FAMILY BUSINESS RESILIENCE STRATEGY IN INDONESIA
Abstract
A family is an economic entity consisting of individuals who aim to maximize satisfaction (as a comment) as well as profit (as a producer). The success of entrepreneurs building business goals and making timely decisions to achieve those goals in increasing competition and uncertain environments is certainly needed. Family companies are an interesting business phenomenon to study because of the various issues and challenges that must be faced by the company. The above problems cause family companies to be managed differently than managing non-family businesses, they build a company that at one time is also a family institution. This paper uses literature studies on family companies to find out important and crucial issues in the family business journey to provide an understanding of how to manage it becomes a strength for family companies. Reviews from literature studies show that family engagement and succession are key issues in the family business as well as being an advantage for family companies rather than family companies. Family engagement becomes a professional issue in family companies. The involvement of family members in family companies makes the high level of trust and mutual disassociation among family members has a guarantee of corporate stability and has the high financial strength, the company culture becomes strong, has independence in the actions and acculturation process of the next generation to the business world that occurred since childhood. Succession has been made as to the biggest classic and strategic issue in the family company. Experience and insight are the most important things to note in the next generation of family companies.
References
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Birley, S. (2002), “Attitudes of owner-managers’ children towards family and business issues”, Entrepreneurship Theory and Practice, Vol. 26 No. 3.
Casillas, J. & F. Acedo. 2007. Evolution of the Intellectual Structure of Family Business Literature: A Bibliometric Study of FBR, Family Business Review, 20 (2).
Chrisman, J., Chua, J., Kellermanns, F., Matherne, C. III and Debicki, B. (2008), Management journals as venues for publication of family business research, Entrepreneurship Theory and Practice, Vol. 32 No. 5.
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Carlock, R.S. and Ward, J.L. (2001), Strategic Planning for the Family Business: Parallel Planning to Unify the Family and Business, Palgrave Macmillan, New York, NY.
Chrisman, JJ., JH. Chua, & P. Sharma. 2005. Trends and Developments of a Strategic Management Theory of the Family Firm, Entrepreneurship Theory and Practice, September 2005, pp.555-575.
Casillas, J. & F. Acedo. 2007. Evolution of the Intellectual Structure of Family Business Literature: A Bibliometric Study of FBR, Family Business Review, 20 (2).
Chirico, F & Nordqvist, M 2010, Dynamic capabilities and trans generational value creation in family firms: The role of organizational culture , International Small Business Journal, vol 28.
Churchill, NC & Hatten, KJ 1987, Non-market based transfers of wealth and power: a research framework for family business', American Journal of Small Business.
Cromie, S & O'Sullivan, S 1999, 'Women as managers in family firms', Women in Management Review, vol. 14.
Danco, LA. 1991. The Founder’s Restless Family, Agency Sales, July, 52 -55.
Daspit, J.J., Holt, D.T., Chrisman, J.J. and Long, R.G. (2015), “Examining family firm succession from a social exchange perspective: a multiphase, multistakeholder review”, Family Business Review, Vol. 29.
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Goffee, R 1996, 'Understanding family businesses: issues for further research', International Journal of Entrepreneurial Behaviour & Research, vol. 2.
Gersick, KE, Lansberg, I, Desjardins, M & Dunn, B 1999, 'Stages and transitions: managing change in the family business', Family Business Review, vol. Xii.
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Habbershon, T.G., Williams, M. and MacMillan, I.C. (2003), “A unified systems perspective of family firm performance”, Journal of Business Venturing, Vol. 1.
Hamilton, E. (2011), “Entrepreneurial learning in the family business”, Journal of Small Business and Enterprise Development, Vol. 18.
Handler, W.C. (1994), “Succession in the family business: a review of the research”, Family Business Review, Vol. 7 No. 2.
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Kleiman, R & Peacock, E 1996-97, 'Family businesses as an economic phenomenon', Michigan Family Review, vol. 2.
