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Alifah Nagita Fauzia
Universitas Ciputra, Surabaya, Indonesia
Economics, Econometrics & Finance

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Driving Family Business Sustainability Through Effective Succession: The Roles of Successor Competence and Family Governance Alifah Nagita Fauzia; Hermeindito Hermeindito
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 9 No 2 (2026): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v9i2.9636

Abstract

This study aims to analyze the effects of Succession Planning, Successor Competence, and Family Governance on Family Business Sustainability, with Effectiveness of Succession serving as a mediating variable. A quantitative approach was employed using a survey method targeting owners and family members involved in family businesses. Data were analyzed using Structural Equation Modeling (SEM) with the Partial Least Squares approach. The results indicate that succession planning, successor competence, and family governance have significant direct and indirect effects on family business sustainability. Furthermore, the Effectiveness of Succession was found to mediate the relationships between all exogenous variables and business sustainability, underscoring the critical role of an effective leadership transition in ensuring intergenerational continuity. These findings contribute to the theoretical understanding of family business succession and offer practical implications for business owners in developing structured and sustainable succession strategies
Co-Authors Hermeindito Hermeindito