THE CHALLENGES OF FAMILY BUSINESS SUCCESSION PROCESS: A CASE STUDY OF TWO MAJOR BATIK PERANAKAN ENTREPRENEURS IN PEKALONGAN AND SOLO

Lili Kristanti,Maureen Nuradhi

doi:10.33021/ijfbp.v2i1.1424

Abstract

<p>Family business has many challenges to sustain for generations. Two legendary Peranakan batik entrepreneurial families halted their businesses at the third generation and this research looks for the causes of this failure. Through qualitative research method, the conclusion drawn is that there is no mature succession planning from the predecessor to the successor. Meanwhile, the difference in motivation and commitment of the next generation of these two family businesses do not seem to cause a difference in the final journey of Batik Oey Soe Tjoen and Batik Tiga Negeri. Factors beyond succession planning and commitment of future generations can be subject to further research studies.</p><p> </p>

Highlights

On October 2, 2009, UNESCO designated Batik as a world cultural heritage originating from Indonesia and in the category of intangible cultural heritage
The research method chosen was qualitative, by conducting interviews, observing the products, and processing data from two well-known batik peranakan entrepreneur families in Java. Both of those prominent batik peranakan firms have similar situation, still they will be compared in the stages of succession planning, succession process, and the causes why they can survive more than three generations
The Batik Tiga Negeri family company can only last three generations and the third generation that manages Batik Oey Soe Tjoen is already planning to end their business in five years

Summary

Introduction

On October 2, 2009, UNESCO designated Batik as a world cultural heritage originating from Indonesia and in the category of intangible cultural heritage. Long before that batik had become a part of Javanese culture. P. Rouffaer, an Indonesian researcher from the Netherlands said that the Gringsing pattern of batik has been known since the 12th century in Kediri. Batik developed and expanded in Java at the end of the 18th century (Dharsono, 2007)

Methods

Discussion

Conclusion