Owners’ integrity, customers’ relation, and focused attitude as strategiies of family business sustainability and growth: an empirical study

John Tampil Purba, Jacob Donald Tan


Asian Development Bank Institute reported that the contribution of Micro, Small and Medium Enterprises (MSMEs) to the Indonesian GDP is 57.8% and the contribution to total employment is 97.2%. MSMEs in Indonesia are almost owned by families. According to Family Firm Institute in 2016, 72% of all businesses in Indonesia’s private sector are run by family businesses, and while most of the MSMEs started out as family businesses, many successful entrepreneurs come from family business background.  This empirical study is based on 3 family business cases that have been expanding in terms of its sales and operations throughout more than 10 years. The method used in this study is qualitative research by exploring the strategic management to sustain the family businesses through owners’ integrity, customers’ relations, and focused attitude in their vocations.  As the family businesses are currently in transition of passing the torch to the next generation, their sustaining strategies have to be extended.


Family business; integrity, strategis; competitive advantage

Full Text:



Anderson, E. W., & Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Service research, 3(2), 107-120.

Brice, W. D., & Jones, W. D. (2008). The Cultural Foundations of Family Business Management: Evidence from Ukraine. Eurasian Journal of Business and Economics, 1(1), 3-23.

Buchholz, R. A., & Rosenthal, S. B. (2005). The spirit of entrepreneurship and the qualities of moral decision making: Toward a unifying framework. Journal of Business Ethics, 60(3), 307-315.

Butarbutar, F. & Purba, J. T. (2015) Towards Educational Great and Strong Leaders: An Empirical Investigation at the Seventh-Day Adventist Schools in Indonesia. Jurnal Akuntasi dan Manajemen. Vol.II No.5. STIE Surya Nusanatara.

Carpenters & Sanders (2009). Strategic Management (2nd ed.). Pearson International Edition.

Covin, J. G., & Slevin, D. P. (2001). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice. USA: Baylor University.

Creswell, J. W. (2007). Qualitative enquiry and research design: Choosing among five approaches.

Cripe, E., & Mansfield, R. S. (2001). The Value-Added Employee (2nd Ed.). Houston: Gulf Pub.

Drucker, P. F. (2000). Knowledge management. Harvard Business Review, 56(2), pp.12– 20.

Family Firm Institute, Inc. Retrieved from http://www.ffi.org/?page=globaldatapoints

Gaikindo (2015). Retrieved from http://www.indonesiainvestments.com/news/ todays-headlines/car-sales-indonesia-june-2015-higher-and-yet-wer/item5736

Glassop, Linda and Waddel, D.(2005. Managing the Family Business. Heidelberg: Heidelberg Press.

Hax, A.C., & Majluf, N. S. (1991). The Strategy Concept and Process: A Pragmatic Approach, Englewood Cliffs, NJ: Prentice Hall.

Hooley, Piercy, and Nicoulaud (2008). Marketing Strategy Competitive Positioning ( 4th Ed), Prentice Hall Europe.

Ihalauw, John JOI (2008). Konstruksi Teori: Komponen dan Proses. Jakarta: PT Gramedia Widiasarana Indonesia.

Ihalauw, John JOI (2011). Dari Realitas Menuju Konstruksi Model: Contoh Penelitian Kualitatif Menggunakan Desain Case Study tentang Strategi Mempertahankan Posisi Pasar. Tangerang: Universitas Pelita Harapan.

Jones, S., Cohen, M. B., & Coppola, V. V. (1988). The Coopers & Lybrand guide to growing your business. John Wiley & Sons.

Jonker, J. & Pennink, B. (2010). The Essence of Research Methodology, Springer- Verlag Berlin Heidelberg.

Kotler & Keller (2012). Marketing Management (14th Ed.) Prentice Hall. Eaglewood Cliffs, New Jesey, Prentice Hall.

Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook. Sage.

Mittal, V., & Katrichis, J. M. (2000). Distinctions between new and loyal customers. Marketing Research, 12(1), 26.

