Cultural embeddedness of family businesses succession planning: a comparative study of Poland and Indonesia
-
Author(s)Anna BąkiewiczLink to ORCID Index: https://orcid.org/0000-0002-7991-3931
-
DOIhttp://dx.doi.org/10.21511/ppm.18(3).2020.27
-
Article InfoVolume 18 2020, Issue #3, pp. 328-337
- Cited by
- 1008 Views
-
459 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The research investigates the bases of succession planning in family businesses (FB), especially the cultural background of the phenomenon. The significance of the issue under study comes from the importance of family business in every economy and the delicate matter of succession as an important business development element. The research is based on the observation that the succession determinants are still outside the mainstream of the research. In this study, it is hypothesized that succession planning is influenced by cultural background. The investigation is done by performing a comparative analysis of family businesses’ potential successors from the culturally distant countries: Poland and Indonesia. An empirical survey-based method is applied to investigate the younger generation’s involvement in preparations for the transfer of the family business. The differences in the approach to the younger generation’s succession identified in the survey are not related to such factors as age, size, or succession experience of the business. Instead, there are premises to say that the differences come from the family and business culture based on national specificity. First-hand support for the cultural embeddedness of FB succession planning was found. Furthermore, the results also reaffirm the doubts concerning the importance of post-communist countries’ economic transformation for succession planning. The empirical study confirms the expectations that the specificity of cultural background in Poland could be especially harmful to succession planning in the family business.
- Keywords
-
JEL Classification (Paper profile tab)M14, L26, M10, J24
-
References40
-
Tables5
-
Figures0
-
- Table 1. Poland and Indonesia – cultural distance
- Table 2. The family business in Indonesia and Poland, the survey sample
- Table 3. Succession planning in FB, survey in Indonesia and Poland
- Table 4. Preparations for succession, survey in Indonesia and Poland
- Table 5. Students’ involvement in succession planning, Indonesia and Poland survey
-
- Afghan, N., & Wiqar, T. (2007). Succession in Family Businesses of Pakistan: Kinship Culture and Islamic Inheritance Law (CMER Working Paper, 07). Lahore University of Management Science.
- Agarwal, R., Kumar, A., & D’Souza, K. (2016). Issues in Career Choices of Successors in Family Businesses: Perspective from Literature Review. Journal of Applied Management and Investments, 5(1), 1-19.
- Bąkiewicz, A. (2020). Cultural embeddedness of FB succession. The perspective of next generation. Journal of Contemporary Management (in print).
- Bhalla, V., Orglmeister, Ch., & Tong, D. (2016). What Makes Family Business in Emerging Markets so Different? Boston Consulting Group.
- Bozer, G., Levin, L., & Santora, J. C. (2017). Succession in family business: multi-source perspectives. Journal of Small Business and Enterprise Development, 24(4), 753-774.
- Brockhaus, R. H. (2004). Family business succession: Suggestions for future research. Family Business Review, 17, 165-177.
- Brodbeck, F. C., Chhokar, J. S., & House, R. J. (Eds.) (2007). Culture and Leadership across the World. In The GLOBE Book of in-Depth Studies of 25 Societies. Lawrence Erlbaum Associates, New York.
- Cadieux, L. (2007). Succession in small and medium-sized family businesses: Toward a typology of predecessor roles during and after instatement of the successor. Family Business Review, 20(2), 95-109.
- Chau, T. T. (1991). Approaches to Succession in East Asia Business Organizations. Family Business Review, 4(2), 161-179.
- De Massis, A., Chua, J. H., & Chrisman, J. J. (2008). Factors pre venting intra-family succession. Family Business Review, 21(2), 183-199.
- De Massis, A., Sieger, P., Chua, J. H., & Vismara, S. (2016). Incumbents’ attitude toward intra family succession: An investigation of its antecedents. Family Business Review, 29(3), 278-300.
- Dekker, J., Helsen, Z., Lybaert, N., Steijvers, T., & Orens, R. (2017). Management Control Systems in Family Firms: a Review of the Literature and Directions for the Future. Journal of Economic Surveys, 31(2), 410-435.
- Déniz Déniz, M. C., & Cabrera Suárez, M. K. (2005). Corporate Social Responsibility and Family Business in Spain. Journal of Business Ethics, 56(1), 27-41.
- Dyck, B., Mauws, M., Starke, F. A., & Mischke, G. A. (2002). Passing the baton – the importance of sequence, timing, technique and communication in executive succession. Journal of Business Venturing, 17(2), 143-162.
- Evert, R. E., Martin, J. A., McLeod, M. S., & Payne, G. T. (2015). Empirics in family business research: Progress, challenges, and the path ahead. Family Business Review, 29(1), 17-43.
- Georgiou, T., & Vrontis, D. (2013). Wine sector development: a conceptual framework toward succession effectiveness in family wineries. Journal of Transnational Management, 18(4), 246-272.
- Globerman, S., Peng, M. W., & Shapiro, D. M. (2011). Corporate governance and Asian companies. Asia Pacific Journal of Management, 28(1), 1-14.
