SUSTAINABILITY OF FAMILY BUSINESS: MILLENNIALS INTENTION TO STAY IN THE FAMILY BUSINESS AS THE RESULT OF STEWARDSHIP CLIMATE, MEDIATED BY SUCCESSOR’S TRUST AND SOCIOEMOTIONAL WEALTH

Irzal Riznika, Thomas Stefanus Kaihatu

Abstract


This research studies the influence of stewardship on the intention to stay in the family business. Successor’s trust and socioemotional wealth are also studied as mediator. The population in this research is Millennials that work in a family business and have prepared as a successor. Samples were taken purposively from family business members of KADIN East Java (Chamber of Commerce). The sample collected was 221. Data were analyzed with Andrew Hayes PROCESS model 4. The result shows that stewardship has a significant positive effect on the successor’s trust, socioemotional wealth, and intention to stay. Successor’s trust and socioemotional wealth have a significant positive effect on the intention to stay. Successor’s trust and socioemotional wealth have a mediating effect on the relationship between stewardship and intention to stay. The findings contribute to the succession strategy in the family business, especially to make Millennials’ successors willing to stay in the family business. The suggestion for future research is to test the effect on different cohorts as Generation Z or different family cultures.

Keywords


stewardship; successor’s trust; socioemotional wealth; intention to stay; Millennials

Full Text:

PDF

References


Ayranci, E. 2014. A Study on the Influence of Family on Family Business and Its Relationship to Satisfaction with Financial Performance. E a M: Ekonomie a Management, 17(2), 87–105. https://doi.org/ 10.15240/tul/001/2014-2-007.

Azizi, M., Salmani Bidgoli, M., and Seddighian Bidgoli, A. 2017. Trust in Family Businesses: A More Comprehensive Empirical Review. Cogent Business and Management, 4(1). https://doi.org/10.1080/ 23311975.2017.1359445.

Berrone, P., Cruz, C., and Gomez-Mejia, L. R. 2012. Socioemotional Wealth in Family Firms: Theoretical Dimensions, Assessment Approaches, and Agenda for Future Research. Family Business Review, 25(3), 258–279. https://doi.org/10.1177/ 0894486511435355.

Bizri, R. 2016. Succession in The Family Business: Drivers and Pathways. International Journal of Entrepreneurial Behaviour and Research, 22(1), 133–154. https://doi.org/10.1108/IJEBR-01-2015-0020.

Blau, P. M. 1964. Exchange and Power in Social Life. Transaction Publishers.

Boeije, H. and Willis, G. 2013. The Cognitive Interviewing Reporting Framework (CIRF): Towards the Harmonization of Cognitive Testing Reports. Methodology, 9(3), 87–95. https://doi.org/10.1027/16142241/a000075.

Bozer, G., Levin, L., and Santora, J. C. 2017. Succession in Family Business: Multi-source Perspectives. Journal of Small Business and Enterprise Development, 24(4), 753–774. https://doi.org/10.1108/JSBED-102016-0163.

Breton-Miller, Isabelle Le and D. Miller. 2015. Learning Stewardship in Family Firms: for Family, by Family, Across the Life Cycle. Academy of Management Learning & Education, 14(3), 386–399. https:// doi.org/10.5465/amle.2014.0131.

Craig, J. B. 2018. Stewardship: A Very Practical Family Business Theory. The Family Business Consulting Group. https://www.thefbcg.com/resource/stewardship-a-very-practical-family-business-theory/.

Cropanzano, R., Anthony, E. L., Daniels, S. R., and Hall, A. V. 2017. Social Exchange Theory: A Critical Review with Theoretical Remedies. In Academy of Management Annals (Vol. 11, Issue 1, pp. 479–516). https://doi.org/10.5465/annals.2015.0099.

Daspit, J. J., Holt, D. T., Chrisman, J. J., & Long, R. G. 2016. Examining Family Firm Succession from a Social Exchange Perspective: A Multiphase, Multistakeholder Review. Family Business Review, 29(1), 44–64. https://doi.org/10.1177/ 0894486515599688.

Davis, J. H., Allen, M. R., and Hayes, H. D. 2010. Is Blood Thicker than Water? A Study of Stewardship Perceptions in Family Business. Entrepreneurship: Theory and Practice, 34(6), 1093–1116. https:// doi.org/10.1111/j.1540-6520.2010.00415.x.

