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Original Research

SUSTAINABILITY OF FAMILY BUSINESS THROUGH SUCCESSION IN INDONESIA

VITA WIANA BUDI CAHYA 1, GALANG FIRMAN MAULANA 2, RAFDAN RAHINNAYA 3, and EISHA LATARUVA 4.

Vol 19, No 06 ( 2024 )   |  DOI: 10.5281/zenodo.11612836   |   Author Affiliation: Department Master of Management, Faculty Economic and Business, Diponegoro University, Semarang, Indonesia 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 230-241   |   Published on: 09-06-2024

Abstract

Family-run businesses are a key component of a country's economy, ranging from large corporations to small and medium-sized enterprises. Achieving long-term success in family businesses can be challenging due to various factors, such as succession planning, innovation, and adapting to changing market dynamics. This article explores the dynamics of sustainable family businesses in Indonesia through the lens of succession.Using a systematic literature review, the article examines factors influencing succession, strategies to ensure successful transitions, and the impact of family culture and values on the succession process. The research methodology involved a comprehensive search of relevant articles using keywords related to succession in Indonesian family businesses.The findings highlight the critical role of successful succession in sustaining family businesses across generations. Key factors for success include the establishment of family councils, structured agreements, and effective corporate governance. Additionally, the successor's readiness, family relationships, and the integration of cultural values are significant in shaping successful succession.While best practices such as structured succession planning are identified, the research underscores that there is no one-size-fits-all approach. Adaptation to cultural norms and interdisciplinary collaboration are vital in addressing the unique challenges faced by family businesses in Indonesia, ensuring their ongoing success and sustainability.


Keywords

Family Business, Indonesia, Succession, Sustainability.