From Parents to Progeny: Entrepreneurial Self-Efficacy, Resilience, and Family Firm Succession

Safiya Mukhtar Alshibani () and Ali Saleh Alshebami ()
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Safiya Mukhtar Alshibani: Management Department, College of Business Administration, Princess Nourah bint Abdulrahman University, Riyadh 11671, Saudi Arabia
Ali Saleh Alshebami: Applied College, King Faisal University, Alahsa 31982, Saudi Arabia

Administrative Sciences, 2025, vol. 15, issue 11, 1-24

Abstract: This study examines how parental leadership, entrepreneurial self-efficacy, and entrepreneurial resilience—viewed through social capital theory—shape intentions around family business succession in Saudi Arabia. It also investigates the moderating role of the presence of older siblings, exploring how family dynamics affect the transfer of social capital and the likelihood of succession. This research employs structural equation modeling to analyze data from 522 respondents in Saudi Arabia. Entrepreneurial self-efficacy emerges as a key factor in shaping intentions around family business succession, highlighting the importance of psychological resources in this process. The moderating analysis shows that the presence of older siblings weakens the impact of parental guidance and entrepreneurial traits on intentions around family business succession, possibly due to competition among siblings for leadership roles in the family firm. These findings underscore the need for family businesses to strategically manage the distribution of social capital, especially in households with multiple siblings. Initiatives that enhance entrepreneurial self-efficacy and resilience can improve preparedness for succession. Moreover, addressing sibling rivalry through structured succession planning and conflict resolution mechanisms is essential for maintaining business continuity in the Saudi context. Based on social capital theory, this research offers a new perspective on how a family’s resources, networks, and relationships influence intentions around family business succession. Emphasizing the moderating role of sibling dynamics provides useful insights into managing family business transitions in Saudi Arabia, where family ties and social capital are vital.

Keywords: family business; Saudi Arabia; continuity; next generation; leadership (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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