The Challenges Of Family Business Succession Process: A Case Study Of Two Major Batik Peranakan Entrepreneurs In Pekalongan And Solo

Abstract

Family business has many challenges to sustain for generations. Two legendary peranakan batik entrepreneurial families halted their businesses at the third generation and this research looks for the causes of this failure. The research method used is qualitative, by interviewing main resource persons who are the third generation of legendary batik peranakan and then triangulating with other sources and previous research. The conclusion drawn is that there was no mature succession planning from the predecessor to the successor. Succession is not easy, let alone in creative industry like high quality Batik Peranakan that most of the process is tacit knowledge. Meanwhile, the difference in motivation and commitment of the next generation of these two family businesses do not seem to cause a difference in the final journey of Batik Oey Soe Tjoen and Batik Tiga Negeri. This study contributes to family business succession process especially those who run business in creative industries. Factors beyond succession planning and commitment of future generations can be the subjects to further research studies.