Determinants of Family Business Sustainability: Evidence from Indonesian Listed Firms

Herlina Yoka Roida; Eugene Angelica Gunawan

doi:10.24843/MATRIK:JMBK.2026.v20.i02.p01

Authors

Herlina Yoka Roida Universitas Katolik Widya Mandala Surabaya, Surabaya, Indonesia
Eugene Angelica Gunawan Universitas Katolik Widya Mandala Surabaya, Surabaya, Indonesia

DOI:

https://doi.org/10.24843/MATRIK:JMBK.2026.v20.i02.p01

Keywords:

sustainability of family businesses; family ownership; family involvement; family openness.

Abstract

This study aims to investigate the impact of family ownership, family involvement, and family openness on the sustainability of family-owned businesses. The determinant factors are also explored, given the focus on the primary reasons why family businesses fail to survive from one generation to the next. The sample comprised family businesses listed on the Indonesia Stock Exchange from 2018 to 2022, comprising 119 companies and totaling 595 observations. The collected data were analyzed using binary logistic regression (logit). The study results indicate that family ownership, dual family involvement, and family openness can harm the sustainability of family businesses. However, family businesses will be more likely to survive if family members are represented on the Board of Commissioners and as Board Directors. This explains that the increasing concentration of families in the company will threaten the sustainability of family businesses. Moreover, the practical implications of this study are that family business managers must organize and develop strategies to maintain family involvement and control, while also reducing family domination within the company in order to sustain the long run and across generations.

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Author Biography

Eugene Angelica Gunawan, Universitas Katolik Widya Mandala Surabaya, Surabaya, Indonesia

Research Assistant

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