Succession in family business based on gender in Saudi Arabia

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Succession in family business based on gender in Saudi Arabia

  • CHAPTER 1: INTRODUCTION
    • Background of the Study

In the current wave of globalisation, global corporations, and broad- dominated corporate elements and multinational forces; it is easy to ignore that fact that a large proportion of the surviving and most successful companies are family businesses which are the most common businesses in both the advanced and developing countries. This implies the positive influence of these businesses in the overall economy as well as the global market. According to Bhaumik and Gregoriou (2010), many companies globally are family- owned and their ownership structure on a global scale is family- based. Globally, several companies started from the family ownership structure. For instance, American companies such as Ford, Wal-Mart, Bombardier, and Camex; European companies such as Bosch, Peugeot, and IKEA; Asian companies such as Samsung, Tata, and LG started out as family businesses (Saddi, Karlsson, Youssef, & Abdullah, 2009). Therefore, family businesses take an important place in academic literature as evidenced by the large amount of research focusing on it (Gudmundson, Hartman & Tower 1999; Al-Dubai, Ismail & Afza 2012; Bhaumik and Gregoriou 2010).

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Succession in family business based on gender in Saudi Arabia

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Succession in family business based on gender in Saudi Arabia

  • CHAPTER 1: INTRODUCTION
    • Background of the Study

In the current wave of globalisation, global corporations, and broad- dominated corporate elements and multinational forces; it is easy to ignore that fact that a large proportion of the surviving and most successful companies are family businesses which are the most common businesses in both the advanced and developing countries. This implies the positive influence of these businesses in the overall economy as well as the global market. According to Bhaumik and Gregoriou (2010), many companies globally are family- owned and their ownership structure on a global scale is family- based. Globally, several companies started from the family ownership structure. For instance, American companies such as Ford, Wal-Mart, Bombardier, and Camex; European companies such as Bosch, Peugeot, and IKEA; Asian companies such as Samsung, Tata, and LG started out as family businesses (Saddi, Karlsson, Youssef, & Abdullah, 2009). Therefore, family businesses take an important place in academic literature as evidenced by the large amount of research focusing on it (Gudmundson, Hartman & Tower 1999; Al-Dubai, Ismail & Afza 2012; Bhaumik and Gregoriou 2010)…………….

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