The Role of Personality System Succession Pattern in Family Business in Indonesia

Abstract

The fact shows that 30 percent of family business can survive in second generation of family ownership, and only 15 percent survive in third generation. This indicates that it is important to study important factors that is the key of successful transition in family business. The aim of this study is to analyze the existence of personality system succession pattern that includes successor qualification, entrepreneurial orientation, willingness to take over responsibility and personality traits, management and leadership is influential in the effort to sustain success in family business in Indonesia. There are 52 second generation family businesses used as sample in this study, using Partial Least Square analysis it was discovered that personality system succession pattern includes: successor qualification, entrepreneurial orientation, willingness to take over responsibility and personality traits, management and leadership skills has a positive and significant impact, in the effort to sustain success in family business ( Study on Medium Scale Second Generation Family Business in Indonesia)