Strategy Formulation Process in Large Family-Based Businesses

Abstract: This paper proposes a strategy formulation process for large family businesses in Gulf Cooperation Council (GCC) countries. After analyzing and critically evaluating both the formal strategy formulation process theory and adaptive strategy formulation process theory, a novel ambidexterity strategy formulation process was developed. To verify this new process, structured interviews with an associated questionnaire were used with 15 CEOs and 15 strategic managers from large family businesses in Gulf countries. The results show the new process is seen as important by all participants. However, they are not effective enough in doing all of the activities. Also, it has been found that most of companies are adopting mixed top down/bottom up and mixed iterative and linear processes. This research is the first to investigate strategy formulation process in large family businesses. This paper can help in understanding the strategic management approach of business leaders in GCC countries.