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SUCCESSION PROCESS IN THE FAMILY BUSINESS: A CASE STUDY OF PEKALONGANESE BATIK CLOTH ENTERPRISES, INDONESIA
Corresponding Author(s) : Kusumantoro
Humanities & Social Sciences Reviews,
Vol. 8 No. 2 (2020): March
Abstract
Purpose: The main purpose of this study is to explain the role of parents in teaching business management to their children from an early age for the success of family business succession.
Methodology: It was a qualitative study and data were collected by observation, in-depth interviews, and documentation. The focus of this study was the succession process of the PekalonganBatik business analyzed from the entrepreneurial learning perspective. Interview questions focused on entrepreneurial learning and how parents teaching business management. Interviews conducted into 6 Informants. Each interview took between 35 – 45 minutes.
Main Finding: The results of this study showed that parents usually introduced business management to their children from an early age. They made their children involved in the business to know about the planning, producing and marketing of Batik cloths. The indicators of giving entrepreneurial learning to children are involving them in business activities; they learned to manage the business by doing those activities at their parents’business.
Implications/Applications: This study can be useful for another batik enterprises center to guidelines for succession.
Novelty/Originality: This research was to explore the parents to involve their children from an early age to help manage businesses in preparation for business succession.
Keywords
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- Bizri, R. (2016). Succession in The Family Business: Drivers and Pathways. International Journal of Entrepreneurial Behavior & Research, 22(1), 133–154. https://doi.org/10.1108/IJEBR-01-2015-0020 DOI: https://doi.org/10.1108/IJEBR-01-2015-0020
- Blumentritt, T. P. (2006). The Relationship Between Boards and Planning in Family Businesses. Family Business Review, 19(1), 65–72. https://doi.org/10.1111/j.1741-6248.2006.00062.x DOI: https://doi.org/10.1111/j.1741-6248.2006.00062.x
- Boyd, B., Royer, S., Pei, R., & Zhang, X. (2015). Knowledge transfer in family business successions: Implications of knowledge types and transaction atmospheres. Journal of Family Business Management, 5(1), 17–37. https://doi.org/10.1108/JFBM-05-2014-0009 DOI: https://doi.org/10.1108/JFBM-05-2014-0009
- Bozer, G., Levin, L., & Santora, J. C. (2017). Succession in the family business: multi-source perspectives. Journal of Small Business and Enterprise Development, 24(4), 753–774. https://doi.org/10.1108/JSBED-10-2016-0163 DOI: https://doi.org/10.1108/JSBED-10-2016-0163
- Braun, M., Latham, S., & Porschitz, E. (2016). All together now: strategy mapping for family businesses. Journal of Business Strategy, 37(1), 3–10. https://doi.org/10.1108/JBS-12-2014-0154 DOI: https://doi.org/10.1108/JBS-12-2014-0154
- Burch, G. F., Batchelor, J. H., Burch, J. J., & Heller, N. A. (2015). Rethinking family business education. Journal of Family Business Management, 5(2), 277–293. https://doi.org/10.1108/JFBM-02-2015-0007 DOI: https://doi.org/10.1108/JFBM-02-2015-0007
- Cater, J. J., Kidwell, R. E., & Camp, K. M. (2016). Successor Team Dynamics in Family Firms. Family Business Review, 29(3), 301–326. https://doi.org/10.1177/0894486516656255 DOI: https://doi.org/10.1177/0894486516656255
- Deng, X. (2015). Father-daughter succession in China: facilitators and challenges. Journal of Family Business Management, 5(1), 38–54. https://doi.org/10.1108/JFBM-05-2014-0011 DOI: https://doi.org/10.1108/JFBM-05-2014-0011
- Filser, M., Kraus, S., & Märk, S. (2013). Psychological Aspects Of Succession In Family Business Management. Management Research Review, 36(3), 256–277. https://doi.org/10.1108/01409171311306409 DOI: https://doi.org/10.1108/01409171311306409
- Fristia, V. F., & Navastara, A. M. (2014). Faktor Penyebab Belum Berkembangnya Industri Kecil Batik Desa Kenongo Kecamatan Tulangan-Sidoarjo. Jurnal Teknik Pomits, 3(2), C-190-C–195.
