Entrepreneurial strategies and family firm culture in the Arab world: a systematic literature review

Abstract

Purpose Family businesses are value-based enterprises, contributing significantly to wealth creation. Although extensive research is conducted on family businesses, there is no study investigating how the cultural traits in the Arab world affect the organizational culture of family businesses. This paper discusses how the cultural characteristics in the Arab world shape family enterprises and explores how the Arab world's organizational culture enables family firms to establish competitive advantage underpinned by founder centrality, the concept of family, and business principles spanning many generations.

Design/methodology/approach A thorough search of the extant literature was done in Scopus, Web of Science, EBSCO, and ScienceDirect using a combination of keywords such as Arab culture, family businesses, family firm culture, organizational culture, cultural traits, management strategies, and entrepreneurial strategies. Selected articles were classified according to their content, reviewed, and analyzed.

Findings This study makes a few critical contributions about the nature, and the origins of organizational culture in family firms, entailing the founder's centrality and stewardship theory. Specifically, family firms in the examined region appear to have a stronger firm culture compared to non-family businesses. Also, organizational culture affects family businesses considering the firm-level outcomes, such as hereditary transition success, family inertia, etc.

Originality/value This paper adds to the existing theoretical knowledge and underlines the cultural traits and family firm culture in the Arab world. A framework is presented, offering practical recommendations to managers of family firms striving to advance their competitiveness.