Leadership in Saudi family businesses and its impact on innovation

Abstract

This article is aiming to explore how leadership in the Saudi family business may unintentionally discourage innovation by their practices. Beginning with defining of family businesses and its role in the economy, and then discuss risk acceptance and some hiring practices within these companies from the literature. Thematic analysis of the semi-directed interview of founders and employees showed some contradiction between them. The founders revealed a high level of risk acceptance and the desire to invest in the minds of the employees, In contrast, the employees described leadership as dictatorship and central that suppress innovation and innovators. The paper is concluded with five management recommendations that help leadership direct efforts to support innovation.