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

Abstract

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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