Abstract
<p>Nowadays, family businesses are of high number in countires and contribute to the development of the economy. This research was conducted due to the importance of family business survival and it focuses on factors that affect their performance. Recently, family businesses have been identified as one of the concerns in the global entrepreneurial development agenda. This is because of the existing problem which is caused by family business owners avoid planning and treat succession as a problem instead of an opportunity. This impacts the continuity of the family-owned business. This research is made to emphasize the importance of planning and the drawbacks of negative bias in viewing succession as a problem. This study is expected to make family business owners understand the importance of planning and treating succession as an opportunity to achieve continuity. Qualitative research method was chosen as the method of the research with first generation family business owners as the key informants. Three key informants are chosen; Mr. Untoro A. Suryadi, Mr. IS and Mr. AS. In conclusion, family business should stop strategizing succession and treat succession as a practice.</p>
Highlights
Family businesses have been identified as one of the concerns in the global entrepreneurial development agenda (Lucky, Minai, and Isaiah, 2011)
Lack of succession planning: Discussions of planning usually leads to principles and procedure of formal planning, and this type of planning is based on laws, regulations and norms
Lack of succession planning: Willingness is an important part of the succession plan for perceived business continuity, without successor willingness the succession plan is of no use (Yang, Xi, and Han, 2013)
Summary
Family businesses have been identified as one of the concerns in the global entrepreneurial development agenda (Lucky, Minai, and Isaiah, 2011). It can be concluded that ninety-seven per cent (97%) of businesses in Indonesia are family-owned. Businesses have a high interest in knowing how to handle succession well (Haag, 2012) This topic must be highly studied because the societal impact of family-owned firms is high as it increases gross world product and employment (Astrachan, 2010). Many researchers like Christensen (1953), Dyer (1986), Handler (1989), Lansberg (1988), Rosenblatt, de Mik, Anderson, and Johnson (1985), Tashakori (1977), Ward (1987) acquiesce that succession planning highly affects the continuity of family businesses. In spite of the importance, researches like Christensen (1953), Handler (1989), Hershon (1975), Lansberg (1988), Tashakori (1977), Trow (1961), Ward (1987) found that succession planning is usually not done by family-owned firms (Handler, 2009). This study is expected to provide an understanding of these following problems: 1) How are business transitions through generations by not viewing succession as a negative bias? 2) Why is planning insisted upon in theory but not practised by family businesses? 3) Which factors of family business are included to guarantee family business continuity? The rest of the study is organized as follows: a review on literature, research methods, analysis of the case study, discussions and recommendation
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