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Miller, D., Steier, L., Le Breton-Miller, I., 2003. Lost in time: intergenerational succession, change and failure in the family business. J. Bus. Venturing 18.
Morris, MH, Allen, JA, Kuratko, DF & Brannon, D 2010, 'Experiencing family business creation: differences between founders, nonfamily managers, and founders and nonfamily firms', Entrepreneurship Theory and Practice, vol. 34.
Morris, M.H., Williams, R.O., Allen, J.A. and Avila, R.A. (1997), “Correlates of success in family business transitions”, Journal of Business Venturing, Vol. 12.
Pianna, BD, Vecchi, A & Cacia, C 2012, 'Towards a better understanding of family business groups and their key dimensions', Journal of Family Business Strategy, vol. 3.
Rubenson, G. and Gupta, A. (1996), “The initial succession: a contingency model of founder tenure”, Entrepreneurship: Theory and Practice, Vol. 21.
Santiago, AL 2000, 'Succession experiences in Philippine family businesses', Family Business Review, vol. XII.
Selznick, P., 1957. Leadership in Administration. Harper & Row, New York.
Scott, B.R., 1971. Stages of corporate development—Parts I and II. Harvard Case Services #9371-294 and 9-371295, Boston.
Schulze, WS & Gedojlovic, E 2010, 'Whither family business?', Journal of Management Studies, vol. 47.
Sharma, P, Chrisman, JJ & Chua, JH 1997, 'Strategic management of the family business: Past research and future challenges', Family Business Review, vol. 10, no. 1, pp. 1-35.
Lansberg, I 1988, 'The succession conspiracy', Family Business Review, vol. 1.
Sharma, P 2004, 'An overview of the field of family business studies: current status and directions for the future', Family Business Review, vol. XVII.
Sharma, P., Chrisman, J.J., Pablo, A.L. and Chua, J.H. (2001), “Determinants of initial satisfaction with the succession process in family firms: a conceptual model”, Entrepreneurship Theory and Practice, Vol. 25.
Sharma, P., Chrisman, J.J. and Chua, J.H. (2003), “Succession planning as planned behaviour: some empirical results”, Family Business Review, Vol. 16.
Sharma, P 2004, 'An overview of the field of family business studies: current status and directions for the future', Family Business Review, vol. XVII.
Stinchombe, A.L., 1965. Social structure and organizations. In: March, J.G. (Ed.), Handbook of Organizations.
Steier, L 2001, 'Next-generation entrepreneurs and succession: an exploratory study of modes and means of managing social capital', Family Business Review, vol. XIV.
Susanto, AB. 2005. World Class Family Business, Jakarta, Penerbit Quantum Bisnis & Manajemen.
Wang, Y, Watkins, D, Harris, N & Spicer, K 2004, 'The relationship between succession issues and business performance', International Journal of Entrepreneurial Behaviour & Research, vol. 10.
Ward, J.L. (2011), Keeping the Family Business Healthy – How to Plan for Continuing Growth, Profitability, and Family Leadership, Palgrave Macmillan, New York, NY.
Zahra, SA 2010, 'Family Enterprises A Force in Canadian Economy', Globe and Mail, Sept 8 2010.
Zahra, SA & Sharma, P 2004, 'Family business research: a strategic reflection', Family Business Review, vol. XVII, no. 4.
Astrachan, JH & Shanker, MC 2010, 'Family businesses' contribution to the US economy: a closer look', Family Busines Review, vol. 16, no. 3.
Beckhard, R & Dyer, WG 1983, 'Managing continuity in the family-owned business', Organizational Dynamics.
Blumentritt, T., Mathews, T. and Marchisio, G. (2013), “Game theory and family business succession: an introduction”, Family Business Review, Vol. 26 No. 1.
Barach, J. A., & Ganitsky, J. B. 1995. Successful Succession in Family Business. Family Business Review, 8(2).
