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

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  • Denny Bernadus
  • Christina Whidya Utami
  • Liliana

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.

Suggested Citation

  • Denny Bernadus & Christina Whidya Utami & Liliana, 2018. "Factor Analysis of Ownership Behavior at Family Business: The Case of Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 27-38.
    • Handle: RePEc:ers:ijebaa:v:vi:y:2018:i:2:p:27-38
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    References listed on IDEAS

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    1. Christina Whidya Utami & Denny Bernardus & Gek Sintha, 2017. "The Pattern Analysis of Family Business Succession: A Study on Medium Scale Family Business in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 461-474.
    2. Isabelle Le Breton–Miller & Danny Miller & Lloyd P. Steier, 2004. "Toward an Integrative Model of Effective FOB Succession," Entrepreneurship Theory and Practice, , vol. 28(4), pages 305-328, July.
    3. Peter J Baldacchino & Rosalene Caruana & Simon Grima & Frank H. Bezzina, 2017. "Selected Behavioural Factors in Client-Initiated Auditor Changes: The Client-Auditor Perspectives," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 16-47.
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    Cited by:

    1. Rudi Zulfikar & Nana Nofianti & Kurniasih Dwi Astuti & Meutia Meutia & Aldi Ramadan, 2020. "The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-135.
    2. I.G. Kuznetsova & O.Yu. Voronkova & S.Y. Bakhvalov & I.R. Ruiga & G.N. Zhuruli & V.E. Levichev, 2018. "Formation of Human Capital as a Key Factor in Ensuring the National Security of Agriculture in the Digital Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 73-83.
    3. Ekimova K.V. & Nazarchuk N.P. & Denisova I.P. & Gruzdneva E.N., 2019. "The Concept of Special Escrow Accounts to Improve Mortgage Housing Loans in Russia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 135-146.
    4. Indrayani & Awis Al Qarny, 2020. "Factors Affecting Work Satisfaction and Employee Performance in Automotive Industrial Chain," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 317-325.

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