Defining Inheritance Risk Management as A New Concept Towards Sustainability of Family Businesses

Murad Ali Ahmad Alzaqeba
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Abstract

This study investigates the relationship between success, Inheritance Risk Management (IRM), and sustainability in family businesses. This paper is based on a quantitative approach. The population includes family-owned businesses located in Abu Dhabi that have been in operation for at least two generations. The study sample consisted of family-owned business members. However, this paper focuses only on measuring variables and testing hypotheses for the proposed measurement. Due to the complexity of the model, Smart PLS-4 was used. Through an analysis of empirical data and theoretical frameworks, the research explores the direct and mediated relationships between these key variables. The findings underscore the critical role of success in driving effective risk management practices within family enterprises. Furthermore, the study highlights the significance of IRM in promoting the sustainability and resilience of family businesses over time. The results reveal a direct positive correlation between success and sustainability, emphasizing the importance of achieving and maintaining success for long-term viability. Additionally, the mediating role of IRM underscores its crucial contribution to the overall sustainability of family businesses. The study identifies various challenges in managing inheritance risks and ensuring the continuity of family enterprises, including maintaining family control, balancing family and operational responsibilities, succession planning, grooming successors, and respecting family elders. By addressing these challenges and leveraging IRM strategies, family businesses can navigate uncertainties and capitalize on opportunities, ensuring continued success across generations. These findings provide valuable insights for strategic decision-making and resource allocation in family enterprises, guiding efforts to enhance governance structures, succession planning, and risk mitigation practices. In addition, this research contributes to advancing our understanding of the complexities surrounding family businesses and underscores the importance of proactive risk management and strategic planning for long-term sustainability.
将继承风险管理定义为实现家族企业可持续性的新概念
本研究探讨了家族企业的成功、继承风险管理(IRM)和可持续性之间的关系。本文以定量方法为基础。研究对象包括在阿布扎比经营了至少两代人的家族企业。研究样本由家族企业成员组成。不过,本文仅侧重于测量变量和检验拟议测量的假设。由于模型的复杂性,本文使用了 Smart PLS-4。通过对经验数据和理论框架的分析,研究探讨了这些关键变量之间的直接关系和中介关系。研究结果强调了成功在推动家族企业有效风险管理实践中的关键作用。此外,研究还强调了内部风险管理在促进家族企业长期可持续性和复原力方面的重要作用。研究结果表明,成功与可持续发展之间存在直接的正相关关系,强调了实现和保持成功对于长期生存能力的重要性。此外,IRM 的中介作用也强调了其对家族企业整体可持续性的重要贡献。研究指出了家族企业在管理继承风险和确保持续性方面面临的各种挑战,包括保持家族控制权、平衡家族和经营责任、继任规划、培养接班人以及尊重家族长辈。通过应对这些挑战和利用 IRM 战略,家族企业可以驾驭不确定性,抓住机遇,确保跨代持续成功。这些发现为家族企业的战略决策和资源分配提供了有价值的见解,为加强治理结构、继任规划和风险缓解实践提供了指导。此外,这项研究还有助于加深我们对家族企业复杂性的理解,并强调积极的风险管理和战略规划对于长期可持续发展的重要性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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