Author(s): Susilo Toto Raharjo, Mirwan Surya Perdhana, Amie Kusumawardhani, Suharnomo
This research investigates the process of leadership succession in family companies in Indonesia. A better understanding of the challenges faced by family businesses is needed when trying to carry out leadership succession from one generation to the next. In Indonesia, the number of family businesses is very large and contributes significantly to the economy. Considering the many cases of business bankruptcy due to incorrect selection of business successors, it is necessary to examine factors that make a successful business transition to achieve good performance. This research was conducted using the case study method by conducting in-depth interviews of two generations of top management of two family companies in Indonesia. The interview asked interviewees to explain their experiences with family businesses and their experiences as they go through a business transition. Implication for managerial practice is discussed.