Analysis Factors Professionalism in Family Business

Abstract

Research abounds on the nuances of family business. Our study contributes to the family business literature by showing how professionalism can influence family business. Professionalism refers to the extent that owners fulfill their assigned roles and commitments in a relationship between each other and to the firm. This article is a quantitative study with an exploratory factor analysis. We analyzed factors professionalism approaches used by 49 family businesses, we explore professionalism factors using insights from heritage owner family business and be confirmation with Confirmatory Factor Analysis. There were four indicators professionalism factors in Family Business which are lines of authority, respect for the hierarchy, control management, and future investment. The results of this research indicated that respect for the hierarchy has the highest factor value from professionalism is 0.846.