- Hamilton, E. (2011). Entrepreneurial Learning In Family Business A Situated Learning Perspective. Journal of Small Business and Enterprises Development, 18(1), 8–26. https://doi.org/10.1108/14626001111106406 DOI: https://doi.org/10.1108/14626001111106406
- Handler, W.C. (1994). Succession in the family business: A review of the research. Family Business Review, 7(2), 133–157. https://doi.org/10.1111/j.1741-6248.1994.00133.x DOI: https://doi.org/10.1111/j.1741-6248.1994.00133.x
- Handler, Wendy C. (1992). The Succession Experience of The Next Generation. Family Business Review, V(3), 283–307. https://doi.org/10.1111/j.1741-6248.1992.00283.x DOI: https://doi.org/10.1111/j.1741-6248.1992.00283.x
- Hayati, C. (2016). Kreativitas dan Inovasi Berkontribusi Mempertahankan Tradisi Batik Pekalongan [Gadjah Mada University]. https://ugm.ac.id/id/berita/11025-kreativitas-dan-inovasi-berkontribusi-mempertahankan-tradisi-batik-pekalongan
- Hnátek, M. (2012). Succession Planning and Generational Transition: The Greatest Challenges for Family-owned Businesses. Journal of Eastern Europe Research in Business & Economics, 2012, 1–11. https://doi.org/10.5171/2012.421949 DOI: https://doi.org/10.5171/2012.421949
- Jantunen, A. (2005). Knowledge-processing capabilities and innovative performance: An empirical study. European Journal of Innovation Management, 8(3), 336–349. https://doi.org/10.1108/14601060510610199 DOI: https://doi.org/10.1108/14601060510610199
- Kowalewski, S. J., Moretti, L., & McGee, D. (2011). Succession Planning: Evidence From “Best Companies In New YYork.†International Journal of Management and Marketing Research, 4(2), 99–108.
- Lopez-Fernandez, M. C., Serramo-Bedia, A. M., & Palma-Ruiz, M. (2016). What Hampers Innovation in Mexican Family Firms? Academia Revista Latinoamerica de Administration, 29(3), 255–278. https://doi.org/10.1108/ARLA-08-2015-0194 DOI: https://doi.org/10.1108/ARLA-08-2015-0194
- Lussier, R. N., & Sonfield, M. C. (2015). “Micro†versus “small†family businesses: A multinational analysis. Journal of Small Business and Enterprise Development, 22(3), 380–396. https://doi.org/10.1108/JSBED-02-2015-0029 DOI: https://doi.org/10.1108/JSBED-02-2015-0029
- Meier, O., & Schier, G. (2016). The Early Succession Stage of a Family Firm: Exploring the Role of Agency Rationales and Stewardship Attitudes. Family Business Review, 29(3), 256–277. https://doi.org/10.1177/0894486516646260 DOI: https://doi.org/10.1177/0894486516646260
- Oludare, S., & Olanipekun, J. (2016). Family Conflict and Sustainability of Family-Owned Businesses in Lagos and Ogun States, Nigeria. Journal of Business and Finance Management Research, 2(8), 89–96.
- Pham, T. T., Bell, R., & Newton, D. (2019). The father’s role in supporting the son’s business knowledge development process in Vietnamese family businesses. Journal of Entrepreneurship in Emerging Economies, 11(2), 258–276. https://doi.org/10.1108/JEEE-01-2018-0006 DOI: https://doi.org/10.1108/JEEE-01-2018-0006
- Remiasa, M., & Wijaya, S. A. (2014). Analisis Proses Suksesi Perusahaan Keluarga Pada PT Putrasean. Kinerja, 18(2), 141–156. https://doi.org/10.24002/kinerja.v18i2.526 DOI: https://doi.org/10.24002/kinerja.v18i2.526
- Revilla, A. J., Pérez-Luño, A., & Nieto, M. J. (2016). Does Family Involvement in Management Reduce the Risk of Business Failure? The Moderating Role of Entrepreneurial Orientation. Family Business Review, 29(4), 365–379. https://doi.org/10.1177/0894486516671075 DOI: https://doi.org/10.1177/0894486516671075
- Riady, N. (2017). Analisis Efektivitas Proses Suksesi Kepemimpinan Pada Perusahaan-Perusahaan Etnis Tionghoa. Agora, 5(3), 1–6.
