The role of inheritance risk management in family enterprises to achieve family businesses sustainability in the middle east

Abstract

Transferring wealth and ownership in family businesses is a pivotal juncture that can either strengthen the family legacy or dismantle its foundations. However, this paper examines the effect of inheritance risk management and family business practices on family business sustainability. It also discusses the mediating role of regulatory environment in the Middle East. Nevertheless, quantitative analysis was used to investigate the direct and indirect effects of IRM and FBP on the regulatory environment and family business sustainability as well as the mediating role of the regulatory environment using a quantitative approach through a survey design. However, a total of 116 questionnaires were collected through purposive sampling from the responses. The study sample consisted of managers who were contacted through email and social networking sites. Moreover, Smart PLS 4.1.0.1 was used to test the research hypotheses. The findings indicate that IRM and FBP have significant and positive effects on the regulatory environment in terms of the sustainability of family businesses. The result also confirms the mediating effect of the regulatory environment. The results emphasize the importance of a comprehensive approach to managing family businesses both in addressing internal and external challenges as strategic planning, innovation and governance structures appear as key factors affecting the sustainability of family businesses. This study suggests avenues for future research and provides practical implications for decision-makers, policy makers, practitioners and academics seeking to develop family businesses and the long-term resilience of family businesses in the Middle East.