Open AccessThe Transition of Family Business Leadership:
Author(s) -
Dahliana Kamener,
Norhidayah Mohd Rashid,
Daniati Puttri
Publication year - 2018
Publication title -
asia proceedings of social sciences
Language(s) - English
Resource type - Journals
eISSN - 2663-6638
pISSN - 2663-662X
DOI - 10.31580/apss.v2i3.305
Subject(s) - successor cardinal , ecological succession , family business , succession planning , business , sustainability , control (management) , affect (linguistics) , management , marketing , economics , sociology , mathematics , mathematical analysis , ecology , communication , biology
The issue of succession is very important because the successful succession leads to the sustainability of a family businesses (Sharma & Dave, 2013). Generally, the family businesses are difficult to flourish and even many have bankrupt. Some family businesses are bound on the first generation and some have collapsed in the second generation. Literature shows that just 30 percent of family businesses can be passed along to the second generation, and 70 percent fail after first generation step down because there are no preparation for succession and inability of the next generation to control and run the company (Aronoff, (2004). The study purposed to examine six hypotheses and the result showed the succession planning, non-family leadership, and decision making authority unsignificantly affect on the succession of the family business. Nevertheless, founder's influence, successor and strategic planning variable affect significantly to the success of family business succession at Padang city, West Sumatera.