- Handler, W. (1992). The Succession Experience of the Next Generation. Family Business Review, 5(3), 283-307.
- Handler, W. C. (1994). Succession in family business: A review of the research. Family Business Review, 7(2), 133-157.
- Hewitt, M., van Rensburg, L. J., & Ukpere, W. I. (2012). A Measuring Instrument to Predict Family Succession Commitment to Family Business. African Journal of Business Management, 6(49), 11865-11879.
- Hofstede Insights. (2020). Country comparison: Indonesia and Poland.
- Hofstede, G. (1980). Culture’s Consequences: International Differences in Work-Related Values. London: Sage Publications, Inc.
- House, R. J., Javidan, M., Hanges, P. J., & Dorfman, P. (2002). Understanding Cultures and Implicit Leadership Theories Across the Globe: An Introduction to Project GLOBE. Journal of World Business, 37, 3-10.
- Huang, T-Ch. (1999). Who Shall Follow? Factors affecting the adoption of succession plans in Taiwan. Long Range Planning, 32(6), 609-616.
- Inglehart, R. (1990). Culture Shift in Advanced Industrial Society. Princeton University Press.
- Le Breton-Miller, I., Miller, D., & Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28, 305-328.
- Mierzal, L., Ritz, J., Torres, G. L. F., & Bergfeld, M-M. (2017). Succession Planning in Different Cultures: A Comparative Analysis of Family Firms in Mexico and Germany (Munich Business School WP, 2017-04).
- Morck, R., & Yeung, B. (2003). Agency problems in large family business groups. Entrepreneurship Theory and Practice, 27(4), 367-382.
- Nordqvist, M., Wennberg, K., Bau, M., & Hellerstedt, K. (2013). An entrepreneurial process perspective on succession in family firms. Small Business Economics, 40(4), 1087-1122.
- Pyromalis, V. D., & Vozikis, G. S. (2009). Mapping the successful succession process in family firms: Evidence from Greece. International Entrepreneurship and Management Journal, 5(4), 439-460.
- Qin, Z., & Wang, Q. (2012). Father-Daughter Succession in China: the Conceptual Framework and a Case Study. The Business Review, 20(1), 68-75.
- Schiefer, J., Überwimmer, M., Füreder, R., & Costa, Y. (2019). Obstacles and Challenges of Business Succession in Central Europe. Journal of International Business Research and Marketing, 4(5), 24-29.
- Sharma, P., & Rao, S. (2000). Successor attributes in Indian and Canadian family firms: A comparative study. Family Business Review, 13, 313-330.
- Sharma, P., Chrisman, J. J., & Chua, J. H. (2003). Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18, 667-687.
- Sharma, P., Chrisman, J. J., Pablo, A. L, & Chua, J. H. (2001). Determinants of Initial Satisfaction with the Succession Process in Family Firms: A Conceptual Model. Entrepreneurship Theory and Practice, 25(3), 17-36.
- Trompenaars, F., & Hampden-Turner, C. (1998). Riding the Waves of Culture (2nd ed.). London: Nicholas Brealey Publishing.
- Van der Merwe, S. P. (2010). An Assessment of the Determinants of Successor Development in Family Businesses. Acta Commercii, 10(1), 120-136.
- Venter, E., Boshoff, C., & Maas, G. (2005). The Influence of Successor-Related Factors on the Succession Process in Small and Medium-Sized Family Businesses. Family Business Review, 18(4), 283-303.
- World Values Survey. (2020).
- Zellweger, T., Sieger, P., & Halter, F. (2011). Should I stay or should I go? Career choice intentions of students with family business background. Journal of Business Venturing, 26(5), 521-536.
-
Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4519 Downloads: 1730 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
-
Human resource management in promoting innovation and organizational performance
I Gede Riana ,
Gede Suparna ,
I Gusti Made Suwandana ,
Sebastian Kot 
,
Ismi Rajiani
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 3559 Downloads: 851 TO CITE АНОТАЦІЯHuman resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.
-
Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia
RR. Iramani , Muazaroh Muazaroh , Abdul Mongid
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.01
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 1-11 Views: 3213 Downloads: 314 TO CITE АНОТАЦІЯThis paper aims to examine the impact of Good Corporate Governance (GCG) practice on bank stability and performance. Governance is measured using the GCG rating that covers eleven aspects. The authors apply instrumental regression to link governance to performance and stability. The study covers a sample of 150 banks. The result shows that bank stability can mediate bank governance and bank performance. On the determinant of bank performance, it can be concluded that the GCG rating is positive and directly influences bank performance. Bank stability is also positive for bank performance indicating the indirect contribution of the GCG rating to bank performance. NPL, LDR, CAR and bank’s size (LASSET) are all negative and significant. The aim of this paper is to provide strong empirical evidence on the importance of governance and stability for performance. The limitations of this paper are the size of the sample and that it only covers public banks which are theoretically required to apply better governance in all aspects of their business by the Capital Market Authority.
