Abstract:
Purpose – The family business is one of the business entities that contribute to the economy of a country.
Succession in the family business occupies a strategic position, especially in maintaining the company’s
sustainability. The Chinese family business has unique characteristics in maintaining and growing its
business with the cultural values that underlie how their business. The purpose of this paper is to discuss the
cultural values of Chinese ethnic and their implications in the succession process in small family businesses in
Bandung, Indonesia.
Design/methodology/approach – This research uses a qualitative method with the in-depth interview
method as a data collection technique. The sampling technique uses purposive sampling, while to test the
validity of research data using a triangulation technique. A total of four small Chinese-owned family
businesses participated as informants in this study. The study will identify the stage of succession process in
the Chinese family business.
Findings – There are several stages identified in the succession planning of small Chinese-owned family
business in Bandung which include succession antecedents, succession activities and desired outcomes. The
results showed that small Chinese-owned family business in Bandung has not applied the rules and
procedures in the succession process. Most of the Chinese family business in this research still holds
Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather
than successor with other gender.
Practical implications – Several implications are discussed. One of them is the Chinese family business
holding cultural values in the process of family business succession.
Originality/value – This research is expected to provide theoretical and practical implications for
academics and family companies with similar cases.