The Challenges of Family Business Succession Process: a Case Study of Two Major Batik Peranakan Entrepreneurs in Pekalongan and Solo

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>

Succession Process for Sustainability of Family Dairy Farming

“…Many rural agribusiness owners worry about the future of their family farms because of the importance of the succession process (Lange, Piorr, Siebert, & Zasada, 2013). Blood and emotional ties affect the family business succession (Kristanti & Nuradhi, 2021). The succession process is reflected in the successor's involvement or youth participation in the family business (Kristanti & Nuradhi, 2021;Saan, Enu-Kwesi, & Nyewie, 2018).…”

“…Blood and emotional ties affect the family business succession (Kristanti & Nuradhi, 2021). The succession process is reflected in the successor's involvement or youth participation in the family business (Kristanti & Nuradhi, 2021;Saan, Enu-Kwesi, & Nyewie, 2018). Youth participation refers to active engagement representing their presence in the business, competence in the work, and decisions that affect their lives (Geza et al, 2021).…”

“…As Kristanti and Nuradhi (2021) and Saan et al (2018) asserted, the successors' involvement in the family business, measured by working hours, reflects the succession process. Table 5 lists six variables that significantly influencing the successors' participation, encompassing the the number of dairy cattle (X1), family size (X3), age (X4), farm size (X6), gender (X8), and employment status (X9).…”