Japhta, R. et al. (2016). Women-owned SMEs in Indonesia: A Golden Opportunity for Local Financial Institutions. Market Research Study. IFC,East Asia and the Pacific.

OECD, (2015). Corporate Governance and Business Intergrity. A Stocktaking of Corporate Practices.

Purba, J.T.(2015). Strategic Innovation through Technology Readiness and Acceptance in Implementing ICT for Corporate Sustainability. Proceeding. International Symposium and Management in Makassar, March 2015.

Purba, J.T. (2015). Enhancing Competitiveness in Business through Entrepreneural Management Education as a Strategy in Facing Regional Opportunities and Challenges. Prosiding. Seminar Nasional Forum Manajemen Indonesia 6 [FMI6] di Medan Sumatera Utara.

Purba, J. T. (2014). “Pengukuran Kualitas Layanan Unit Kerja Teknologi Informasi Menuju Strategi Tata Kelola Organisasi” : Studi Kasus. Prosiding. Seminar Nasional & Call Paper. Economic Globalization: Trend and Risk for Developing Country, 22-24 Mei 2014 di Hotel BTC Bandung, West Java, Indonesia

Purba, J. T. (2015). Strategic Innovation Through Technology Readiness and Acceptance in Implementing ICT for Corporate Sustainability. Proceeding. Presented in the 12th International Annual Symposium on Management, on March 2015 in Makasar, Sulawesi.

Saleem, S. S., Moosa, K., Imam, A., & Khan, R. A. (2017). Service Quality and Student Satis-faction : The Moderating Role of University Culture , Reputation and Price in Education Sector of Pakistan. Iranian Journal of Management Studies, 10(1), 237–258. Retrieved from https://doi.org/10.22059/ijms.2017.217335.672304.

Schendel, D., & Hofer, C. (1979). Strategic Management: A New View of Business Policy and Planning. Boston: MA: Little, Brown.

Schiffman, L.G. & Wisenblit, J.L. (2015). Consumer Behavior, Pearson Education Limited.

Smith, S. L., & Underwood, J. (2002). Thriving in E-Chaos: Corporate Strategy for Uncertain Times. iUniverse.

Stake, R.E. (1995). The Art of Case Study Research. London: Sage Publications.

Strauss, A.L. & Corbin, J. (1990). Basics of qualitative research; grounded theory procedures and techniques. London: SAGE.

Susanto, A. B. & Susanto, P. (2013). The Dragon Network: Inside Stories of the Most Successful Chinese Family Businesses. Singapore: John Wiley & Sons, Singapore Pte. Ltd.

Sutarwi (2008). Kebijakan Pengelolaan Sumber Daya Air Danau dan Peran Kelembagaan Informal. Salatiga: Program Pascasarjana Studi Pembangunan, Universitas Kristen Satya Wacana.

Tracy, S. J. (2013). Qualitative research methods. UK: Wiley-Blackwell.

Walgito, B. (1990). Psikologi Sosial Suatu Pengantar. Yogyakarta: Yayasan Penerbit Fakultas Psikologi UGM.

Ward, John L. (1997). Growing the Family Business: Special Challenges and Best Practices.Family Business Review, 10(4), 323-337. doi: 10.1111/j.1741- 6248.1997.00323.x

Ward, J. (1987). Keeping the family business healthy. San Francisco, CA: Jossey-Bass.

Yin, R.K. (2003). Case study research: Design and methods (3rd Ed.). Thousand Oaks, CA: SAGE Publications.

DOI: http://dx.doi.org/10.14414/jebav.v21i2.1433


  • There are currently no refbacks.

Copyright (c) 2018 Journal of Economics, Business & Accountancy Ventura

Abstracting & Indexing


Hasil gambar untuk ccbyncsa

Copyright @ 2010 Pusat Penelitian dan Pengabdian Masyarakat Sekolah Tinggi Ilmu Ekonomi (PPPM STIE)