This study investigates the effects of downward (management-to-employee) and upward (employee-to-management) communication reinforcement on organizational performance in family businesses in Kuwait. The study employs a mixed-methods approach, integrating survey data and interviews to evaluate leadership responsiveness, feedback systems, and communication clarity.

Results show that although the upward and backward in effective communication hindered performance and development plans of some families. Lack of transparent communication and weak communication channels led to disparate consensus spirit and common vision among all members. Moreover, the lack of harmony among members of the family business, along with the hassle, feud, and disputes reinforces an individualistic rather than a collective work culture. Consequently, this leads to ineffective and non-transparent backward and upward communication, as well as miscommunication and misinformation flow.

These obstacles have a detrimental effect on decision-making quality and employee engagement. While qualitative insights show that fear of retaliation and inconsistent feedback are important concerns, quantitative data linked clear, honest communication to higher motivation and performance. To illustrate the dangers of inadequate communication, the paper cites both domestic examples that include three family businesses while international examples include: Volkswagen, Wells Fargo, and Kuwait Airways. To improve responsiveness and inclusion, suggestions include digital platforms, leadership development, organized interdepartmental meetings, and anonymous feedback tools. This study offers doable tactics to increase institutional efficacy and enhance internal communication.