Influence of situational factors, managerial characteristics and strategic choices on holding companies' performance


Ali Defalla, Basil Mahmod (2023) Influence of situational factors, managerial characteristics and strategic choices on holding companies' performance. PhD thesis, Multimedia University.

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This study addressed the existing knowledge gap regarding the association between executive management traits and holding company performance, focusing specifically on the context of emerging nations like Saudi Arabia. Limited research has investigated how managerial characteristics, situational factors, and strategic choices collectively affect holding company performance. Additionally, only a few studies have examined the mediating role of strategic decisions in the link between management characteristics and holding company performance. By examining these factors, this study aimed to shed light on the background and issues surrounding the problem. Neglecting crucial elements such as situational factors, managerial characteristics and strategic choices is likely to result in poor performance for holding companies, leading to unfavourable strategic directions and decisions that would affect company performance and considerably jeopardise their stability. This study expands the body of knowledge by exploring the influence of situational factors, managerial characteristics, and strategic choices of executive management in improving the performance of holding companies in Saudi Arabia. In addition, it examined the role of strategic choices as a potential mediator between managerial characteristics and holding company performance. Grounded in the Upper Echelons Theory, several determinants of holding companies’ performance were identified: situational factors (organisational culture, integrative communication, and ownership structure), managerial characteristics (leadership style and executive management diversity), and strategic choices (administrative complexity, top management turnover and financial leverage). A quantitative research approach was applied to achieve the study’s objectives, utilising a questionnaire administered through a purposive sampling technique. Data were collected from a cross-sectional survey targeting low, middle, and top executive management levels as key informants (n=190) within commercial Saudi holding companies and were subsequently analysed using SPSS and SmartPLS. In the study, fifteen direct hypotheses were proposed, of which ten were supported and five were not. Additionally, of the six indirect hypotheses posited, two were supported and four were not supported. The key findings revealed that strategic choices (administrative complexity, top management turnover and financial leverage) exerted a significant influence on performance of holding companies. The findings also showed that strategic choices (administrative complexity and top management turnover) mediated the relationship between managerial characteristics (executive management diversity) and holding company performance. The main theoretical contribution of this study lies in the validation of specific antecedents affecting holding companies’ performance in Saudi Arabia. Managerial implications are offered to guide executive management leadership; for example, continuously enhancing communication ability to improve decision-making, as well as diversifying ownership structure and developing leadership potential which are imperative. In addition, it is also recommended that holding companies stringently focus on issues such as complexity, turnover, and financial leverage to enhance performance.

Item Type: Thesis (PhD)
Additional Information: Call No.: HD2741 .B37 2023
Uncontrolled Keywords: Holding companies
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD2350.8-2356 Large industry. Factory system. Big business > HD2709-2930.7 Corporations. Including international business enterprises, diversification, industrial concentration, public utilities > HD2741 Holding companies. Corporate governance
Divisions: Faculty of Management (FOM)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 07 Feb 2024 06:11
Last Modified: 07 Feb 2024 06:11


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