Does Family Longevity Goals Moderates Family Involvement Towards Business Performance?: A Case of Bandung Family Firms

摘要

Indonesia's family businesses have always had an important role to the stability and growth of the economy. Family involvement in the management of family firms is deemed as one of the key differentiators to non-family businesses. With such family involvements, family firms require trust and commitment to ensure the family's longevity and prosperity. However, such dynamics may have an influence on family firm performance. Previous studies have shown inconsistencies regarding how family involvement in management would influence firm's performance, all showing possible positive, negative, and to no significant influence. Therefore, this study seeks to gain some clarity on the influence of family involvement with family longevity goals towards family firm performance. The study includes 200 respondents, all involved within the management of family firms, located in Bandung, one of the family firm populated cities in Indonesia. The study uses quantitative methods, where data is analyzed for reliability and validity using SEM. The result of the study shows that there is no significant influence between family involvement in management to firm performance. However, when family involvement in management is in line with the family longevity goals, there is significant positive influence on firm's performance. This study seeks to contribute to Indonesia's family firm management by aligning family involvement to ensure the achievement of positive family firm performance.