Factors Influencing Offsprings Commitment on Family Business Succession
Eko Suhartanto
Universitas Prasetiya Mulya
Abstract
The fact that only around 30% of family businesses are successfully passed to the offspring emphasizes the importance of research on succession. Regarding previous researches have demonstrated the positive relationship between intention and commitment, understanding the antecedents of offspring-s commitment on family business succession is crucial. This research aims to investigate the influence of offspring-s self-efficacy, subjective norms toward family business, parents- emotional support and the family business performance to the offspring-s commitment on family business succession. Surveying 354 Indonesian millennial who have family business background, this research statistically tested the hypotheses using structural equation modelling. When all independent variables are positively related to offspring-s commitment, the results demonstrate the dominance influence of parents- support. These findings emphasize the importance of parents- behavior toward the offspring daily life. Importantly, sharing experiences and excitement of doing family business jobs maybe more influencing than luring offspring with family business financial matters.
Keywords: Family Business, Succession Intention, Commitment toward Family Business, Parents- Emotional Support
Topic: Kewirausahaan Dan Inovasi Bisnis