Succession challenges in maintaining sustainability: Indonesian mining and construction industry

Ivan, Rahadian Firdaus (2022) Succession challenges in maintaining sustainability: Indonesian mining and construction industry. [Dissertation (University of Nottingham only)]

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Abstract

The family business is the oldest form of business organisation and is very important in the development of economies around the world. It was found that about 96% of the 165,000 companies established in Indonesia are family businesses and have a contribution to Gross Domestic Product. Topics that become essential issues in family businesses are the problems of family business processes and the sustainability of family businesses after succession or transition from the first generation to the next generation. In Indonesia, there are only 13% of companies have a robust and formalised plan. Another 39% have fewer formal plans, while 35% have no plans at all. The mining industry is one sector that contributes to the rapid growth of Indonesia's market capitalisation. The value of GDP generated from industrial mining in Indonesia reaches $13.8 million and is the highest in Southeast Asia.

This research focuses on the succession process in a mining and construction company to ensure the company's long-term viability. With a single case study unit of analysis, this study used an explanatory qualitative method. According to the findings of this study, the succession process has four stages: initiation, integration, involvement, and retirement. Differences in leadership styles, cultural shifts, successors' need to establish themselves outside the family business, and predecessors who still feel capable of working all contribute to resistance and conflict in the succession process. When it comes to decreasing conflict, communication is crucial. The succession process is heavily influenced by social principles, religion, and kinship.

Item Type: Dissertation (University of Nottingham only)
Keywords: family business, economic development, construction industry, mining industry
Depositing User: Ivan, Rahadian
Date Deposited: 28 Feb 2022 03:06
Last Modified: 28 Feb 2022 03:06
URI: http://eprints.nottingham.ac.uk/id/eprint/66587

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