The family business has an important role in contributing to the economy and employment in a country. However, research related to gender issues in the family business ownership and management is still limited. This study aims to explore and present the latest trends in the entrepreneurial sector, especially the characteristics differences of gender-based in the family business. This paper presents a comparative analysis based on the gender characteristics in the management of the family business. This study used the qualitative descriptive method with case study approach. A qualitative method was used to explore the conditions that occur through depth interviews with some family businesses in Indonesia. A total of 10 respondents participated in this study. This study is expected in an effort to open access to gender equality in various fields, especially for women in the management of the family business. This finding is trying to fill the gaps related to gender issues on family business, entrepreneurship, and management in general.

Family business is one form of entrepreneurial activity. Entrepreneurship is considered a sector that is dominated by men (Brush, 1992). Gender-based entrepreneurship has received increased attention from researchers in recent years (Byrne & Fayolle, 2013; Kariv, 2013; Minniti et al, 2005; Ramadani et al, 2013; Welter, 2004; Welter & Smallbone, 2010). Family companies contributing to the economic progress in the countries of the world including Indonesia. In the United States, 24 million family businesses are able to absorb 62% of the workforce and contributes 64% to GDP. Family companies in Indonesia has a strategic contribution to the Indonesian economy. 95% of companies in Indonesia owned by a family with a turnover of about USD 5-10 million, and total assets reached USD 134 billion, or 25% of Indonesia’s GDP (PWC 2014).

One of the main problems of the family company is its ability to prepare and ensure cross-generational family leadership skills (Le Breton-Miller et al.,2004; Levitt, 2005). Succession planning is a long-term activity in order to prepare the next generation of companies. Dunemann & Barrett (2004) defined succession planning as a transitional management or control of business. According to Berchelman (2005), although the succession planning has been recognized as an important process for long-term success, most companies have not set up because of hope the right people will be available when needed. Meanwhile, according to Cantor (2005) added that succession planning should be part of the overall planning process, which begins with strategic planning and assessment of the resources needed. The most bias today is the problem of gender. Not many studies that discuss about gender, especially in the family company.

Several previous studies had found the dilemma in choosing the next generation based on gender. According Tatoglu et al. (2008), the majority of family companies in Turkey chose a boy as successor. Several previous studies have also found that it would be a successor in a family business is the eldest son (Fox et al., 1996; Wahjono, 2010). Family company in the US and Korea also showed that the man regarded as the ideal figure to continue the family business. Unlike the case with family companies in Japan, although the role of women has been rejected, but not a few women who become leaders in family businesses in the country (Kaslow, 2006; Wahjono, 2010). There is a strong perception that the communities are more like men than women in business (Prasso, 1996; Wahjono 2010). Based on studies conducted Rosenblatt et al. (1985), the women offspring in the family did not receive encouragement, opportunity, and education are the same as male offspring, thereby preventing women from displacement position towards executive positions in the family business. Although against the current gender mainstreaming, research Kuratko et al. (1993) also found evidence that the man regarded as the ideal figure to continue in business. Another argument raised gender component has a role in the family business, the results of studies Organization for Economy Co-operation and Development (OECD) in 1993, which stated that entrepreneurship assumes the existence of gender neutrality strong, thus diluting the idea that gender historically may provide support for the creation and expansion of a business in developed countries.

The phenomenon of gender in the family business is an interesting research study to be explored further. Based on research Lerner et al. (1997), found that the motivation and goals (achievement, economic need, and independence) of female entrepreneurs have a significant effect on business performance. Thus, this study tries to fill the gap that occurs with further analyze gender roles in the family company. This study aims to explore and present the latest trends in the entrepreneurial sector, especially family business performance based on gender characteristics. This paper presents a comparative analysis based on the characteristics of gender in the management of the family business. Qualitative approach carried out in research by conducting in-depth interviews with some family business in Indonesia to gain a broader understanding.

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APA Style

Anggadwita, G., Ayuningtyas, H. G., Alamanda, D. T., & Oktapiani, N. (2017). Characteristics Differences of Gender-Based: Case of Family Business in Indonesia. Review of Integrative Business & Economics Research.

IEEE Style

[1] G. Anggadwita, H. G. Ayuningtyas, D. T. Alamanda and N. Oktapiani, “Characteristics Differences of Gender-Based: Case of Family Business in Indonesia,” Review of Integrative Business & Economics Research, 2017.

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