Sustainability of Family Business: Millennials Intention to Stay in the Family Business as the Result of Stewardship Climate, Mediated by Successor’s Trust and Socioemotional Wealth

Abstract

This research studies the influence of stewardship on the intention to stay in the family business. Successor’s trust and socioemotional wealth are also studied as mediator. The population in this research is Millennials that work in a family business and have prepared as a successor. Samples were taken purposively from family business members of KADIN East Java (Chamber of Commerce). The sample collected was 221. Data were analyzed with Andrew Hayes PROCESS model 4. The result shows that stewardship has a significant positive effect on the successor’s trust, socioemotional wealth, and intention to stay. Successor’s trust and socioemotional wealth have a significant positive effect on the intention to stay. Successor’s trust and socioemotional wealth have a mediating effect on the relationship between stewardship and intention to stay. The findings contribute to the succession strategy in the family business, especially to make Millennials’ successors willing to stay in the family business. The suggestion for future research is to test the effect on different cohorts as Generation Z or different family cultures.

Investigating individual intention to make money: can motivation of wealth be a socio-economic leverage?

“…However, there exists an insignificant moderating role of motivation of wealth on other threepair relationships: explicit perception of the rich and intention to make money, implicit perception and intention to make money, and individual control and intention to make money. These findings are in line with the previous studies indicating the millennial intention to make money in their family business and stating that motivation of stewardship, social-emotional wealth, and intention to make money have significant correlations (Riznika & Stefanus Kaihatu, 2021). These findings may be somewhat different from the research of Su and Chen (2018), Gültekin (2018), andFischer andKarl (2022), which suggest the role of motivation of wealth in pushing individual intention to make money.…”

“…Motivation to buy luxury goods has pushed individual wealth expectations into their future earnings. Riznika and Stefanus Kaihatu (2021) examine the millennial intention to make money in family businesses. It is found that motivation of stewardship, social-emotional wealth, and intention to make money have significant correlations.…”