Factor Analysis of Ownership Behavior at Family Business: The Case of Indonesia

Denny Bernadus, Christina Whidya Utami, Liliana
International Journal of Economics and Business Administration, Volume VI, Issue 2, 27-38, 2018
DOI: 10.35808/ijeba/155

Abstract:

There are many family business in Indonesia that cannot survive after the third generation. One of the factors affecting the inability to survive after the third generation can be attributed to process of succession. Ther are several stages involved in the arrangement of a successor. The successor induction, followed by the phasing out of the predecessors\' role, until the successor is ready to take a full leadership are factors which play an important role and they are also part of other important elements of ownership behavior. Ownership behavior is a factor to balance the privileges of ownership, such as wealth, power, joy, source of motivation, related to the task and ownership risks, including proper concern for the corporate wellbeing and accountability for corporate success. This study explores the factors regarding ownership behavior, which is professionalism, active governance, owner as a resource and basic duty. The sample of this research is 49 respondents of family business owners. The research uses factor analysis to prove that all indicators developed professionalism, active governance, owners as resources and basic duties, which at the end, proves that professionalism, active governance, owners as the resources and basic duties significantly develop the ownership behavior family business factor in Indonesia producing four new factors, namely professional governance, main duties, owner responsibility and professional activities.


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