THE DETERMINANTS OF A SUCCESSFUL FAMILY BUSINESS SUCCESSION IN INDONESIA: A

MULTIPLE CASE STUDY

ABSTRACT

Family businesses plays an important role in both developed and developing countries. They

employ a majority of workforce establishing the newest jobs and generating a significant

proportion of the gross domestic product. About 96% of the 165,000 companies established in

Indonesia are family businesses. However, the survival rate of passing through the stage of

second generations in family business is very low. This research has been conducted to analyse

the determinants of successful family business successions. Qualitative research method was

used to study four families. The conclusion from the study was that the determinants of

successful family business succession are managing a complex relationship of successors and

incumbent related factors, family context, business context, and having a structured agreement

system.