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Family Firm Responses in Indonesia

Author

Listed:
  • Marleen Dieleman

    (corresponding author National University of Singapore 1 Business Link, Singapore 117592)

  • Peter Post

    (Netherlands Institute of War Documentation Herengracht 380, 1506 RC Amsterdam, The Netherlands)

Abstract

We investigate organizational change in family firms under conditions away from equilibrium, and look at family firm strategy in the face of external shocks. To better understand how organizations behave under such conditions, we carried out two longitudinal studies of family firms in Indonesia, in which we investigate the effects of violent regime change on family business strategy. Interpreting our results within the framework of punctuated equilibrium, we explicate 1) the positive effect of social capital on family firm governance during periods of equilibrium and its negative effects during periods of regime change; and 2) internal factors facilitating or impeding survival in the face of regime change such as generational change in leadership and alignment with new regime ideology. Our results show that internal factors are interdependent with external conditions, but both matter for survival or demise.

Suggested Citation

  • Marleen Dieleman & Peter Post, 2009. "Family Firm Responses in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 57, pages 25-46, April.
    • Handle: RePEc:lpe:efijnl:200902
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    More about this item

    Keywords

    Change; Punctuated Equilibrium; Family firms; Emerging Markets;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D1 - Microeconomics - - Household Behavior

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