Strategic Formulation for Millennial Successors in International Family Business

Fuji Tori Kebela, Prof. Amin Wibowo, S.E., M.B.A., Ph.D.

2023 | Tesis | S2 Manajemen

Family businesses are a critical component of a country's economy, with research indicating that they can contribute significantly to its growth and stability. Nowadays, the increasing number of Millennials joining the workforce in the past decade has had a significant impact on workplace demographics. Millennials are also have a management position or other word continuing business from previous generation in family enterprise. As the number of Millennials entering the workforce continues to increase, there is a growing concern about how their communication orientations and skills, as well as their general predispositions and habits, might affect older Boomer and Gen X cohort members in their organizations. Particularly family business has unique characteristic such as all decision making are controlled by family. It leads Millennial successor face some challenges in balancing family interest and current global dynamic. Then, it is important to understand about Millennial generation including their strength and weakness that could affect business continuity. This research conducted in Indonesia, where 95% of companies are family businesses and contribute more than 60% to a country’s economy. I used Theory of Planned Behaviour, Familiness and The entrepreneurship-based education to enrich the understanding about the impact of millennial successors in family business. From the practical point of view, the obtained insights from millennials successors and non-family members can be used to guide other family business owners in seeing how to effectively prepare and support millennial successors within their company to be a future leader, leading the company to the international expansion, preserving family values and cohesion.

Family businesses are a critical component of a country's economy, with research indicating that they can contribute significantly to its growth and stability. Nowadays, the increasing number of Millennials joining the workforce in the past decade has had a significant impact on workplace demographics. Millennials are also have a management position or other word continuing business from previous generation in family enterprise. As the number of Millennials entering the workforce continues to increase, there is a growing concern about how their communication orientations and skills, as well as their general predispositions and habits, might affect older Boomer and Gen X cohort members in their organizations. Particularly family business has unique characteristic such as all decision making are controlled by family. It leads Millennial successor face some challenges in balancing family interest and current global dynamic. Then, it is important to understand about Millennial generation including their strength and weakness that could affect business continuity. This research conducted in Indonesia, where 95% of companies are family businesses and contribute more than 60% to a country’s economy. I used Theory of Planned Behaviour, Familiness and The entrepreneurship-based education to enrich the understanding about the impact of millennial successors in family business. From the practical point of view, the obtained insights from millennials successors and non-family members can be used to guide other family business owners in seeing how to effectively prepare and support millennial successors within their company to be a future leader, leading the company to the international expansion, preserving family values and cohesion.

Kata Kunci : Millennial, Family Business, Business Dynamics, International Operations, Theory of Planned Behaviour, Familiness and The Entrepreneurship-Based Education