Family Business Succession in Indonesia: A Study of Hospitality Industry

Winoto and Graito (2008) drew up that family business dominates the business in Indonesia and spread in various fields of industry and organization, including in hospitality industry [28]. Family businesses worldwide are facing the problem of succession, inclusive in Indonesia. They can not avoid the issue of succession which generates a succession planning in family business needs. This paper investigates a number of issues regarding succession in family business, such as: a succession plan had by owner/managers of family business, the formulation of succession plan and factors do influencing on the formulation of a succession plan. A study of family business in hospitality industry is carried out in Indonesia. This study uses a qualitative method by conducting some interviews. The results shed light on the issue of succession planning in family business for hospitality industry. The contribution from this study is to provide an overview for consideration by the owner/managers of family business in hospitality industry and to be references about family business in Indonesia which is very limited.