International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 11, Issue 6 (June 2024), Pages: 1-13

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 Original Research Paper

Development of a new concept and definition of inheritance risk management in family businesses toward sustainability

 Author(s): 

 Abdulbasit Lutfy A. Al Obaidy 1, Abdul Razzak Alshehadeh 2, Haneen A. Al-Khawaja 3, 4, 5, Iman Amin Basheti 6, 7, Murad Ali Ahmad Al-Zaqeba 8, *

 Affiliation(s):

 1Graduate School of Business, Universiti Sains Malaysia (USM), George Town, Malaysia
 2Faculty of Business, Al-Zaytoonah University of Jordan, Amman, Jordan
 3Department of Financial Technology and Banking, Faculty of Business, Ajloun National University, Ajloun, Jordan
 4Applied Science Research Center, Applied Science Private University, Amman, Jordan
 5Swiss FinTech Innovation Lab, University of Zurich, Zurich, Switzerland
 6Pharmaceutical Sciences Department, Faculty of Pharmacy, Jadara University, Irbid, Jordan
 7Faculty of Medicine and Health, School of Pharmacy, The University of Sydney, NSW, Australia
 8Faculty of Economics and Muamalat (FEM), Universiti Sains Islam Malaysia (USIM), Nilai, Malaysia

 Full text

  Full Text - PDF

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0003-0746-912X

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2024.06.001

 Abstract

This paper examines how family businesses manage risks when transferring wealth across generations to ensure sustainability. It develops a thorough framework focusing on maintaining family legacies and business continuity. Key challenges identified include managing control, balancing interests, planning succession, preparing future leaders, and maintaining respect for leadership. The study uses a quantitative method to show that managing risks related to the owner's death is crucial. The findings suggest that managing inheritance risks and achieving successful transitions are vital for the sustainability of family businesses. Inheritance Risk Management (IRM) also helps mediate the impact of legacy risk management on sustainability. The paper recommends creating guidelines, launching awareness campaigns, offering specialized courses, and promoting family governance to improve business performance and social responsibility. Additionally, this research contributes to family business studies by enhancing understanding of inheritance risks and setting the stage for ongoing research and best practices development. These strategies aim to equip family businesses to meet current needs and future challenges effectively.

 © 2024 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Inheritance, Endowment, Financial aspects, Family control, Succession

 Article history

 Received 31 January 2024, Received in revised form 14 May 2024, Accepted 16 May 2024

 Acknowledgment 

This paper is part of a Ph.D. thesis on IRM. Special thanks are extended to the participants of this study for their cooperation and willingness to share their experiences, which have been essential for the success of this research. Their insights provided valuable empirical evidence and enriched the depth of our analysis.

 Compliance with ethical standards

 Ethical considerations

This research was conducted in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki Declaration and its later amendments or comparable ethical standards. Informed consent was obtained from all individual participants included in the study. The study protocol was approved by the institutional review board of Universiti Sains Malaysia (USM). The confidentiality of the participants was maintained by anonymizing the data and securely storing the information.

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Al Obaidy ALA, Alshehadeh AR, Al-Khawaja HA, Basheti IA, and Al-Zaqeba MAA (2024). Development of a new concept and definition of inheritance risk management in family businesses toward sustainability. International Journal of Advanced and Applied Sciences, 11(6): 1-13

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 Figures

 Fig. 1 Fig. 2 Fig. 3 

 Tables

 Table 1 Table 2 Table 3 Table 4

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