage. On the contrary, descendants/second-generation entrepreneurs have put forth a “conservative” stance for growth and innovation, and have rather been observed to favour a “liberal” compensation policy, thereby showcasing the application of behavioural agency theory. Originality/value The research is a novel attempt to unravel the interaction between corporate strategy and CEO compensation in a family firm backdrop carried out in the context of an emerging economy. The study, moreover, adopted an all-encompassing definition of FIB (ownership, management and governance).

Strategic decision-making in family firms: an explorative study

2018 ◽  
Vol 12 (5/6) ◽  
pp. 655
Author(s):  
Andreas Kallmuenzer ◽  
Wolfgang Hora ◽  
Mike Peters
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Explorative Study

Relational and Contractual Governance in Family Firms: Effects on Strategic Decision Making

2002 ◽  
Vol 15 (3) ◽  
pp. 205-222 ◽  
Author(s):  
Mikko Mustakallio ◽  
Erkko Autio ◽  
Shaker A. Zahra
Keyword(s):  
Decision Making ◽  
Social Control ◽  
Structural Equation ◽  
Family Firms ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Formal Control ◽  
Governance Model ◽  
The Social

Governance of family firms differs from mainstream corporate governance in an important respect: Important owners, i.e., family members, may have multiple roles in the business. In this paper, we develop and test a model of family firm governance that incorporates both formal control and social control aspects of governance. Governance based on the formal control draws on agency theory, whereas the social control aspects draw on social theories of governance, addressing social capital embedded in relationships. Drawing on these theories, we examine the influence of different governance mechanisms on the quality of strategic decision making. The Family Business Governance Model is tested using survey data from 192 family firms in Finland. We use structural equation modeling in testing the empirical validity of the model. The empirical analysis largely supports our hypotheses on formal control and social control as well as their influences on the decision-making quality.

Oilfield Services – the Abu Dhabi branch

2011 ◽  
Vol 1 (1) ◽  
pp. 1-2
Author(s):  
Conchita Mary Fonseca
Keyword(s):  
Decision Making ◽  
United Arab Emirates ◽  
Business Strategy ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Subject Area ◽  
Strategic Decision ◽  
Abu Dhabi ◽  
Gulf Region ◽  
Content Type

Subject area Business strategy and human resource management. Study level/applicability Undergraduate Business and Management. Case overview This case spotlights Oilfield Services branch in Abu Dhabi, United Arab Emirates. It focuses on various problems encountered whilst operating in Abu Dhabi. Oilfield Services was first established in Dubai in 1995, primarily to meet the growing demand of quality human resources in the oilfield, shipping, and fabrication sectors in the Middle East and Persian Gulf region. The case highlights the challenges of motivation and compensating staff and the importance of strategic decision making. Expected learning outcomes This case can be used to teach decision making, cost/benefit analysis, employee motivation, and compensation and elements relating to international business strategy. Supplementary materials A teaching note is available on request.

In the Horns of the Dilemma: Socioemotional Wealth, Financial Wealth, and Acquisitions in Family Firms

2015 ◽  
Vol 44 (4) ◽  
pp. 1369-1397 ◽  
Author(s):  
Luis R. Gomez-Mejia ◽  
Pankaj C. Patel ◽  
Thomas M. Zellweger
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Socioemotional Wealth ◽  
Family Control ◽  
Financial Wealth ◽  
Empirical Results ◽  
Problem Framing ◽  
Firm Owners

We posit that family firms often face a dilemma in their strategic decision making: whether to maintain current socioemotional wealth or pursue prospective financial wealth. Applying such a mixed gamble perspective to acquisitions, family owners assess potential acquisitions with regard to their impact on both wealth dimensions. In line with this reasoning, our results show that family control implies a general reluctance to acquire and, when an acquisition happens, a preference for related targets. Because financial and socioemotional viewpoints lead to largely incompatible predictions about the occurrence and relatedness of acquisitions, family firm owners use their firm’s vulnerability as a signal. Increased vulnerability leads to a heightened propensity to prioritize financial over socioemotional wealth problem framing, which is reflected in the acquisition of unrelated targets. Empirical results are supportive of these predictions.

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