Abstract:

Succession is a widely researched phenomenon in family business context. However, there is dearth of literature disseminating knowledge on its impact on employee motivation, especially when company employees both family and non-family members. The information is even less in the Middle Eastern environment. This research based on in depth interviews of two family businesses in Saudi Arabia employing more than 600 employees where more than 90% workforce is non-family, provides vital evidence on the topic provides vital evidence on the topic. It shows that the non-family employee motivation would decrease when they are ignored in succession to more authoritative or senior positions and vice versa. This research can become a source of guidance for the family businesses while processing the succession in the family business settings.