Generation Gap at Dharma Samudera Fishing Industries Tbk.

Abstract

Family businesses make up more than 60% of all listed companies in South-east Asia and its succession is considered as one of the company priorities. In Indonesia, about 30% of family-owned businesses survive into the second generation, 10% make it to the third generation, and only 2% make it to the fourth generation. The decline of family business continuity is affected by several factors and the main factor is succession management. Family business succession can be done by preparing and equipping the successors for a business transition and in this case, Dharma Samudera Fishing Industries Ltd has planned the succession. The purpose of this paper is to examine the differences between first and second generation mindset and decision making style in Dharma Samudera Fishing Industries Ltd. The paper sets out generation gap in Dharma Samudera Fishing Industries Ltd that can be an useful information for other family business enterprises.