Case Study of the Entrepreneurial Orientation Role in the Sustainability of Family Business in Central Java

Nathania Emmanuel Puteri Subagyo, Susilo Toto Rahardjo

Abstract


This research explores the role of entrepreneurial orientation in maintaining the sustainability of family businesses in Central Java, Indonesia.  Family businesses have a significant contribution to the Indonesian economy, so maintaining the sustainability of the family business is important.  However, in increasingly competitive industrial conditions and a dynamic economic environment, vulnerable family businesses are unable to survive.  Building from research related to the influence of entrepreneurial orientation in family business, this study provides an in-depth understanding of the role of entrepreneurial orientation in creating innovation and maintain the competitive position of a family business across generations, so that the sustainability of related family businesses can be maintained. This research was conducted by explorative case study methods with two generations and senior business employees at a family business in Central Java, Indonesia. Meanwhile, the results showed that family orientation plays a role in maintaining the sustainability of the family business through its contribution to improving performance and company expansion

Keywords


entrepreneurial; sustainability; family business

Full Text:

PDF

References


Alam, M. K. (2020). A systematic qualitative case study: questions, data collection, NVivo analysis and saturation. Qualitative Research in Organizations and Management: An International Journal, 16(1), 1–31. https://doi.org/10.1108/qrom-09-2019-1825

Alayo, M., Maseda, A., Iturralde, T., & Arzubiaga, U. (2019). Internationalization and entrepreneurial orientation of family SMEs: The influence of the family character. International Business Review, 28(1), 48–59. https://doi.org/10.1016/j.ibusrev.2018.06.003

Anning-Dorson, T. (2018). Innovation and competitive advantage creation. International Marketing Review, 35(4), 580–600. https://doi.org/10.1108/imr-11-2015-0262.

Arz, C. (2019). Bridging the micro-macro gap: A multi-layer culture framework for understanding entrepreneurial orientation in family firms. Journal of Family Business Strategy, 10(3), 100287. https://doi.org/10.1016/j.jfbs.2019.04.006

Au, K., Chiang, F. F., Birtch, T. A., & Ding, Z. (2012). Incubating the next generation to venture: The case of a family business in Hong Kong. Asia Pacific Journal of Management, 30(3), 749–767. https://doi.org/10.1007/s10490-012-9331-7

Central Statistics Agency, & Directorate General of PKH, Ministry of Agriculture. (2020). Animal Husbandry In Figures 2020. Central Bureau of Statistics. https://www.bps.go.id/publication/2020/06/10/93c6d3265760176e2a87c8cf/peternakan-dalam-angka-2020.html.

Central Bureau of Statistics. (2019). Laying Hens Egg Production by Province, 2009-2019. Central Bureau of Statistics. https://bps.go.id/linkTableDinamis/view/id/1079.

Bansal, P., & DesJardine, M. R. (2014). Business sustainability: It is about time. Strategic Organization, 12(1), 70–78. https://doi.org/10.1177/1476127013520265

Basco, R., Calabrò, A., & Campopiano, G. (2019). Transgenerational entrepreneurship around the world: Implications for family business research and practice. Journal of Family Business Strategy, 10(4), 100249. https://doi.org/10.1016/j.jfbs.2018.03.004.

Baxter, P., & Jack, S. (2008). Qualitative Case Study Methodology: Study Design and Implementation for Novice Researchers. The Qualitative Report, 13(4).

Bozer, G., Levin, L., & 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-10-2016-0163

Carlock, R. S., & Ward, J. L. (2001). Strategic Planning for the Family Business. Palgrave.

