scholarly journals The Determinants of a Successful Family Business Succession in Indonesia: A Multiple Case Study

2018 ◽  
Vol 1 (2) ◽  
pp. 87
Author(s):  
Suresh Kumar ◽  
Qireina Prameswari
Keyword(s):  
Family Business ◽  
Significant Proportion ◽  
Family Businesses ◽  
Related Factors ◽  
Business Context ◽  
Multiple Case ◽  
Business Succession ◽  
Relationship Of ◽  
Family Business Succession

<p>Family businesses play an important role in both developed and developing countries. They employ a majority of workforce establishing the newest jobs and generating a significant proportion of the gross domestic product. About 96% of the 165,000 companies established in Indonesia are family businesses. However, the survival rate of passing through the stage of second generations in family business is very low. This research has been conducted to analyse the determinants of successful family business successions. Qualitative research method was used to study four families. The conclusion from the study was that the determinants of successful family business succession are managing a complex relationship of successors and incumbent related factors, family context, business context, and having a structured agreement system.</p>

scholarly journals Family Business Succession in Different National Contexts: A Fuzzy-Set QCA Approach

2019 ◽  
Vol 11 (22) ◽  
pp. 6309 ◽  
Author(s):  
José António Porfírio ◽  
Tiago Carrilho ◽  
Joseph Hassid ◽  
Ricardo Rodrigues
Keyword(s):  
Family Business ◽  
Fuzzy Set ◽  
Qualitative Comparative Analysis ◽  
Family Businesses ◽  
Expectation States ◽  
Succession Plan ◽  
Limited Applicability ◽  
Expectation States Theory ◽  
Business Succession ◽  
Family Business Succession

Family business succession is a key topic that has attracted considerable attention from researchers, especially in the last decade. Most research, however, is based on case studies with limited applicability and fails to present comparisons across international contexts that highlight differences in succession processes. We apply expectation states theory to analyze a sample of 128 observations in two Southern European countries, Portugal and Greece. We study configurations of successors’ characteristics, family business characteristics, the existence (or absence) of a succession plan, and successors’ motivation to succeed. Our aim is to reveal how these issues affect successors’ perceptions of preparation for succession using fuzzy-set qualitative comparative analysis (fsQCA). Family businesses are a dominant organizational form all over the world, and succession issues are critical for the sustainability of family businesses. Our findings suggest that different configurations of conditions influence successors’ perceptions of preparation for family business succession. Moreover, we verify the influence of cultural differences on these processes. This research helps fill a gap in the literature, showing the role of a set of characteristics in successors’ perceptions of preparation for family business succession. Our conclusions provide insight into the types of policies that can promote successful family business succession.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Succession in the Family Business: Challenges for Successors from an Entrepreneurial Perspective

2014 ◽  
Vol 15 (4) ◽  
pp. 279-284 ◽  
Author(s):  
Daniela Weismeier-Sammer ◽  
Isabella R. Hatak
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Teaching Case ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Business Challenges ◽  
Family Business Succession

Kronmann Wholesale and Retail is an outstanding family business with more than 300 years of history. This teaching case tells the story of two cousins who follow their fathers into a business full of tradition. The case gives students the opportunity to gain insights into the complex succession process of family businesses, as well as the challenges with which successors are confronted in the course of family business succession.

Game Theory and Family Business Succession

2012 ◽  
Vol 26 (1) ◽  
pp. 51-67 ◽  
Author(s):  
Tim Blumentritt ◽  
Timothy Mathews ◽  
Gaia Marchisio
Keyword(s):  
Game Theory ◽  
Family Business ◽  
Family Businesses ◽  
Business Succession ◽  
Succession Events ◽  
Family Business Succession ◽  
Primary Contribution

One of the most significant challenges to enduring family businesses is the process of passing the leadership of a firm from one generation to another. This article introduces game theory as a model for examining succession as a set of rational but interdependent choices made by individuals about a firm’s leadership. Its primary contribution is demonstrating the application of game theory to understanding the decisions and outcomes of succession events.

Case Study of Entrepreneurship and Family Business Succession on the View of Life Cycles

2012 ◽  
Vol 468-471 ◽  
pp. 484-487
Author(s):  
Jian An Zhu
Keyword(s):  
Life Cycle ◽  
Family Business ◽  
Product Life Cycle ◽  
First Generation ◽  
Life Cycles ◽  
Domestic Technology ◽  
The Right ◽  
Business Succession ◽  
Family Business Succession

In the most common cases, the first generation creates his business, accumulates wealth and waits for the right chance to hand them over to the second generation. The case study on Fotile Co. provides a perspective of both entrepreneurship and succession of family business. In 1996, Mao Li Xiang and his son, Mao Zhong Qun, started together a business on kitchen products. On the view of product life cycle, Mr. Mao Senior produced the clip reeds subcontracting for the state-owned TV set company and electric gas-lighting for international trade which were manufactured with imitation and at last waned after several years, until in 1996 he devoted himself to the third products, Chinese kitchenware, and beat Western technology with domestic technology and design in meeting the needs in Chinese kitchens. On the view of his individual life cycle, Mr. Mao Senior began with the accountant and salesman in commune and brigade enterprise in the 1970’s, manager of in the township and village enterprises in the 1980’s and the owner of family business in 1990’s when he handed over the right of control and finished the professionalization of management, the upgrading of enterprises as well.

