ANALYSIS OF INNOVATION, PROACTIVE, AND RISK TAKING AS PRESENTATIONS OF ENTREPRENEURIAL ORIENTATION TOWARDS BUSINESS SUCCESS OF SECOND AND THIRD GENERATION FAMILY BUSINESS IN INDONESIA

Abstract

This study is aimed to analyze the effect of entrepreneurial orientation towards the business success of second and third generation family businesses in Indonesia. The entrepreneurship orientation covers three indicators namely innovation, proactive, and risk-taking abilitiy. This study used a cross-sectional design and conducted to 153 medium-scale family businesses that have run for 5 until 50 years and categorized as middle-scale business ran by the second and/or third generation family. Hypothesis testing was done using a multiple regression. The findings show that innovation and proactive have a significant and positive effect, while risk-taking ability has a negative and insignificant effect on the success of family businesses in Indonesia. This study offers an analysis of a unique entrepreneurial orientation, given the personality, family, ownership, and management system in family businesses in Indonesia are different from other countries. Besides, there are influences of technological advances that may interfere family businesses, particularly the family system, in Indonesia.