Chirapanda, S. (2019). Identification of success factors for sustainability in family businesses. Journal of Family Business Management, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jfbm-05-2019-0030

Chua, J. H., Chrisman, J. J., & Sharma, P. (1999). Defining the Family Business by Behavior. Entrepreneurship Theory and Practice, 23(4), 19–39. https://doi.org/10.1177/104225879902300402

Cirillo, A., Pennacchio, L., Carillo, M. R., & Romano, M. (2019). The antecedents of entrepreneurial risk-taking in private family firms: CEO seasons and contingency factors. Small Business Economics, 56(4), 1571–1590. https://doi.org/10.1007/s11187-019-00279-x

Creswell, J. W. (2009). Research design: qualitative, quantitative, and mixed methods approaches. SAGE Publications, Inc.

Donnelley, R. G. (1988). The Family Business. Family Business Review, 1(4), 427–445. https://doi.org/10.1111/j.1741-6248.1988.00427.x

Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone.

Frederick, H. H., O'Connor, A., & Kuratko, D. F. (2016). Entrepreneurship: Theory / Process / Practice. Cengage Learning.

Greene, F. J. (2020). Entrepreneurship: theory and practice. Macmillan International.

Hanson, S. K., Hessel, H. M., & Danes, S. M. (2019). Relational processes in family entrepreneurial culture and resilience across generations. Journal of Family Business Strategy, 10(3), 100263. https://doi.org/10.1016/j.jfbs.2018.11.001

Hidayati, A., Hermawan, A., Soehadi, A. W., & Hartoyo. (2020). Intra-family succession insights: the presence of millennial cohort successors. Journal of Family Business Management, 11(1), 107–135. https://doi.org/10.1108/jfbm-07-2019-0052

Hutahayan, B. (2019). Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java. Asia Pacific Journal of Innovation and Entrepreneurship, 13(2), 231–246. https://doi.org/10.1108/apjie-09-2018-0053.

Jalilvand, M. R., Nasrolahi Vosta, L., Khalilakbar, R., Khazaei Pool, J., & Tabaeeian, R. A. (2017). The Effects of Internal Marketing and Entrepreneurial Orientation on Innovation in Family Businesses. Journal of the Knowledge Economy, 10(3), 1064–1079. https://doi.org/10.1007/s13132-017-0516-7

Kraus, S., Kallmuenzer, A., Stieger, D., Peters, M., & Calabrò, A. (2018). Entrepreneurial paths to family firm performance. Journal of Business Research, 88, 382–387. https://doi.org/10.1016/j.jbusres.2017.12.046

Krishnan, R., Yen, P., Agarwal, R., Arshinder, K., & Bajada, C. (2021). Collaborative innovation and sustainability in the food supply chain- evidence from farmer producer organisations. Resources, Conservation and Recycling, 168, 105253. https://doi.org/10.1016/j.resconrec.2020.105253.

Lee, K. S., Lim, G. H., & Lim, W. S. (2003). Family Business Succession: Appropriation Risk and Choice of Successor. Academy of Management Review, 28(4), 657–666. https://doi.org/10.5465/amr.2003.10899446

Lee, T., & Chu, W. (2017). The relationship between entrepreneurial orientation and firm performance: Influence of family governance. Journal of Family Business Strategy, 8(4), 213–223. https://doi.org/10.1016/j.jfbs.2017.09.002

Liu, C.-H. S., & Fang, Y.-P. (2016). Night markets: entrepreneurship and achieving competitive advantage. International Journal of Contemporary Hospitality Management, 28(11), 2374–2398. https://doi.org/10.1108/ijchm-03-2015-0114.

Lu, Y., Au, K., Peng, M. W., & Xu, E. (2013). Strategic management in private and family businesses. Asia Pacific Journal of Management, 30(3), 633–639. https://doi.org/10.1007/s10490-013-9359-3

Lumpkin, G. T., Brigham, K. H., & Moss, T. W. (2010). Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses. Entrepreneurship & Regional Development, 22(3-4), 241–264. https://doi.org/10.1080/08985621003726218

Mahto, R. V., Davis, P. S., & Khanin, D. (2013). Continuation Commitment: Family’s Commitment to Continue the Family Business. Journal of Family and Economic Issues, 35(2), 278–289. https://doi.org/10.1007/s10834-013-9367-y

Makhdoom, H. ur, Li, C., & Asim, S. (2019). Diffusion of innovation through individual and collective entrepreneurship. Asia Pacific Journal of Innovation and Entrepreneurship, 13(1), 89–107. https://doi.org/10.1108/apjie-06-2018-0040.

