Family Firms Navigating Institutional Voids: Resource Access and Barriers in the Arab World

Abstract

Purpose: This study investigates how family ownership and family managerial involvement influence firms' access to important resources and their ability to navigate institutional barriers in the Arab world.
Study design/methodology/approach: Drawing on institutional theory and the concept of institutional voids, the study employs data from the World Bank Enterprise Surveys for six Arab countries. Regression analysis is used to examine the relationships between family involvement and institutional challenges.
Sample and data: The study employs a sample of 1,312 family firms from Egypt, Jordan, Lebanon, Morocco, Tunisia, and the West Bank and Gaza. Data was collected between 2013 and 2020. Firms were selected based on complete data for family involvement and operational continuity.
Results: The study found that family ownership and managerial involvement facilitate access to land but not finance. Family managerial involvement is associated with lower perceived crime barriers, while both family ownership and management are linked to higher perceived corruption obstacles. Regulatory barriers have no significant relationship to family involvement.
Originality/value: The study extends institutional theory to the Arab family business context, highlighting the important yet nuanced role of family involvement in navigating institutional voids.
Research limitations/implications: The study relies on perceptual measures and cross-sectional data, limiting causal inferences and inter-temporal generalizability. Future research could use longitudinal designs and more detailed primary data to explore mediators like firm size or industry. The findings offer practical insights for family businesses and policymakers in addressing institutional challenges.