Determinants Linked to Family Business Sustainability in the UAE: An AHP Approach

Mohammed Oudah · Fauzia Jabeen · Christopher M. Dixon

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Family Business Performance and Succession Entrepreneurship Studies and Influences Strategic Planning and Analysis

Abstract

The purpose of this study is to identify and prioritise the various success factors linked to the sustainability of large and medium sized family businesses (FB) in the United Arab Emirates (UAE). A well-researched methodology was used for the synthesis of priorities and the measurement of consistencies. The analytic hierarchy process (AHP) model was developed with seven criteria and 15 sub-criteria gleaned from prior research. Data were collected using an interview-based survey conducted on twelve medium and large sized family firms in the UAE. The data collected were interpreted and a priority vector was assigned. The findings show that large family businesses in the UAE are aware of transition failure and have long-term planning for their future generations in place; however, they need to give more importance to family values and family capital. On the other hand, medium sized family businesses are less aware of transition failure and have limited long-term planning; they are more concerned with short-term returns. Therefore, they need to create and give more importance to succession planning, strategic planning and corporate governance to ensure their business longevity. The study highlights multi-generation family business sustainability, and identifies the major determinants that the family members and business leaders need to consider for their business continuity and survival. The model can be utilized by academics in family business sustainability studies. The findings interpreted can help policy makers and related associations develop various policies based on the specific factors found to run the family businesses in a sustainable manner. The research model had limited dimensions and the findings cannot be generalized. This study is the first to study the determinants of family business sustainability in the context of the UAE using the AHP model.

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References

1998Social Capital: Its Origins and Applications in Modern Sociology 2002Social Capital: Prospects for a New Concept 1990How to make a decision: The analytic hierarchy process 1979Optimization by the Analytic Hierarchy Process 2003Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms 2004An Overview of the Field of Family Business Studies: Current Status and Directions for the Future 2002The F-PEC Scale of Family Influence: A Proposal for Solving the Family Business Definition Problem1 1997Strategic Management of the Family Business: Past Research and Future Challenges

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