- Sharma, P., Chrisman, J. J., & Chua, J. H. (1997). Strategic Management of The Family Business: Past Research and Future Challenges. Family Business Review, 10(1). https://doi.org/10.1111/j.1741-6248.1997.00001.x DOI: https://doi.org/10.1111/j.1741-6248.1997.00001.x
- Sharma, Pramodita, Chrisman, J. J., Pablo, A. L., & Chua, J. H. (2001). Determinants of Initial Satisfaction with the Succession Process in Family Firms: A Conceptual Model. Entrepreneurship: Theory & Practice, 514, 1117–1125. https://doi.org/10.1111/j.1540-6520.2010.00416.x DOI: https://doi.org/10.1111/j.1540-6520.2010.00416.x
- Smith, R. (2014). Authoring second-generation entrepreneur and family business stories. Journal of Family Business Management, 4(2), 149–170. https://doi.org/10.1108/JFBM-11-2011-0050 DOI: https://doi.org/10.1108/JFBM-11-2011-0050
- Spaan, N. R., Dekker, A. R. J., van der Velden, A. W., & de Groot, E. (2016). Informal And Formal Learning of General Practitioners. Journal of Workplace Learning, 28(6), 378–391. https://doi.org/10.1108/JWL-12-2015-0090 DOI: https://doi.org/10.1108/JWL-12-2015-0090
- Tata, J., & Prasad, S. (2010). Social capital and next-generation succession in the family firm. International Journal of Entrepreneurship and Small Business, 11(3), 322–337. https://doi.org/10.1504/IJESB.2010.035821 DOI: https://doi.org/10.1504/IJESB.2010.035821
References
Bizri, R. (2016). Succession in The Family Business: Drivers and Pathways. International Journal of Entrepreneurial Behavior & Research, 22(1), 133–154. https://doi.org/10.1108/IJEBR-01-2015-0020 DOI: https://doi.org/10.1108/IJEBR-01-2015-0020
Blumentritt, T. P. (2006). The Relationship Between Boards and Planning in Family Businesses. Family Business Review, 19(1), 65–72. https://doi.org/10.1111/j.1741-6248.2006.00062.x DOI: https://doi.org/10.1111/j.1741-6248.2006.00062.x
Boyd, B., Royer, S., Pei, R., & Zhang, X. (2015). Knowledge transfer in family business successions: Implications of knowledge types and transaction atmospheres. Journal of Family Business Management, 5(1), 17–37. https://doi.org/10.1108/JFBM-05-2014-0009 DOI: https://doi.org/10.1108/JFBM-05-2014-0009
Bozer, G., Levin, L., & Santora, J. C. (2017). Succession in the family business: multi-source perspectives. Journal of Small Business and Enterprise Development, 24(4), 753–774. https://doi.org/10.1108/JSBED-10-2016-0163 DOI: https://doi.org/10.1108/JSBED-10-2016-0163
Braun, M., Latham, S., & Porschitz, E. (2016). All together now: strategy mapping for family businesses. Journal of Business Strategy, 37(1), 3–10. https://doi.org/10.1108/JBS-12-2014-0154 DOI: https://doi.org/10.1108/JBS-12-2014-0154
Burch, G. F., Batchelor, J. H., Burch, J. J., & Heller, N. A. (2015). Rethinking family business education. Journal of Family Business Management, 5(2), 277–293. https://doi.org/10.1108/JFBM-02-2015-0007 DOI: https://doi.org/10.1108/JFBM-02-2015-0007
Cater, J. J., Kidwell, R. E., & Camp, K. M. (2016). Successor Team Dynamics in Family Firms. Family Business Review, 29(3), 301–326. https://doi.org/10.1177/0894486516656255 DOI: https://doi.org/10.1177/0894486516656255
Deng, X. (2015). Father-daughter succession in China: facilitators and challenges. Journal of Family Business Management, 5(1), 38–54. https://doi.org/10.1108/JFBM-05-2014-0011 DOI: https://doi.org/10.1108/JFBM-05-2014-0011
Filser, M., Kraus, S., & Märk, S. (2013). Psychological Aspects Of Succession In Family Business Management. Management Research Review, 36(3), 256–277. https://doi.org/10.1108/01409171311306409 DOI: https://doi.org/10.1108/01409171311306409
Fristia, V. F., & Navastara, A. M. (2014). Faktor Penyebab Belum Berkembangnya Industri Kecil Batik Desa Kenongo Kecamatan Tulangan-Sidoarjo. Jurnal Teknik Pomits, 3(2), C-190-C–195.
Hamilton, E. (2011). Entrepreneurial Learning In Family Business A Situated Learning Perspective. Journal of Small Business and Enterprises Development, 18(1), 8–26. https://doi.org/10.1108/14626001111106406 DOI: https://doi.org/10.1108/14626001111106406
Handler, W.C. (1994). Succession in the family business: A review of the research. Family Business Review, 7(2), 133–157. https://doi.org/10.1111/j.1741-6248.1994.00133.x DOI: https://doi.org/10.1111/j.1741-6248.1994.00133.x
Handler, Wendy C. (1992). The Succession Experience of The Next Generation. Family Business Review, V(3), 283–307. https://doi.org/10.1111/j.1741-6248.1992.00283.x DOI: https://doi.org/10.1111/j.1741-6248.1992.00283.x
Hayati, C. (2016). Kreativitas dan Inovasi Berkontribusi Mempertahankan Tradisi Batik Pekalongan [Gadjah Mada University]. https://ugm.ac.id/id/berita/11025-kreativitas-dan-inovasi-berkontribusi-mempertahankan-tradisi-batik-pekalongan
Hnátek, M. (2012). Succession Planning and Generational Transition: The Greatest Challenges for Family-owned Businesses. Journal of Eastern Europe Research in Business & Economics, 2012, 1–11. https://doi.org/10.5171/2012.421949 DOI: https://doi.org/10.5171/2012.421949
Jantunen, A. (2005). Knowledge-processing capabilities and innovative performance: An empirical study. European Journal of Innovation Management, 8(3), 336–349. https://doi.org/10.1108/14601060510610199 DOI: https://doi.org/10.1108/14601060510610199
Kowalewski, S. J., Moretti, L., & McGee, D. (2011). Succession Planning: Evidence From “Best Companies In New YYork.†International Journal of Management and Marketing Research, 4(2), 99–108.