Birley, S. (2002), “Attitudes of owner-managers’ children towards family and business issues”, Entrepreneurship Theory and Practice, Vol. 26 No. 3.
Casillas, J. & F. Acedo. 2007. Evolution of the Intellectual Structure of Family Business Literature: A Bibliometric Study of FBR, Family Business Review, 20 (2).
Chrisman, J., Chua, J., Kellermanns, F., Matherne, C. III and Debicki, B. (2008), Management journals as venues for publication of family business research, Entrepreneurship Theory and Practice, Vol. 32 No. 5.
Chrisman, J.J., Chua, J.H. and Steier, L.P. (2003), An introduction to theories of family business, Journal of Business Venturing, Vol. 18 No. 4.
Carlock, R.S. and Ward, J.L. (2001), Strategic Planning for the Family Business: Parallel Planning to Unify the Family and Business, Palgrave Macmillan, New York, NY.
Chrisman, JJ., JH. Chua, & P. Sharma. 2005. Trends and Developments of a Strategic Management Theory of the Family Firm, Entrepreneurship Theory and Practice, September 2005, pp.555-575.
Casillas, J. & F. Acedo. 2007. Evolution of the Intellectual Structure of Family Business Literature: A Bibliometric Study of FBR, Family Business Review, 20 (2).
Chirico, F & Nordqvist, M 2010, Dynamic capabilities and trans generational value creation in family firms: The role of organizational culture , International Small Business Journal, vol 28.
Churchill, NC & Hatten, KJ 1987, Non-market based transfers of wealth and power: a research framework for family business', American Journal of Small Business.
Cromie, S & O'Sullivan, S 1999, 'Women as managers in family firms', Women in Management Review, vol. 14.
Danco, LA. 1991. The Founder’s Restless Family, Agency Sales, July, 52 -55.
Daspit, J.J., Holt, D.T., Chrisman, J.J. and Long, R.G. (2015), “Examining family firm succession from a social exchange perspective: a multiphase, multistakeholder review”, Family Business Review, Vol. 29.
Fiegener, MK, Brown, BM, Prince, RA & File, KM 1994, 'A comparison of successor development in family and nonfamily busineses', Family Business Review, vol. 7.
Goffee, R 1996, 'Understanding family businesses: issues for further research', International Journal of Entrepreneurial Behaviour & Research, vol. 2.
Gersick, KE, Lansberg, I, Desjardins, M & Dunn, B 1999, 'Stages and transitions: managing change in the family business', Family Business Review, vol. Xii.
Haag, K 2005, 'Post-succession strategizing in the family business context'.
Habbershon, T.G., Williams, M. and MacMillan, I.C. (2003), “A unified systems perspective of family firm performance”, Journal of Business Venturing, Vol. 1.
Hamilton, E. (2011), “Entrepreneurial learning in the family business”, Journal of Small Business and Enterprise Development, Vol. 18.
Handler, W.C. (1994), “Succession in the family business: a review of the research”, Family Business Review, Vol. 7 No. 2.
Hofer, C.W., Charan, R., 1984. The transition to professional management: mission impossible? Am. J. Small Bus.9 (1).
Ibrahim A.B., Soufani, K. & Lam, J. 2001. A study of succession in a family firm. Family Business Review;14(3).
Kleiman, R & Peacock, E 1996-97, 'Family businesses as an economic phenomenon', Michigan Family Review, vol. 2.
Le Breton-Miller, I., Miller, D. and Steier, L.P. (2004), “Toward an integrative model of effective FOB succession”, Entrepreneurship Theory & Practice, Vol. 28.
Litz, R. 1995. The Family Business: Toward Definitional Clarity, Academy of Management Journal.
Litz, R. 1997. The Family Firm’s Exclusion From Business School Research: Explaining the Void; Addressing the Opportunity, Entrepreneurship Theory and Practice, Spring.
Malinen, P 2004, 'Problems in the transfer of business experienced by Finnish entrepreneurs', Journal of Small Business and Enterprise Development, vol. 11.
