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Reflect on the influence of different lifecycle stages on the strategy of a family business; evaluate the impact of family, industry and company dynamics on the evolution of a family firm; assess the impact of ownership, governance and succession considerations on the sustainability of a family firm; and develop decision-making skills to overcome specific dilemmas and secure the family business longevity.

Five industries, three generations and one family business. What started off as an entrepreneur’s ambition, Almajid Limited has proven itself to a sustainable source of revenue and a diverse portfolio of businesses for multiple generations of a Saudi Arabian family. This case study offers an exclusive opportunity to follow the tumultuous journey of a Saudi family business and analyze the different phases of its evolution over seven decades and three generations. In particular, the case aims to highlight the complexities surrounding the management of a family firm and illustrate how various lifecycle stages stemming from a number of areas (e.g. family, company, industry, ownership and governance) simultaneously influence the family business strategy. Being deeply embedded in the context of Saudi Arabia, the case unveils the unique challenges of managing a family business in a conservative cultural setting. The case study is divided into four parts, with each of them putting the emphasis on a different lifecycle area of significance for the evolution of the family business. Each part culminates with the identification of an area-relevant dilemma that needs to be addressed for the family firm to be able to move into the next stage of its development. Part A focuses on the family area or axis, the Part B on the industry axis, Part C on the company axis, while Part D is based on the sustainability axis, which embraces as many as three dilemmas in relation to the ownership, governance and succession in the family firm. Moreover, each part incorporates a timeline of critical events that contributed to the emergence of a specific dilemma and a culturally-rooted anime that helps the readers visualize the story, picture somebody else’s reality, and empathize with the key protagonists of the case to achieve optimal decision-making.

Graduate audience: Master of Business Administration or Master of Global Entrepreneurial Management.

Teaching Notes are available for educators only.

CSS 11: Strategy.

This case gives students the opportunity to explore the concept of organizational status as a competitive asset. CEO Noura Abdullah of Saudi furniture retailer Aura founded her company as a middle-market furniture and home goods store offering affordable yet design-savvy products. By many accounts, both tangible and intangible, Aura had been a success. By late 2014, Aura had drawn considerable attention from several high-status Saudi wedding planners and media outlets, including Harper's Bazaar Interiors, Elle Decor, and Martha Stewart Weddings. This attention yielded unusually strong conversion rates (the percentage of visitors to the store who made a purchase). Foot traffic, on the other hand, remained unexpectedly low, leading Abdullah to wonder whether the high-status affiliations had unintentionally signaled to mid-market consumers that they would not be able to afford Aura's products, keeping such customers away. Students will decide, along with Abdullah, how to handle this unique “problem” as Aura enters a growth phase to other Saudi and Middle Eastern markets.

This paper aims to examine the influence of accounting information system (AIS) success on planning process effectiveness (PPE) in small- and medium-sized enterprises (SMEs) of Yemen, a less developed nation (LDN).

This study developed a theoretical model based on IS success model (DMISS2003). The model’s components were tested using structural equation modeling via SmartPLS on a sample of 325 SMEs.

The empirical results imply that AIS success positively affects PPE if SMEs focus on AIS information quality, system quality, user satisfaction and usage.

This study focused on SMEs in Yemen. Thus, it can be expanded to include different other countries.

The results of this study could be considered by owners and managers of SMEs, policymakers and AIS designers/vendors. This study could provide them insight into the role of AIS success in promoting PPE in SMEs. This study could assist policymakers in analyzing the work of SMEs and assessing their success, referring to AIS. Moreover, knowing the most critical determinants of AIS success could direct designers’/vendors’ efforts toward upgrading and improving the present AIS.

Government policymakers in LDNs considering how to motivate SME development in their nation should be aware of the significance of AIS success and implementation among SMEs and its role in the nation’s economic development.

This research is one of the first that investigates the impact of AIS success on PPE in SMEs. Current literature largely lacks the investigation of such an impact, especially among SMEs in LDNs such as Yemen. Most AIS’s prior research focused on SMEs in developed nations, which may not fully apply to LDNs such as Yemen. Indeed, no existing literature is available where AIS success impacts PPE in SMEs of LDNs. In this respect, this study claims its uniqueness.

