Factors Affecting the Succesion Process of the Family Business in East Java, Indonesia

2019 ◽  
Vol 10 (10) ◽  
pp. 1009-1016
Author(s):  
Sasongko Basuki ◽  
◽  
J. E. Sutanto ◽  
Keyword(s):  
Family Business ◽  
Significant Influence ◽  
Succession Planning ◽  
Large Scale ◽  
Family Members ◽  
Analysis Tool ◽  
Factors Affecting ◽  
Successful Transition ◽  
The Family ◽  
Succession Process

The purpose of this research is to analyze the factors affecting the succession process in the family business in East Java, Indonesia. The variables used in this research are succession planning (X1), preparation of heirs (X2), relationships among family members (X3) as independent variables while succession process (Y) and post transition business performance (Z) act as dependent variables. Questionnaires are used to collect the study data. Additionally, quantitative analysis with path analysis is used as analysis tool. The population in this study is medium and large scale family business in Surabaya, Sidoarjo, Mojokerto, Pasuruan, dan Gresik. Samples are taken from 43 family businesses with total employment of minimum 20 and have performed at least one generational transition. The statistic analysis findings reflect the non-significant relationship between succession planning and preparation of heirs towards successful transition. While relationships among family members gives the most significant influence on the successful transition, as well as the significant influence between succession process to the post transition performance.

Passing the baton

2016 ◽  
Vol 24 (3) ◽  
pp. 35-37 ◽  
Author(s):  
Pauline Drury
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Firms ◽  
Longitudinal Research ◽  
Panel Discussion ◽  
Psychological Impact ◽  
Food Group ◽  
Content Type ◽  
Factors Affecting ◽  
The Family

Purpose The purpose of this paper is to consider the factors affecting the success of succession planning in family businesses. Design/methodology/approach The study reports on a panel discussion in which the former chairman of the William Jackson Food Group describes the processes put in place to manage succession at this family firm and his own experience of handing over to his successor. Findings Once upon a time, saying that you were going into the family business marked the end of any career discussion. Now it’s just the beginning – interest in family firms has never been greater. Succession planning is a subject guaranteed to generate questions – everyone wants to know how to get it right. Fortunately, it’s an area where some are happy to share their experience. Research limitations/implications The paper highlights the need for more longitudinal research on family firms. Practical implications This paper provides a practical guide to structures and processes that can facilitate succession planning in family firms. Social implications It draws attention to the emotional and psychological impact of succession on the retiring individual and the need to create life structures to replace former business involvement. Originality/value This paper aims to present a frank discussion of the approach to succession planning taken by one family business and the broader research questions that it raises.

scholarly journals Sucessão e conflitos: proposições de pesquisa acerca das empresas familiares

2020 ◽  
Vol 19 (2) ◽  
pp. 6-27
Author(s):  
Djeimi Angela Leonhardt Neske ◽  
Leonardo Alves de Oliveira Casimiro ◽  
Ivano Ribeiro
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Relationship Conflict ◽  
Governance System ◽  
Complete Understanding ◽  
The Family ◽  
Vast Literature ◽  
Succession Process ◽  
Or Organization ◽  
The Relationship

Objective: This paper aims to identify the implications of conflict on a succession process in family business.Methodology: For the development of this literature review, we based ourselves on the behavioral view of conflict, presenting a set of propositions and a framework for investigations in the field.Originality: Even with the vast literature on conflict, there is still no complete understanding of its effects on a group or organization. In a family business, the process of succession can intensify conflicts, since it includes the simultaneous relationship between the business and the family, and there is a need for greater understanding of this phenomenon.Main results: The results suggest that in family organizations, the relationship conflict may be present and negatively impact the succession process. Thus, management models focused on the collaborative view of conflicts can positively reflect the succession planning and the performance of the new management.Theoretical contributions: As a contribution, we present a series of propositions that provide indications of the effects of conflict on the succession of family businesses, highlighting the importance of a governance system that provides balance to the process.

Family protocol: how it shapes succession in family firms

2018 ◽  
Vol 41 (3) ◽  
pp. 35-44
Author(s):  
Cláudia Matias ◽  
Mário Franco
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Firms ◽  
Planning Process ◽  
Content Type ◽  
Documentary Analysis ◽  
The Family ◽  
Succession Process ◽  
Practical Implications

Purpose This study aims to understand the role that family protocol can have in the succession planning process of family businesses. Design/methodology/approach For this purpose, the authors decided on a qualitative approach and performed an exploratory case study in Portugal: one firm with a family protocol. As data collection techniques, interviewing, direct observation and documentary analysis were used. Findings Based on the empirical evidence, it is concluded that a family protocol can help succession planning and favour the continuity and survival of the family business. Practical implications This study shows the relevance of a family protocol for the succession process that seems to be at the basis of family firms’ continuity, survival and minimising their failure. Originality/value Although family firms are many in number and central in the dynamics of the world economy, the family protocol has not been approached as a determinant of a successful succession process. This holds particularly for the realm of family firms.