Miller, D., Steier, L., Le Breton-Miller, I., 2003. Lost in time: intergenerational succession, change and failure in the family business. J. Bus. Venturing 18.
Morris, MH, Allen, JA, Kuratko, DF & Brannon, D 2010, 'Experiencing family business creation: differences between founders, nonfamily managers, and founders and nonfamily firms', Entrepreneurship Theory and Practice, vol. 34.
Morris, M.H., Williams, R.O., Allen, J.A. and Avila, R.A. (1997), “Correlates of success in family business transitions”, Journal of Business Venturing, Vol. 12.
Pianna, BD, Vecchi, A & Cacia, C 2012, 'Towards a better understanding of family business groups and their key dimensions', Journal of Family Business Strategy, vol. 3.
Rubenson, G. and Gupta, A. (1996), “The initial succession: a contingency model of founder tenure”, Entrepreneurship: Theory and Practice, Vol. 21.
Santiago, AL 2000, 'Succession experiences in Philippine family businesses', Family Business Review, vol. XII.
Selznick, P., 1957. Leadership in Administration. Harper & Row, New York.
Scott, B.R., 1971. Stages of corporate development—Parts I and II. Harvard Case Services #9371-294 and 9-371295, Boston.
Schulze, WS & Gedojlovic, E 2010, 'Whither family business?', Journal of Management Studies, vol. 47.
Sharma, P, Chrisman, JJ & Chua, JH 1997, 'Strategic management of the family business: Past research and future challenges', Family Business Review, vol. 10, no. 1, pp. 1-35.
Lansberg, I 1988, 'The succession conspiracy', Family Business Review, vol. 1.
Sharma, P 2004, 'An overview of the field of family business studies: current status and directions for the future', Family Business Review, vol. XVII.
Sharma, P., Chrisman, J.J., Pablo, A.L. and Chua, J.H. (2001), “Determinants of initial satisfaction with the succession process in family firms: a conceptual model”, Entrepreneurship Theory and Practice, Vol. 25.
Sharma, P., Chrisman, J.J. and Chua, J.H. (2003), “Succession planning as planned behaviour: some empirical results”, Family Business Review, Vol. 16.
Sharma, P 2004, 'An overview of the field of family business studies: current status and directions for the future', Family Business Review, vol. XVII.
Stinchombe, A.L., 1965. Social structure and organizations. In: March, J.G. (Ed.), Handbook of Organizations.
Steier, L 2001, 'Next-generation entrepreneurs and succession: an exploratory study of modes and means of managing social capital', Family Business Review, vol. XIV.
Susanto, AB. 2005. World Class Family Business, Jakarta, Penerbit Quantum Bisnis & Manajemen.
Wang, Y, Watkins, D, Harris, N & Spicer, K 2004, 'The relationship between succession issues and business performance', International Journal of Entrepreneurial Behaviour & Research, vol. 10.
Ward, J.L. (2011), Keeping the Family Business Healthy – How to Plan for Continuing Growth, Profitability, and Family Leadership, Palgrave Macmillan, New York, NY.
Zahra, SA 2010, 'Family Enterprises A Force in Canadian Economy', Globe and Mail, Sept 8 2010.
Zahra, SA & Sharma, P 2004, 'Family business research: a strategic reflection', Family Business Review, vol. XVII, no. 4.
Published
2021-01-06
How to Cite
EFENDI, Bakhtiar; ZULMI, Alfian; RANGKUTY, Dewi Mahrani.
FAMILY BUSINESS RESILIENCE STRATEGY IN INDONESIA.
Jurnal Kajian Ekonomi dan Kebijakan Publik (JEpa), [S.l.], v. 6, n. 1, p. 367-374, jan. 2021.
ISSN 2527-2772. Available at: <https://jurnal.pancabudi.ac.id/index.php/jepa/article/view/1115>. Date accessed: 23 nov. 2024.
Section
Articles