The unique characteristic of Islamic bank leads in governance and disclosure. Using stakeholder, signaling, and market discipline theory, governance and adequate disclosure may increase bank soundness. This study aims to investigate the relationship of sharia disclosure and Sharia Supervisory Board in influencing Islamic bank soundness in the different regulatory framework of the country. Using purposive sampling, the research covered 84 Islamic banks in 16 countries during the period 2013–2015 with lag data of Islamic bank soundness. The result shows sharia disclosure influences on Islamic bank soundness for management efficiency, capital adequacy ratio, asset quality, and liquidity. The results also show that sharia disclosure mediates the indirect effect of SSB on Islamic bank soundness. The regulatory framework (sharia accounting standard and SSB regulation) shows moderating effect of regulation framework proved on the association of sharia disclosure with management efficiency, capital, and liquidity. The effect is indirectly depending on the regulatory framework for proxy management efficiency, capital, and liquidity. The implication of the research suggests that sharia disclosure could increase the market discipline mechanism of Islamic bank stream. The Islamic bank can increase the transparency using sharia disclosure as a branding for increasing public trust, even though in the deficient Islamic bank regulation countries.

Several previous studies showed strong social stigma toward mental illness patients from the health-care providers (HCPs) in Saudi Arabia. This stigma affects the level of care provided by HCPs. Stigma is a major barrier in treating schizophrenia and obsessive-compulsive disorder (OCD) patients. Thus, it is important to clarify the difference regarding the social stigma between both diagnoses. This study aimed to identify and compare the existence of social stigma among HCPs towards schizophrenia patients compared to OCD patients.

A total of 283 HCPs from King Abdullah Medical City (KAMC), Makkah, Saudi Arabia, were enrolled in this cross-sectional questionnaire-based study between middle and end of January 2021. The scale included a demographic questionnaire plus two vignette cases reflecting OCD and schizophrenia patients’ symptoms without mentioning diagnosis. Each case was followed with 18 questions, which measured some of the thoughts and attitudes of the social stigma of mental illnesses including negative stereotypes, discrimination, social distancing and emotional and cognitive prejudices against mental illness patients. The scale was validated by a pilot study (which included 15 other participants) with acceptable validity and reliability (Cronbach’s alpha: 81.4%).

Most participants’ responses were “low” in the total score of their stigma score for both diagnosis [OCD (84.1%), mean ± SD (1.15  ±  0.366) and schizophrenia (74.2%), mean ± SD (1.25  ±  0.438)]. However, those who responded “high” in their stigma score regarding the schizophrenia section were higher in their number than those who responded “high” in the OCD section (25.8% vs 15.9%). Most participants had “low” total stigma scores for both diagnoses [OCD (84.1%), mean ± SD (1.15  ±  0.366) and schizophrenia (74.2%), mean ± SD (1.25  ±  0.438)]. However, of those with “high” stigma score responses, more were for the schizophrenia section compared to the OCD section (25.8% vs 15.9%). Being flexible to recruit any of them was more related to promoting them if they deserve promotion. The sample that answered wrong regarding OCD vignette diagnosis and had “high” stigma score was higher (n = 40) than the sample that answered correctly and had “high” stigma score (n = 5). In contrast, the sample that answered wrong regarding the schizophrenia case diagnosis and had “high” stigma score (n = 41) was not significantly different in terms of its number compared to the one that answered correctly and had “high” stigma score (n = 32).

One aspect that reduces the strength of this study is that the target number of the participants could not be reached, meaning a 95% confidence level with a ±5% margin of error could not be reached. Another limitation is the lack of contact between HCPs at the KAMC in Makkah with mental illness patients owing to lack of psychiatric inpatient departments. However, this limitation may be a strength for this study, as we were able to primarily measure medical HCPs rather than psychiatric HCPs. Although the vignette methodology in stigma studies has many benefits, the participants do not respond to real patients, and therefore miss appearance and other nonverbal cues that are typically present in real interactions.

The social stigma level among HCPs against schizophrenia patients is higher than that against OCD patients. The factor of knowing the diagnosis of the case has a positive effect on decreasing stigma toward OCD patients but not toward schizophrenia patients. Educational awareness about stigma against mental illness patients to HCPs, rather than focusing on increasing literature knowledge, may decrease stigma among HCPs.

This paper aims to analyse the Sharīʿah premises of waqf (Islamic endowment), followed by dilating on the nature of argumentation among the classical jurists on its rules and principles. The paper critically analyses the edifice of the applied juristic analogy of different early jurists in deriving various waqf doctrines. The objective of analysing the jurisprudential framework of waqf in its classical mould is to conceptualise the methods, mechanism and nature of juristic analogies in deriving the waqf principles. This analysis is critical to understand the scope of jurisprudential flexibility in modern awqāf.

