International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online)

Disputes among Inheritors and Their Impact on the Continuity of Family Enterprises in the Western Region of the Kingdom of Saudi Arabia: Applied Study
Dr. Nayef Salah Ghamri

Abstract
This research examines disputes among inheritors in family enterprises in the Western Region of KSA as a result of personal problems among them, distribution of inheritance, modern lifestyle and educational, age and social backgrounds. The research also presents findings and recommendations that may contribute to finding solutions, such as governance and transformation of family businesses into joint stock companies (Howards, 2010). Therefore, 162 questionnaires were distributed to managers, owners and employees of family enterprises. A preliminary study was conducted on the questionnaire and on its basis, the questions required for the study were developed. The study shows that there is a statistically significant correlation between the way of raising children and the continuity of family enterprises, a statistically significant correlation between the personal traits of some children and the survival and continuity of family enterprises, a statistically significant correlation between the adopted management methods and the survival of family enterprises, a direct correlation between the disputes among children of the second and third generations and the continuity of family enterprises, a direct correlation between the continuity of family enterprises and the children educational backgrounds, a statistically significant correlation between the financial aspects and the continuity of family enterprises, a statistically significant direct correlation between the size and the continuity of family enterprises and a statistically significant direct correlation between the role played by courts and the seriousness of family disputes in enterprises. Findings have shown that family disputes are of the key variables causing the fall of many family enterprises. The research recommends resolving disputes before referral to courts and applying dispute settlement laws to disputes occurring between sons and cousins of the second and third generations in businesses.

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