scholarly journals Family Business Transgenerational Continuity in Transition Economies: Towards a Conceptual Model

2013 ◽  
Vol 4 (2) ◽  
pp. 150-167
Author(s):  
Olga Štangej ◽  
Vida Škudienė
Keyword(s):  
Soviet Union ◽  
Conceptual Model ◽  
Transition Economies ◽  
Family Business ◽  
Former Soviet Union ◽  
Outcome Measurement ◽  
Family Businesses ◽  
And Performance ◽  
Business Succession ◽  
Family Business Succession

Within classification of emerging economies, Lithuania as part of the former Soviet Union belongs to the group of transition economies. In this paper, we discuss how theorizing leadership succession may contribute to the key strategic questions of succession arising among family businesses in transition economies. The purpose of this study is to revisit the phenomenon of family business succession and linkages among the goals of succession and performance measures of family business. Our study aims at providing three contributions to the current literature. First, it highlights the role of transgenerational continuity of family businesses in transition economies. Second, it revisits the concept of succession through identification of the third – leadership – dimension alongside management and succession. Third, it provides a conceptual model of family business succession outcome measurement and implications for further research.

scholarly journals Family Business Succession: What’s Motivation Got to Do With It?

2019 ◽  
pp. 089448651989475 ◽  
Author(s):  
Marylène Gagné ◽  
Connor Marwick ◽  
Stéphanie Brun de Pontet ◽  
Carsten Wrosch
Keyword(s):  
Intrinsic Motivation ◽  
Family Business ◽  
Family Businesses ◽  
Global Business ◽  
Local Economies ◽  
Psychological States ◽  
Successful Business ◽  
Business Structures ◽  
Business Succession ◽  
Family Business Succession

Family businesses represent 80% of global business structures, but the low rate of successful transgenerational succession can have drastic implications for employees and local economies. A 12-year longitudinal study of 89 Canadian family businesses revealed that successors’ confidence and perceptions of incumbent support predicted successor intrinsic motivation to take over the business, which in turn predicted whether the business was successfully transferred 12 years later. Incumbent support and intrinsic motivation mediated the relation between incumbent trust in the successor and successful business succession. This study demonstrates the dual importance of incumbent and successor psychological states in determining succession outcomes.

scholarly journals The impact of culture-related factors on good governance in Greek family businesses in South Africa

2011 ◽  
Vol 42 (2) ◽  
pp. 1-14 ◽  
Author(s):  
C. Adendorff ◽  
C. Boshoff
Keyword(s):  
South Africa ◽  
South African ◽  
Family Business ◽  
Structural Equation ◽  
Good Governance ◽  
Primary Objective ◽  
Family Businesses ◽  
Related Factors ◽  
Business Context ◽  
The Impact

The size of the family business component of the South African economy suggests that it is the predominant way of doing business in South Africa. A large proportion of these family businesses are Greek-owned. More importantly it is estimated that approximately 95% of all Greek businesses in South Africa can be classified as family businesses. The sustainability of Greek family businesses requires that they maintain good governance practices that are both economically and environmentally acceptable to all stakeholders. It also requires that the next generation of Greek entrepreneurs effectively balance good governance of their businesses with their family commitments.The primary objective of this study was to identify and explore the internal, culturally-related factors that influence good governance to ensure the survival, growth and sustainability of Greek family businesses in South Africa. A theoretical model of good governance factors was proposed and tested using Structural Equation Modelling.The study found that perceived good governance in a South African Greek family business context needs to be managed in terms of three factors, namely risk control, the internal regulatory environment and the protection of the stakeholders' interest. The study found that needs alignment, cultural needs alignment, vision and ethnic entrepreneurial growth all impact directly or indirectly on perceived good governance in South African Greek family businesses.

scholarly journals Family business succession in the Mazovia Region in Poland – needs and barriers

2019 ◽  
Vol 50 (1) ◽  
pp. 81-90
Author(s):  
Ludmiła Walaszczyk
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Business Activity ◽  
Local Authorities ◽  
The Family ◽  
The Future ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession

Every year many companies disappear from the market due to the fact that there is no possibility to find the successor, who could take over the business activity. The owners do not wish to transfer their business to the heirs, not even mentioning the external successors. Thanks to the indication of needs and barriers of the family business successions, it will be possible to develop tools and services, which will improve the succession process in family companies and will help to maintain family companies in the future. In the article, the author presents the latest state of knowledge about the needs of and barriers to the succession of family businesses in the Mazovia Region in Poland. The author focuses on the results of unstructured interviews with entrepreneurs from family companies and representatives of local authorities.

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