Succession Experiences in Philippine Family Businesses

2000 ◽  
Vol 13 (1) ◽  
pp. 15-35 ◽  
Author(s):  
Andrea L. Santiago
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Asian Country ◽  
Family Values ◽  
The Philippines ◽  
Business Owners ◽  
Family Businesses ◽  
Leadership Succession ◽  
The Family ◽  
Succession Process

Western research suggests that family business owners must prepare for leadership succession in a systematic manner to ensure continuity. A review of the succession experiences of eight family businesses in the Southeast Asian country of the Philippines seems to indicate that the key to smooth succession for group-oriented families is not entirely dependent on succession planning. Rather, a family business's smooth succession depends on the succession process being consistent with family values. In fact, valuing the preservation of the family unit helps to avoid the ill effects that normally accompany the absence of succession planning.

Rough Family Justice: Equity in Family Business Succession Planning

1990 ◽  
Vol 3 (1) ◽  
pp. 3-22 ◽  
Author(s):  
Glenn R. Ayres
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Members ◽  
Best Interests ◽  
The Family ◽  
Business Succession ◽  
Family Business Succession

For the family business facing succession issues, the approach of rough family justice may serve as an effective guide for preserving relationships among family members by promoting the best interests of the business.

scholarly journals Sucessão e conflitos: proposições de pesquisa acerca das empresas familiares

2020 ◽  
Vol 19 (2) ◽  
pp. 6-27
Author(s):  
Djeimi Angela Leonhardt Neske ◽  
Leonardo Alves de Oliveira Casimiro ◽  
Ivano Ribeiro
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Relationship Conflict ◽  
Governance System ◽  
Complete Understanding ◽  
The Family ◽  
Vast Literature ◽  
Succession Process ◽  
Or Organization ◽  
The Relationship

Objective: This paper aims to identify the implications of conflict on a succession process in family business.Methodology: For the development of this literature review, we based ourselves on the behavioral view of conflict, presenting a set of propositions and a framework for investigations in the field.Originality: Even with the vast literature on conflict, there is still no complete understanding of its effects on a group or organization. In a family business, the process of succession can intensify conflicts, since it includes the simultaneous relationship between the business and the family, and there is a need for greater understanding of this phenomenon.Main results: The results suggest that in family organizations, the relationship conflict may be present and negatively impact the succession process. Thus, management models focused on the collaborative view of conflicts can positively reflect the succession planning and the performance of the new management.Theoretical contributions: As a contribution, we present a series of propositions that provide indications of the effects of conflict on the succession of family businesses, highlighting the importance of a governance system that provides balance to the process.

scholarly journals Leadership and Innovation in Family Business

2020 ◽  
Vol 1 (1) ◽  
pp. 1-10
Author(s):  
Inggrid Oktavia ◽  
Sujoko Efferin ◽  
Noviaty Kresna Darmasetiawan
Keyword(s):  
Leadership Style ◽  
Family Business ◽  
Research Method ◽  
Qualitative Method ◽  
Family Members ◽  
Basic Research ◽  
Factors Affecting ◽  
The Family

Abstract—This research is a basic research that discusses leadership style in family business and innovation. Family business as a phenomenon has been a strong topic of conversation in society since the late 1990s, especially in Indonesia. Family business is one of the factors affecting the current Indonesian economy. Family business is also one of the very big roles in creating employment. The research method used is a qualitative method by interviewing, observing, and analyzing documents to support the validity of the data. Family business is a business that is determined, managed, and regulated by one or more generations of families or family members, where the values, vision, and mission determined by the founder will be strictly guarded. Leadership style and type of company are factors that influence family business. In addition to leadership and innovation styles, how to manage and manage subordinates has an important role in the family business. Keywords : leadership style, innovation, family business Abstrak— Penelitian ini adalah penelitian dasar yang mengeksplorasi gaya kepemimpinan dalam bisnis keluarga dan inovasinya. Bisnis keluarga sebagai sebuah fenomena telah menjadi topik pembicaraan yang kuat di tingkat masyarakat sejak akhir 1990-an, terutama di Indonesia. Bisnis keluarga adalah salah satu faktor yang mempengaruhi perekonomian Indonesia saat ini. Bisnis keluarga juga menjadi salah satu peran yang sangat besar dalam menciptakan lapangan kerja. Metode penelitian yang digunakan adalah metode kualitatif dengan cara wawancara, observasi, dan analisis dokumen untuk mendukung validitas data. Bisnis keluarga adalah bisnis yang dimiliki, dikelola, dan diatur oleh satu atau lebih generasi keluarga atau anggota keluarga, di mana nilai-nilai, visi, dan misi yang ditetapkan oleh pendiri akan dijaga secara ketat.  Gaya kepemimpinan dan jenis perusahaan merupakan faktor yang mempengaruhi inovasi  bisnis keluarga. Selain gaya kepemimpinan dan inovasi, cara mengendalikan dan mengelola bawahan memiliki peran penting dalam bisnis keluarga. Kata kunci : gaya kepemimpinan, inovasi, bisnis keluarga  

