BUILDING TRUST AND FAMILY VALUE TRANSFER IN THE PROCESS OF SUCCESSION PREPARATION OF FAMILY BUSINESS

Abstract

Succession in the family business is a complex and challenging process that requires serious efforts from all parties involved. Family value transferring and trust building included in the family system have a significant influence on a fruitful succession in family companies. This research explains that family value and trust building have an important role in determining the success of the succession process in family companies. This research aimed to describe the stages of building a level of trust between senior generation and junior generation in succession planning of family business and describing the process value transfer in a succession of the family business. This is qualitative descriptive in nature, using purposive sampling, where data are obtained from conducting semi-structured interviews with five family companies and one expert in family business. The findings described the model of succession preparation in family business and the stages of establishing trust between senior and junior generation in the family business succession process, as well as transferring family values within the process of family business succession preparation. There are several new variables which emerged from this research, namely Moral and Religious, Communication, and Education.