Proposed Succession Planning for Next-Generation Family Business: A Study of PT X
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 01
Abstract
This extensive study, “Proposed Succession Planning for Next-Generation Family Business: A Study of PT X,” examines the crucial process of succession planning in family-owned businesses. Given their importance to the global economy, this study examines the complex process of passing leadership and management from one generation to the next in family businesses. The report underlines the importance of succession planning in ensuring family businesses survive the following generation. The qualitative study uses semi-structured interviews and extensive secondary data analysis. This method allows a thorough analysis of family business owners’ perspectives, revealing succession planning’s complexities. The sample for this research consists of 19 respondents taken by using purposive sampling method. This study identified many important family business succession challenges. Generation gap, communication challenges, and credibility issues affect succession planning. The generation gap exacerbates differences in viewpoints and business methods between generations, making it difficult to align business goals and plans. Management and generational differences can aggravate communication gaps, leading to family business misunderstandings and conflicts. The lack of trust and respect between the founder and the successor creates a credibility gap that hinders leadership transition and economic ties. The article emphasizes the importance of conducting a thorough succession planning approach to close these gaps. This emphasizes the importance of addressing these issues for a smooth leadership transfer and the family business’s continued profitability and growth. To sustain family values and lead the organization to success, successors must be properly prepared. The paper highlights four important phases in succession process: process initiation, successor education, selection, and intergenerational transfer. Planning and execution are essential at every stage. Proactive planning is emphasized in the process initiation stage of retirement and transition planning. Successor education gives successors the knowledge and abilities they need to manage. To ensure the best fit with the business’s future goals, successor selection requires careful consideration of several factors. Final phase of intergenerational transfer focuses on management and ownership transfer. This stage requires careful preparation to maintain the business’s core beliefs and strategy. The survey found that family business succession planning is a continuous process. Evaluation must include family dynamics, company goals, and possible successors’ qualities. A well-organized and rigorous succession planning framework is essential for handling these complexities, ensuring the company’s long-term profitability, and preserving family unity. Overall, this research improves family business succession planning understanding. This resource offers unique viewpoints and effective ideas for family businesses in developing markets like Indonesia. This study underlines the need for a thorough succession planning strategy that accounts for family-owned business challenges and benefits. Thus, it is valuable for business owners, successors, and students studying family business succession dynamics.
Authors and Affiliations
Zefanya Valencia, Andika Putra Pratama,
Keywords
Related Articles
- EP ID EP727891
- DOI 10.47191/ijcsrr/V7-i1-49
- Views 15
- Downloads 0
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