Key Success Factors in Succession: Family Business in Global Value Chain
Nyayu Lathifah Tirdasari, Wawan Dhewanto, Raden Isma Anggraini

School of Business IPB University (Bogor Agricultural University), Jl. Raya Pajajaran, Bogor, Indonesia, 16128

School of Business and Management ITB, Jl. Ganesha No. 10, Bandung, Indonesia 40132

Abstract

Despite the importance of business succession in a family business, the study with regards its key success factors is often neglected. Moreover, the key success factor before and after entering the global value chain might be different for a family business. The key success factors in succession with regards to the family business in Indonesia were explored to provide lessons that ease the succession process to be more effective in order to participate in a global value chain. This study employed a qualitative study approach with a structured interview to three family businesses involved in the food industry in Bogor, Indonesia. The results clustered key success of business succession into three factors, namely organization, successor, and predecessor. Each key success factor of business succession was associated with different attributes. The attributes of the organization were existence, development, family unity, and sustainability. The attributes of a successor were the commitment, leadership, communication skills, and persistence manner as well. The attributes of a predecessor were commitment, mentoring, persistence, and communication skill. This study found that the important attributes of key success factors were the commitment, leadership and mentoring process. This implies the successor was the main key success factor in business succession for a family business to compete in the global value chain.

Keywords: family business, succession, key success factor, business continuance, global value chain

Topic: Human Capital Development Strategies

Link: https://ifory.id/abstract-plain/h4LmuzMKerVY

Web Format | Corresponding Author (Nyayu Lathifah Tirdasari)