Davis, J. H., Schoorman, F. D., and Donaldson, L. 1997. Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47. https:// doi.org/10.5465/AMR.1997.9707180258.

Effendi, L. V. 2020. The Impact of Family Conflict Toward Intention to Stay in the Family Business: The Moderating Effect of Socioemotional Wealth. Jurnal Aplikasi Manajemen, 18(1), 64–74. https://doi.org/ 10.21776/ub.jam.2020.018.01.06.

Gagné, M., Marwick, C., Brun de Pontet, S., and Wrosch, C. 2019. Family Business Succession: What’s Motivation Got to Do With It?. Family Business Review, December. https://doi.org/10.1177/ 0894486519894759.

Ghosh, P., Satyawadi, R., Joshi, J. P., and Shadman, M. 2013. Who Stays with You? Factors Predicting Employees’ Intention To Stay. International Journal of Organizational Analysis, 21(3), 288–312. https:// doi.org/10.1108/IJOA-Sep-2011-0511.

Glazer, S., Mahoney, A. C., and Randall, Y. 2019. Employee Development’s Role in Organizational Commitment: A Preliminary Investigation Comparing Generation X and Millennial Employees. Industrial and Commercial Training, 51(1), 1–12. https://doi.org/ 10.1108/ICT-07-2018-0061.

Gómez-Mejía, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J. L., and Moyano-Fuentes, J. 2007. Socioemotional Wealth and Business Risks in Family-Controlled Firms: Evidence from Spanish Olive Oil Mills. Administrative Science Quarterly, 52(1), 106–137. https://doi.org/10.2189/asqu. 52.1.106.

Hair, J. F., Black, W. C., Babin, B. J., and Anderson, R. E. 2014. Multivariate Data Analysis (7th ed.). Pearson. https://doi.org/10.1002/9781118895238.ch8.

Harris, K., Hinds, L., Manasingh, S., Rubino, M., and Morote, E. S. 2016. What Type of Leadership in Higher Education Promotes Job Satisfaction and Increases Retention?. Journal for Leadership and Instruction, Spring, 27–32.

Hauck, J., Suess-Reyes, J., Beck, S., Prügl, R., and Frank, H. 2016. Measuring Socioemotional Wealth in Family-Owned and -Managed Firms: A Validation and Short Form of the FIBER Scale. Journal of Family Business Strategy, 7(3), 133–148. https://doi.org/ 10.1016/j.jfbs.2016.08.001.

Hayes, A. F. 2013. Model Templates for PROCESS for SPSS and SAS. Model Templates for PROCESS for SPSS and SAS. https://doi.org/http://afhayes.com/ public/templates.pdf.

Hayes, A. F. 2015. An Index and Test of Linear Moderated Mediation. Multivariate Behavioral Research, 50(1). https://doi.org/10.1080/00273171.2014.962683.

Hayes, A. F. 2018. Introduction to Mediation, Moderation, and Cconditional Process Analysis: A regression-Based Approach (2nd ed.). The Guilford Press.

ILO. 2019. Financing Small Businesses in Indonesia: Challenges and Opportunities. In International Labour Organization. www.ilo.org/publns

Kapoor, C. and Solomon, N. 2011. Understanding and Managing Generational Differences in The Workplace. In Worldwide Hospitality and Tourism Themes (Vol. 3, Issue 4, pp. 308–318). https://doi.org/ 10.1108/17554211111162435.

Klenke, K. 2018. Knowledge Transfer Through Leadership Succession in Intergenerational Family Firms. International Leadership Journal, 10(1), 3–36. http:/ /search.ebscohost.com/login.aspx?direct=true& AuthType=ip,shib&db=bth&AN=129387881& site=ehost-live&custid=ns235470.

Kuratko, D. F. 2016. Entrepreneurship Theory, Process, and Practice (A. Mulvaney (ed.) 4th ed). Cengage Leaming Australia Pty Llmlted.

Liu, X., Wang, Y., Li, F., Pan, L., and Tang, N. 2013. The Influence of Interactions Between Offspring Successors and Other Factors Have on Their Succession Intention in Family Business. International Conference on the Modern Development of Humanities and Social Science. https://doi.org/10.2991/ mdhss-13.2013.99.

