Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia

Abstract Due to their strong emotional interest and ownership control, family firm owners significantly influence their firm’s strategies and governance, which has consequences for their business sustainability practices. The failure to establish or maintain formal organizational structures, and ado...

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Main Authors: Razan Abdullah Al Rawaf, Abdulaziz Abdulmohsen Alfalih
Format: Article
Language:English
Published: SpringerOpen 2024-05-01
Series:Future Business Journal
Subjects:
Online Access:https://doi.org/10.1186/s43093-024-00333-5
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author Razan Abdullah Al Rawaf
Abdulaziz Abdulmohsen Alfalih
author_facet Razan Abdullah Al Rawaf
Abdulaziz Abdulmohsen Alfalih
author_sort Razan Abdullah Al Rawaf
collection DOAJ
description Abstract Due to their strong emotional interest and ownership control, family firm owners significantly influence their firm’s strategies and governance, which has consequences for their business sustainability practices. The failure to establish or maintain formal organizational structures, and adopt good governance principles, may hinder family firms in their pursuit of long-term sustainability. This study empirically investigated the impact of corporate governance on family firms’ sustainability, with women’s empowerment and culture as moderating and mediating factors, respectively. Data for the study were obtained from a sample of 126 family firms from Saudi Arabia. The study adopted the partial least squares structural equation modelling (PLS-SEM) method. The study results empirically confirmed that corporate governance is positively associated with women’s empowerment, which also assists in achieving business sustainability in family-controlled firms. The adoption of good corporate governance policies, and empowerment of women through their appointment on corporate boards operating in a supportive culture, can reinforce an organization’s mission, purpose and strategies, which can create an enabling environment for family business sustainability.
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publishDate 2024-05-01
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record_format Article
series Future Business Journal
spelling doaj-art-d893e4daff254d5b9e171cd16634381b2025-08-20T01:51:38ZengSpringerOpenFuture Business Journal2314-72022314-72102024-05-0110111910.1186/s43093-024-00333-5Family business sustainability: the impact of governance and women’s empowerment in Saudi ArabiaRazan Abdullah Al Rawaf0Abdulaziz Abdulmohsen Alfalih1Department of Business Administration, College of Business and Economics, Qassim UniversityDepartment of Business Administration, College of Business and Economics, Qassim UniversityAbstract Due to their strong emotional interest and ownership control, family firm owners significantly influence their firm’s strategies and governance, which has consequences for their business sustainability practices. The failure to establish or maintain formal organizational structures, and adopt good governance principles, may hinder family firms in their pursuit of long-term sustainability. This study empirically investigated the impact of corporate governance on family firms’ sustainability, with women’s empowerment and culture as moderating and mediating factors, respectively. Data for the study were obtained from a sample of 126 family firms from Saudi Arabia. The study adopted the partial least squares structural equation modelling (PLS-SEM) method. The study results empirically confirmed that corporate governance is positively associated with women’s empowerment, which also assists in achieving business sustainability in family-controlled firms. The adoption of good corporate governance policies, and empowerment of women through their appointment on corporate boards operating in a supportive culture, can reinforce an organization’s mission, purpose and strategies, which can create an enabling environment for family business sustainability.https://doi.org/10.1186/s43093-024-00333-5Family firmsCorporate governanceWomen’s empowermentCorporateFamily culture
spellingShingle Razan Abdullah Al Rawaf
Abdulaziz Abdulmohsen Alfalih
Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia
Future Business Journal
Family firms
Corporate governance
Women’s empowerment
Corporate
Family culture
title Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia
title_full Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia
title_fullStr Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia
title_full_unstemmed Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia
title_short Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia
title_sort family business sustainability the impact of governance and women s empowerment in saudi arabia
topic Family firms
Corporate governance
Women’s empowerment
Corporate
Family culture
url https://doi.org/10.1186/s43093-024-00333-5
work_keys_str_mv AT razanabdullahalrawaf familybusinesssustainabilitytheimpactofgovernanceandwomensempowermentinsaudiarabia
AT abdulazizabdulmohsenalfalih familybusinesssustainabilitytheimpactofgovernanceandwomensempowermentinsaudiarabia