Mantok, S., Sekhon, H., Sahi, G. K., & Jones, P. (2019). Entrepreneurial orientation and the mediating role of organisational learning amongst Indian S-SMEs. Journal of Small Business and Enterprise Development, 26(5), 641–660. https://doi.org/10.1108/jsbed-07-2018-0215

Masanet-Llodra, M. J. (2006). Environmental Management Accounting: A Case Study Research on Innovative Strategy. Journal of Business Ethics, 68(4), 393–408. https://doi.org/10.1007/s10551-006-9029-1

Miles, M. B., Huberman, A. M., & Saldaña Johnny. (2014). Qualitative data analysis: a methods sourcebook. Sage.

Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, 29(7), 770–791. https://doi.org/10.1287/mnsc.29.7.770

Miller, D., Le Breton-Miller, I., Lester, R. H., & Cannella, A. A. (2007). Are family firms really superior performers? Journal of Corporate Finance, 13(5), 829–858. https://doi.org/10.1016/j.jcorpfin.2007.03.004.

Monteiro, A. P., Soares, A. M., & Rua, O. L. (2017). Linking intangible resources and export performance. Baltic Journal of Management, 12(3), 329–347. https://doi.org/10.1108/bjm-05-2016-0097

Moreno-Menéndez, A. M., & Casillas, J. C. (2021). How do family businesses grow? Differences in growth patterns between family and non-family firms. Journal of Family Business Strategy, 100420. https://doi.org/10.1016/j.jfbs.2021.100420

Pindado, E., & Sánchez, M. (2017). Researching the entrepreneurial behaviour of new and existing ventures in European agriculture. Small Business Economics, 49(2), 421–444. https://doi.org/10.1007/s11187-017-9837-y.

Porfírio, J. A., Felício, J. A., & Carrilho, T. (2020). Family business succession: Analysis of the drivers of success based on entrepreneurship theory. Journal of Business Research, 115, 250–257. https://doi.org/10.1016/j.jbusres.2019.11.054

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance. Free Press.

Pricewaterhouse Coopers. (2014). Family Business Survey 2014 Indonesia. PWC Indonesia. http://www.pwc.com/id.

Roberts, S., & Tribe, J. (2008). Sustainability indicators for small tourism enterprises – an exploratory perspective. Journal of Sustainable Tourism, 16(5), 575–594. https://doi.org/10.1080/09669580802159644

Rondi, E., De Massis, A., & Kotlar, J. (2019). Unlocking innovation potential: A typology of family business innovation postures and the critical role of the family system. Journal of Family Business Strategy, 10(4), 100236. https://doi.org/10.1016/j.jfbs.2017.12.001.

Sanchez-Famoso, V., Pittino, D., Chirico, F., Maseda, A., & Iturralde, T. (2019). Social capital and innovation in family firms: The moderating roles of family control and generational involvement. Scandinavian Journal of Management, 35(3), 101043. https://doi.org/10.1016/j.scaman.2019.02.002.

Savitz, A. W., & Weber, K. (2014). The triple bottom line: How Today's best-run companies are achieving economic, social, and environmental success--and how you can too. Jossey-Bass.

Schott, T., & Sedaghat, M. (2014). Innovation embedded in entrepreneurs’ networks and national educational systems. Small Business Economics, 43(2), 463–476. https://doi.org/10.1007/s11187-014-9546-8.

Schumpeter, J. A. (1983). The theory of economic development: an inquiry into profits, capital, credit, interest and the business cycle. Transaction Publishers.

