Succession in Family Restaurant Business: An Intergenerational Perspective

Abstract

This study aims at examining the succession process of family restaurants in Surabaya from the perspective of its former owners and successors. It was conducted to determine the succession planning of the former owners and successors to maintain their family business and to investigate the obstacles faced during the process. This study employs a qualitative method by studying two family restaurants in Surabaya where three informants from each restaurant were interviewed. It was found that in a Family Business Enterprise (FBE) type, formal succession planning was not necessary because the businesses were fully managed by the successors' family members. In addition, family values, hobbies, and passion were found to be fundamental aspects to be considered in the succession of family business planning.

The Impact of Intergenerational Succession Intention on Family Firm’s Innovation Strategy: Evidence from China

“…The average lifespan of a family business is barely 24 years, as per statistics. When the founders of family enterprises depart or retire unexpectedly, it is frequently the end of the business (Qi, 2021;Yang et al, 2020;Julita et al, 2021). According to Qi (2021), just 30% of family businesses in the United States can successfully complete down to the second generation, 13% of family businesses can successfully transfer down to the third generation, and therefore only 3% of family businesses can successfully pass down to the 4th generation (Karagouni, 2018).…”

“…Because of their lack of management and expertise, the younger generation of family company successors had many challenges in the business process when the older generation passed over power to the next generation of successors. The vast majority of the rst generation of business owners are hesitant to retire and unwilling to decentralize their control (Julita et al, 2021;Shi, 2021;Zou et al, 2020). They have complete control over their own destiny, and the next generation of successors is in relatively poor shape.…”

The Impact of Intergenerational Succession Intention on Family Firm’s Innovation Strategy: Evidence from China

“…The average lifespan of a family business is barely 24 years, as per statistics. When the founders of family enterprises depart or retire unexpectedly, it is frequently the end of the business (Qi, 2021;Yang et al, 2020;Julita et al, 2021). According to Qi (2021), just 30% of family businesses in the United States can successfully complete down to the second generation, 13% of family businesses can successfully transfer down to the third generation, and therefore only 3% of family businesses can successfully pass down to the 4th generation (Karagouni, 2018).…”

“…Because of their lack of management and expertise, the younger generation of family company successors had many challenges in the business process when the older generation passed over power to the next generation of successors. The vast majority of the first generation of business owners are hesitant to retire and unwilling to decentralize their control (Julita et al, 2021;Shi, 2021;Zou et al, 2020). They have complete control over their own destiny, and the next generation of successors is in relatively poor shape.…”