Lopez-Fernandez, M. C., Serramo-Bedia, A. M., & Palma-Ruiz, M. (2016). What Hampers Innovation in Mexican Family Firms? Academia Revista Latinoamerica de Administration, 29(3), 255–278. https://doi.org/10.1108/ARLA-08-2015-0194 DOI: https://doi.org/10.1108/ARLA-08-2015-0194
Lussier, R. N., & Sonfield, M. C. (2015). “Micro†versus “small†family businesses: A multinational analysis. Journal of Small Business and Enterprise Development, 22(3), 380–396. https://doi.org/10.1108/JSBED-02-2015-0029 DOI: https://doi.org/10.1108/JSBED-02-2015-0029
Meier, O., & Schier, G. (2016). The Early Succession Stage of a Family Firm: Exploring the Role of Agency Rationales and Stewardship Attitudes. Family Business Review, 29(3), 256–277. https://doi.org/10.1177/0894486516646260 DOI: https://doi.org/10.1177/0894486516646260
Oludare, S., & Olanipekun, J. (2016). Family Conflict and Sustainability of Family-Owned Businesses in Lagos and Ogun States, Nigeria. Journal of Business and Finance Management Research, 2(8), 89–96.
Pham, T. T., Bell, R., & Newton, D. (2019). The father’s role in supporting the son’s business knowledge development process in Vietnamese family businesses. Journal of Entrepreneurship in Emerging Economies, 11(2), 258–276. https://doi.org/10.1108/JEEE-01-2018-0006 DOI: https://doi.org/10.1108/JEEE-01-2018-0006
Remiasa, M., & Wijaya, S. A. (2014). Analisis Proses Suksesi Perusahaan Keluarga Pada PT Putrasean. Kinerja, 18(2), 141–156. https://doi.org/10.24002/kinerja.v18i2.526 DOI: https://doi.org/10.24002/kinerja.v18i2.526
Revilla, A. J., Pérez-Luño, A., & Nieto, M. J. (2016). Does Family Involvement in Management Reduce the Risk of Business Failure? The Moderating Role of Entrepreneurial Orientation. Family Business Review, 29(4), 365–379. https://doi.org/10.1177/0894486516671075 DOI: https://doi.org/10.1177/0894486516671075
Riady, N. (2017). Analisis Efektivitas Proses Suksesi Kepemimpinan Pada Perusahaan-Perusahaan Etnis Tionghoa. Agora, 5(3), 1–6.
Sharma, P., Chrisman, J. J., & Chua, J. H. (1997). Strategic Management of The Family Business: Past Research and Future Challenges. Family Business Review, 10(1). https://doi.org/10.1111/j.1741-6248.1997.00001.x DOI: https://doi.org/10.1111/j.1741-6248.1997.00001.x
Sharma, Pramodita, Chrisman, J. J., Pablo, A. L., & Chua, J. H. (2001). Determinants of Initial Satisfaction with the Succession Process in Family Firms: A Conceptual Model. Entrepreneurship: Theory & Practice, 514, 1117–1125. https://doi.org/10.1111/j.1540-6520.2010.00416.x DOI: https://doi.org/10.1111/j.1540-6520.2010.00416.x
Smith, R. (2014). Authoring second-generation entrepreneur and family business stories. Journal of Family Business Management, 4(2), 149–170. https://doi.org/10.1108/JFBM-11-2011-0050 DOI: https://doi.org/10.1108/JFBM-11-2011-0050
Spaan, N. R., Dekker, A. R. J., van der Velden, A. W., & de Groot, E. (2016). Informal And Formal Learning of General Practitioners. Journal of Workplace Learning, 28(6), 378–391. https://doi.org/10.1108/JWL-12-2015-0090 DOI: https://doi.org/10.1108/JWL-12-2015-0090
Tata, J., & Prasad, S. (2010). Social capital and next-generation succession in the family firm. International Journal of Entrepreneurship and Small Business, 11(3), 322–337. https://doi.org/10.1504/IJESB.2010.035821 DOI: https://doi.org/10.1504/IJESB.2010.035821