FACTORS AFFECTING SUCCESS OF FAMILY BUSINES SUCCESSION: THE EDUCATION LEVEL OF FAMILY MEMBER AND INDUSTRY SCALE IMPACT SUCCESS IN INDONESIA

Abstract

Family businesses play an important role in the global economy and succession is always a
significant challenge for these businesses. This study aims to explore the factors that influence
the success of family business succession in the Indonesian context, focusing on family
members' educational level and industry size. Firstly, the research reveals a close relationship
between education level and the success of family business succession. Family members with a
strong educational background tend to adapt better to the modern business environment,
employ best practices, and respond effectively to market changes. They may possess stronger
leadership and management skills, contributing to the steady growth of family businesses.
Secondly, industry scale is identified as a key factor influencing the success of family business
succession. Industries of different scales present unique challenges and opportunities for family
business succession. In larger industries, family enterprises may require more specialized
knowledge and resources to successfully pass on the business, while in smaller industries, they
may find it easier to maintain traditional operating practices. This study will further explore
these factors' impacts through in-depth analysis of case studies of Indonesian family businesses,
providing practical recommendations for optimizing the success of family business succession.
Ultimately, these findings are expected to assist Indonesian family businesses in better
addressing succession challenges and achieving sustainable business growth.