Social identity and family business: exploring family social capital

2015 ◽  
Vol 5 (2) ◽  
pp. 157-181 ◽  
Author(s):  
Torsten Schmidts ◽  
Deborah Shepherd
Keyword(s):  
Social Capital ◽  
Social Identity ◽  
Family Business ◽  
Social Identity Theory ◽  
Identity Theory ◽  
Family Members ◽  
Content Type ◽  
Family Social Capital ◽  
The Family ◽  
The Impact

Purpose – The purpose of this paper is to use social identity theory to explore factors that contribute to the development of family social capital. Effects are investigated both for the family and the business. Design/methodology/approach – A single in-depth case study focussing on the family unit was coducted within a fourth-generation family business involved in the arts retailing. Findings – The findings suggest that social identity theory is a useful lens to explore the development of family social capital. The six themes identified highlight that there is a normative and an affective dimension, leading to family members’ desire to uphold the status of the business. Evidence suggests that the normative factors may be both positively and negatively related to the development of family social capital, due to their potentially restrictive nature. Originality/value – The paper’s findings imply that social identity can contribute to understanding family dynamics. Evidence highlights various factors for family members that are not involved in the family business to uphold its status. This is attributed to the emotional significance of the business to the family’s identity. Furthermore, this paper suggests that the strong focus on norms and values, which developed gradually, may have adverse effects on the identification with the business and the willingness to uphold its status. Propositions are offered to provide guidance for future research to investigate this controversial evidence regarding the impact of value orientation on family social capital.

Family succession, professionalization and internationalization: a study of Brazilian family businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Augusto Dalmoro Costa ◽  
Aurora Carneiro Zen ◽  
Everson dos Santos Spindler
Keyword(s):  
Family Business ◽  
Family Members ◽  
Secondary Data ◽  
Family Businesses ◽  
Three Dimensions ◽  
Content Type ◽  
The Family ◽  
Two Generations ◽  
Internationalization Strategies ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between family succession, professionalization and internationalization in family businesses within the Brazilian context.Design/methodology/approachThe paper presents a multiple-case study method with three Brazilian family businesses that have at least two generations of the owning family involved in the business and an international presence of at least three years. In-depth interviews and secondary data were undertaken with family and non-family members of each case.FindingsThe authors' results show that a family business can boost its internationalization by introducing both succession planning and professionalization on international activities. As family members tend to be more risk-averse and focused on keeping the family business within the family, professionalization is a way of improving the firm's ability to expand internationally. This process tends to lead to lower performance by the firm for the first few months or the first year after the investment, but afterward, international performance tends to grow exponentially.Originality/valueOnly a few studies have been concerned on the relationship of these three dimensions. Thus, the research takes into account that professionalization and succession lead family businesses to improve their internationalization strategies.

scholarly journals Factors Affecting Family Business Succession in the Food Hawking Business in Malaysia

2020 ◽  
Author(s):  
Jonathan Cho Kin Ng
Keyword(s):  
Family Business ◽  
Family Members ◽  
Theoretical Aspect ◽  
Survey Study ◽  
Kuala Lumpur ◽  
Factors Affecting ◽  
The Difference ◽  
Business Succession ◽  
Family Business Succession ◽  
Potential Moderator

Abstract Food hawking businesses around the world largely contribute to the economy of countries and provides much needed jobs that feed employment, even though earnings are low. The food hawking business in Malaysia is under threat of extinction due to the reluctance of the next generation in taking over the food hawking businesses from the elderships. As research in the area of family business succession is scarce, this study serves to add to the theoretical aspect of the area. The purpose of this study was to analyse the effects of vending environment, operating hours, successor willingness, relationship among family members and preparation level of heir on the intention of family succession in the food hawking business in Malaysia. Leader’s approval was also studied as a potential moderator. The methodology used was a questionnaire survey study design with a sample size of 208, respondents were obtained via convenience sampling from Kuala Lumpur and Penang as hawkers are abundant in these two locations. Findings show that vending environment, successor willingness, relationship among family members and preparation level of heir have a significant effect on the intention of family succession in the food hawking business in Malaysia. Leader’s approval was found to be insignificant as a moderator. Operating hours was not significant, possibly due to the difference in importance placed by Malaysian hawkers in succession.

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