SUCCESS KEYS TO CREATING THIRDGENERATION ACHIEVEMENT: A CASE STUDY IN FAMILY BUSINESS IN INDONESIA
Istiatin and Luhgiatno
Universitas Islam Batik Surakarta, Surakarta, Indonesia
STIE Pelita Nusantara, Semarang, Indonesia
This research aims at finding the characteristics of third-generation successors which can create some achievement by applying transformations, be it stucture, technology or people transformation. This research uses qualitative research design: Such a type of research produces and processes descriptive data. The data in this research are collected using in-depth interview with informants. The research results indicate that currently PT Danliris has performed succession by determining the characteristics of good successors, family transformation and harmonization. For this time being, PT Danliris is led by their third-generation leader, who successfully attain some achievement.
Key words: Family company, characteristics of successor, transformation, successor achievement.
Cite this Article: Istiatin and Luhgiatno, Success Keys to Creating Third-Generation Achievement: A Case Study in Family Business in Indonesia. International Journal of Civil Engineering and Technology, 8(11), 2017, pp. 803810.
Family businesses contribute significantly to a country’s economic development and growth . Most large companies developed throughout the world currently always begin as family businesses. Family businesses are a company where its leadership and ownership are concentrated on a family . To run a family business is extremely hard. What underlies the more complex issues in a family company than in other organization is that in a family company there are two different things which are equally important for the company’s survival, i.e. business and family interests . In addition to the issue of harmony between business and family goals, several issues specifically coherent to family companies, they are conflict of values, succession, organizational structure, competence, compensation and distribution of revenues. Samara and Arenas  explain that fairness has been an important issue in a family business. Family companies should set themselves free from various problems and focus on improving and maintaining their performance and existence, from one generation to another with longer age