Sciascia, S., & Mazzola, P. (2008). Family Involvement in Ownership and Management: Exploring Nonlinear Effects on Performance. Family Business Review, 21(4), 331–345. https://doi.org/10.1177/08944865080210040105

Shah, S. Z., & Ahmad, M. (2019). Entrepreneurial orientation and performance of small and medium-sized enterprises. Competitiveness Review: An International Business Journal, 29(5), 551–572. https://doi.org/10.1108/cr-06-2018-0038

Soleimanof, S., Morris, M. H., & Jang, Y. (2021). Following the footsteps that inspire: Parental passion, family communication, and children’s entrepreneurial attitudes. Journal of Business Research, 128, 450–461. https://doi.org/10.1016/j.jbusres.2021.02.018

Stenholm, P., Pukkinen, T., & Heinonen, J. (2015). Firm Growth in Family Businesses-The Role of Entrepreneurial Orientation and the Entrepreneurial Activity. Journal of Small Business Management, 54(2), 697–713. https://doi.org/10.1111/jsbm.12166.

Sugiyono. (2016). Quantitative, Qualitative and R&D Research Methods. Bandung: PT Alfabet.

Tajeddini, K., Martin, E., & Ali, A. (2020). Enhancing hospitality business performance: The role of entrepreneurial orientation and networking ties in a dynamic environment. International Journal of Hospitality Management, 90, 102605. https://doi.org/10.1016/j.ijhm.2020.102605.

Tan, J. D., Supratikno, H., Pramono, R., Purba, J. T., & 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.

The Family Farm Institute, Inc. (2014). Family Enterprise: Understanding Families in Business and Families of Wealth, + Online Assessment Tool. John Wiley & Sons, Inc.

Vaitoonkiat, E., & Charoensukmongkol, P. (2020). Interaction effect of entrepreneurial orientation and stakeholder orientation on the business performance of firms in the steel fabrication industry in Thailand. Journal of Entrepreneurship in Emerging Economies, 12(4), 453–473. https://doi.org/10.1108/jeee-05-2019-0072

Vrontis, D., Culasso, F., Giacosa, E., & Stupino, M. (2019). Entrepreneurial exploration and exploitation processes of family businesses in the food sector. British Food Journal, 121(11), 2759–2779. https://doi.org/10.1108/bfj-02-2019-0118

Winnard, J., Adcroft, A., Lee, J., & Skipp, D. (2014). Surviving or flourishing? integrating business resilience and sustainability. Journal of Strategy and Management, 7(3), 303–315. https://doi.org/10.1108/jsma-11-2012-0059

Wong, D. T. W., & Ngai, E. W. T. (2021). Economic, organizational, and environmental capabilities for Business Sustainability Competence: Findings from case studies in the Fashion Business. Journal of Business Research, 126, 440–471. https://doi.org/10.1016/j.jbusres.2020.12.060

Woodfield, P., Woods, C., & Shepherd, D. (2017). Sustainable entrepreneurship: another avenue for family business scholarship? Journal of Family Business Management, 7(1), 122–132. https://doi.org/10.1108/jfbm-12-2015-0040.

Yin, R. K. (2011). Qualitative research from start to finish. Guilford Press.

Zainal, Z. (2007). Case study as a research method . Journal of Humanity, 9.

Zehir, C., Can, E., & Karaboga, T. (2015). Linking Entrepreneurial Orientation to Firm Performance: The Role of Differentiation Strategy and Innovation Performance. Procedia - Social and Behavioral Sciences, 210, 358–367. https://doi.org/10.1016/j.sbspro.2015.11.381

Zellweger, T. (2017). Managing the family business: theory and practice. Edward Elgar.

Zellweger, T. M., Nason, R. S., & Nordqvist, M. (2011). From Longevity of Firms to Transgenerational Entrepreneurship of Families. Family Business Review, 25(2), 136–155. https://doi.org/10.1177/0894486511423531




DOI: https://doi.org/10.33258/birci.v5i2.5219

Article Metrics

Abstract view : 63 times
PDF - 54 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.