Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


Characteristics of family business succession in Batik industry

Author(s): Magnadi, R. H., Perdhana, M. S., Raharjo, S. T., & Abdurokhim

The third-generation curse often reflects how difficult it is for a family business to appoint successor that could ensure the continuity of the company. However, it seems that not all industry would surrender to the third-generation curse. Utilizing the case of Batik Industry in Trusmi Village, Indonesia; this paper studies the succession pattern of the two prominent Batik entrepreneurs who have managed to survive from the third-generation curse: Batik Katura (currently managed by the eighth generation, and Batik Ninik Ichsan (currently managed by the fifth generation). A qualitative case study approach was utilized using 7 categories related to the business succession. The results demonstrated that the succession pattern in Batik Industry tends to be hereditary, where parents will bequeath their business to the children through the establishment of the new business for each child. The hereditary succession pattern in Batik industry, with its own characteristics, could be considered by other family business in other industry since it is made with a strong contemplation of the local culture and wisdom. Nevertheless, implications based on theory and practices were discussed

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