SMALL MEDIUM SIZED ENTERPRISES IN SAUDI ARABIA: CONCEPTUALIZING AN EFFECTIVE SUCCESSION PLANNING

Abstract

Many studies have been conducted not only to identify but also to scrutinize the underlying significance of succession planning in various organizations as well as various geographical contexts. However, the underlying role of succession planning in Saudi Arabia has been constrained to only family businesses and there is no cohesive research about the importance of succession planning in Small and Medium Sized Enterprises in Saudi Arabia. Although Small Medium Size Enterprises (SMEs) are generally well equipped with expert expatriates, but the lack of experienced and specialized local managers and executives has impeded the progress toward “Saudizationâ€. The process of “Saudization†has begun in Saudi public as well as private sectors in order to fill the gap, however, its efficacy in dealing with the challenges of replacing of the expatriate workforces by the skilled local managers remained unknown. To do so, there is a strong need to adopt a comprehensive succession-planning framework in order to engage local executives. It was in this context that the authors have undertaken the study about an effective succession planning in SMEs companies in Saudi Arabia. An in-depth review of the literature has been conducted prior to conceptualization of the findings. The identified components of an effective succession planning have been represented as a conceptual framework followed by a conclusion and a need for further research.