Makó, C., Csizmadia, P., and Heidrich, B. 2018. Heart and soul: Transferring ‘Socio-Emotional Wealth’ (SEW) in Family Business Succession. Journal of Entrepreneurship and Innovation in Emerging Economies, 4(1), 53–67. https://doi.org/10.1177/ 2393957517749708.

Markowitz, G. A. 2012. Faculty Intent to Stay and the Perceived Relationship with Supervisor at A Career-Focused University. Open Access Dissertations, 1–113. http://scholarlyrepository.miami.edu/ oa_dissertations/890/.

Martínez-Romero, M. J. and Rojo-Ramírez, A. A. 2016. SEW: Looking for a Definition and Controversial Issues. European Journal Of Family Business, 6(1). https://doi.org/10.24310/ejfbejfb.v6i1.5042.

Neubaum, D. O., Thomas, C. H., Dibrell, C., and Craig, J. B. 2017. Stewardship Climate Scale: An assessment of Reliability and Validity. Family Business Review, 30(1), 37–60. https://doi.org/10.1177/ 0894486516673701.

Oktavio, A., Laurent, M., and Wijaya, V. 2020. Memprediksi turnover Intention melalui Employee Motivation dan Employee Engagement di Hotel W Bali - Seminyak. Jurnal Konsep Bisnis Dan Manajemen, 6(2), 188–198. https://doi.org/10.31289/ jkbm.v6i2.3711.

Oluwafunmilayo, A. M., Ayodele Olokundun, M., Chinonye Love Moses, P., and Chinyerem Grace, A. 2018. The Role of Prior Family Business Background on Entrepreneurial Intentions. Covenant Journal of Entrepreneurship (CJoE), 2(1), 1–14. h t t p s: / / p d fs . se m a n t i csc h ol a r . or g / 3 6 8 d / 0def86e717a1e9a4b999d882b0fdced7a59f.pdf.

Price, J. L. and Mueller, C. W. 1981. A causal Model for Turnover for Nurses. Academy of Management Journal. Academy of Management, 24(3), 543–565. https://doi.org/10.2307/255574.

PwC. 2018. Family Business Survey 2018: Indonesia Report. [Online]. from: https://www.pwc.com/id/en/ epc/fbs-2018-indonesia.pdf.

Razook, C. 2016. Family Businesses Need Good Governance, too. The Jakarta Post. https://www. thejakartapost.com/academia/2016/11/15/familybusinesses-need-good-governance-too.html.

Shahid, A. 2018. Employee Intention to Stay: An Environment Based on Trust and Motivation. Journal of Management Research, 10(4), 58. https://doi.org/ 10.5296/jmr.v10i4.13680.

Stavrou, E. T. 1998. A Four Factor Model: A Guide to Planning Next Generation Involvement in The Family Firm. Family Business Review, 11(2), 135– 142. https://doi.org/10.1111/j.1741-6248.1998.00135.x.

Tan, J. D., Supratikno, H., Pramono, R., Purba, J. T., and Bernarto, I. 2019. Nurturing Transgenerational Entrepreneurship in Ethnic Chinese Family SMEs: Exploring Indonesia. Journal of Asia Business Studies, 13(2), 294–325. https://doi.org/10.1108/ JABS-04-2018-0132.

UU No. 20. 2008. Undang-Undang Republik Indonesia Nomor 20 Tahun 2008 Tentang Usaha Mikro, Kecil, dan Menengah. In UU No. 20 (p. 31). https:/ /www.ojk.go.id/sustainable-finance/id/peraturan/ undang-undang/Documents/Undang-Undang Nomor 20 Tahun 2008 Tentang Usaha Mikro, Kecil, dan Menengah.pdf.

Wang, Y. 2016. Environmental Dynamism, Trust and Dynamic Capabilities of Family Businesses. International Journal of Entrepreneurial Behaviour and Research, 22(5), 643–670. https://doi.org/10.1108/ IJEBR-11-2015-0234.

Wong, S. C. keung and Liu, G. J. 2010. Will Parental Influences Affect Career Choice?: Evidence from Hospitality and Tourism Management Students in China. International Journal of Contemporary Hospitality Management, 22(1), 82–102. https://doi.org/ 10.1108/09596111011013499.

Zellweger, T., Sieger, P., and 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. https://doi.org/10.1016/j.jbusvent.2010.04.001.




DOI: http://dx.doi.org/10.21776/ub.jam.2021.019.01.08

Refbacks

  • There are currently no refbacks.