The paper is an outcome of a library-based research. It uses the classical jurisprudential treatises of waqf with an aim to analyse the Sharīʿah basis of the institution, the premises of its key principles and the applied juristic analogy to derive the same. The paper covers the classical waqf books and treatises from the four Sunni schools of jurisprudence and uses a textual analysis method.

The paper finds that in its initial phase, the conceptual framework of waqf was not unanimously agreed by all jurists, rather its Sharīʿah permissibility remained critically disputed among them for a while. Though, the opinion of those jurists who approved the Sharīʿah-validity of waqf was to prevail in the later stage, disagreement persisted with reference to its necessary features and defining criteria. It is found that in the classical waqf literature, two most disputed aspects of waqf jurisprudence constituted the requirements for completion of a waqf and its ownership status.

This study neither covers the historical contribution of waqf among the Muslim societies nor touches on the empirical aspects of modern waqf. Rather, the focus of the study is limited to analysing the classical jurisprudential discourse of waqf and distillation process of its rulings.

The objective of analysing the classical juristic discourse of waqf is to underline the premises of classical juristic analogy in determining the framework of fiqh al-awqāf (jurisprudence of waqf) in its classical permutations and to learn how to adopt a similar approach for deduction of new waqf rulings.

This paper adds original value to the body of waqf literature for analysing the classical waqf rulings distillation process along with examining the methods and mechanism of juristic analogy.

The purpose of this paper is to determine whether the representation of women on the boards (WOMBDs) and audit committees is associated with a reduction in the practice of earnings management and whether women are associated with income reducing (conservative) rather than income-increasing (aggressive) earnings management. The authors further argue that family ownership moderates the relationship between the presence of WOMBDs and audit committees and earnings management.

The study uses non-finance firms listed on Bursa Malaysia over a period of four years, i.e. from 2008 until 2011.

The evidence reveals that the presence of WOMBD or audit committee is not associated with a propensity for earnings management. In addition, the evidence also reveals that family ownership does not interact either with WOMBD or with women on the audit committee (WOMAC) to influence the propensity for earnings management. Nevertheless, the additional analyses show that, while women on boards are not associated with income-decreasing accruals, the presence of women on audit committees leads to income-reducing earnings management. The evidence further reveals that family ownership does not interact with either WOMBD or WOMAC to influence income-decreasing earnings management.

This study extends prior research on the role of women directors and women audit committee members on earnings management focussing on family ownership. Further, the study also examines the direction of earnings management as opposed to the most prior studies, which mainly focus on the propensity of earnings management.

The purpose of this paper is to investigate Malaysian companies’ compliance with mandatory accounting standards. Specifically, this study examines the efficacy of agency-related mechanisms on the degree of compliance with Financial Reporting Standards (FRS) 101, Presentation of Financial Statements. It so proceeds by focussing on corporate governance parameters (board characteristics and ownership structure) and other firm characteristics.

Using data drawn from a sample of 105 Malaysian companies listed on the ACE market in 2009, the authors employ multiple regression analysis models to establish whether selected corporate governance and company-specific characteristics (proxying for agency-related mechanisms) are related to the degree of disclosure compliance.

The results indicate that the overall disclosure compliance is high (92.5 per cent). Furthermore, only firm size is positively associated with the degree of compliance. The other variables, those consisting of board independence, audit committee independence, CEO duality, the extent of outside blockholders’ ownership and leverage, do not show any significant relationship with the degree of compliance.

This study focusses on only one accounting standard (FRS 101) that is mandatory in Malaysia. FRS 101 is both structured and rigid, leaving no room for companies to conceal any particular information. The sample of Malaysian companies selected is restricted to those listed only on the ACE market. As such, the results cannot be generalised to every company in Malaysia.

These results have important implications for policy makers because they suggest that whilst agency-related mechanisms may motivate compliance with mandatory standards, full compliance may be unattainable without regulations.

This is the only study in Malaysia to investigate the impact of regulatory requirements on corporate compliance level by companies listed on the new ACE market, which was introduced by the Bursa Malaysia in August 2009. This study contributes to the literature by examining the effects of both company-specific characteristics (such as company size, company age, liquidity, etc.) and corporate governance parameters on the degree of corporate compliance with mandatory disclosure, simultaneously, in contrast with prior studies which have examined them in isolation.