Founders’ Values Contributing to the Intergenerational Succession of Large Family Businesses

Abstract

Studi ini menganalisis nilai-nilai pendiri yang berkontribusi pada suksesi antargenerasi dari bisnis keluarga besar yang dianggap konglomerat di Indonesia. Akses informan dalam usaha keluarga besar ini masih langka, terutama karena sifat usaha keluarga yang tertutup. Dengan demikian, meskipun beberapa peneliti telah membahas hubungan antara nilai dan umur panjang, studi yang menyinggung bisnis keluarga besar di ekonomi yang sedang berkembang ini masih minim. Selain itu, penting untuk mengetahui bagaimana nilai-nilai para pendiri mempengaruhi umur panjang bisnis keluarga besar mereka, mengingat dampak kelompok konglomerat tersebut terhadap perekonomian Indonesia. Para peneliti menggunakan Interpretative Phenomenological Analysis (IPA) dengan mewawancarai 15 informan yang terdiri dari penerus dan profesional non-keluarga kunci dari 5 kelompok konglomerat. Pengamatan dan catatan lapangan juga dicatat untuk melakukan triangulasi dengan data wawancara. Penelitian ini mendorong wawasan empiris baru ke dalam nilai-nilai para pendiri dalam mengubah manajemen bisnis keluarga dan umur panjang mereka. Temuan tersebut mengungkapkan bahwa nilai-nilai integritas dan kewirausahaan pendiri adalah yang teratas, diikuti oleh kesopanan, kepercayaan, tujuan yang lebih tinggi, dan kepercayaan kepada Tuhan. Nilai-nilai yang ditimbulkan ini menopang umur panjang bisnis keluarga besar hingga generasi berikutnya dan membuka jalan potensial untuk penelitian di masa depan. This study analyzed the founders’ values that contribute to the intergenerational succession of large family businesses that are considered conglomerates in Indonesia. The access to the informants in these large family businesses is scarce, especially due to the reserved nature of the family business. Thus, even though several researchers have addressed the relationship between values and longevity, the studies that allude to large family businesses in this emerging economy is still scant. Besides, it is vital to investigate how the values of the founders affect the longevity of their large family businesses, considering the impact that these conglomerate groups have on Indonesia’s economy. The researchers employed the Interpretative Phenomenological Analysis (IPA) by interviewing 15 informants composing of successors and key non-family professionals from 5 conglomerate groups. Observations and field notes were also taken note of to triangulate with the interview data. This research induced new empirical insights into the founders’ values in transforming their family business management and longevity. The findings revealed that the founder's values of integrity and entrepreneurship are among the top, followed by modesty, trustworthiness, a higher purpose, and trust in God. These elicited values underpin the longevity of large family businesses into the next generations and enkindle potential avenues for future research.

Valuation Determinants of Family Real Estate Business: Empirical Evidence in the Indonesian Stock Exchange

“…Company Law governs the role of the board of directors as the authority in charge of the company's operations (Arifai et al, 2018). In addition, when the family plan a succession to a younger generation, the involvement in BOD as early education in the family business as fostering concern for others, entrepreneurship, integrity, and courtesy so that the successor of the company can run the company well (Cahyadi et al, 2021;Ng et al, 2021). The board of directors can carry out the decisions because of their relationship with the company's owner.…”

“…We are convinced that family-owned businesses are the most prevalent business structure worldwide and in Indonesia. These corporations dominate global equity markets, and their presence is even greater among privately-held businesses (Cahyadi et al, 2021;Carbone et al, 2022;Ng et al, 2021). Family business scholars have invested a substantial amount of time investigating family business behaviors, strategies, and performance (Cahyadi, 2022).…”

Analysis of the Causes of Company Performance in Family Companies in the Manufacturing Industry

“…Of course, the road to surviving in business is not easy, so with the existence of a family business, efforts have been made to improve governance, leadership transition, and even sustainability for the next generation. The need for early education carried out in the family such as fostering concern for others, entrepreneurship, integrity, and courtesy so that the successor of the company can run the company well [3].…”