Family-Owned Small and Medium-Sized Businesses in Kuwait: A Pilot Study on Succession Dynamics

This research paper investigates the dynamics of SME family-owned businesses within the Kuwaiti context and explores their impact on succession and continuity. With limited localized research in this area, this study aims to fill this gap by analyzing the influence of family dynamics, social norms, and emotional ownership on the sustainable development of family businesses in Kuwait. By employing a quantitative approach, a pilot investigation was conducted to gather data on various SME family-owned enterprises. Pilot research was conducted with 41 participants from various family-owned businesses in Kuwait to assess the validity and reliability of the measurement tools. The research findings offer a comprehensive insight into the operations and dynamics of family-owned enterprises in Kuwait. The descriptive analysis uncovered important demographic patterns among participants, indicating an equal distribution of genders and a notable presence of adults aged 21 to 35. This indicates the presence of a youthful and energetic group of employees engaged in family-owned businesses. A reliability analysis was conducted to ensure the dependability of the measuring instruments employed in the investigation. The results, as determined by Cronbach's alpha coefficients, demonstrated satisfactory reliability for most variables. The study employed a linear analysis using ANOVA to examine potential variations in family business dynamics based on gender and generation. Surprisingly, the results showed that there were no significant statistical variations between genders or generations when it came to emotional ownership, succession characteristics, and family membership. By examining the impact of family dynamics, social norms, and emotional ownership, this study contributes to the development of effective strategies for succession planning the growth and continuity of family businesses in Kuwait.   Received: 7 April 2024 / Accepted: 2 July 2024 / Published: 5 July 2024