THE EFFECT OF MATRIARCHAT CULTURE, MENTOR PROCESSING, AND DEVELOPMENT PROGRAM ON FIRM PERFORMANCE OF FAMILY BUSINESS SUCCESSION IN MINANGKABAU WEST SUMATERA-INDONESIA

Abstract

FB is the type of business that is the most compared to the other type of business. Compared to all existing businesses, the percentage of business families in Indonesia is 96%. This study aims to examine the effect of Matriarchat Culture (MC), Mentor Processing (MP), and Development Program (DP) variables on Firm Performance (FP) of family business succession (FBS) in Minangkabau West Sumatera-Indonesia. MC, MP, and DP are independent variable that group in to Process-succession, because done before succession. The method of this study is quantitative method. The number of sample is 146. Location of sample are Kota Padang, Bukittinggi and Payakumbuh. The respondent of this study are Family Business (FB) in Minangkabau (West Sumatera) that are at second generation, third and next generation in West Sumatera Indonesia. Analysis technics use SEM-PLS version 3. The finding in this study shows that the MC, MP and DP affect on FP significantly. The contribution of this study related the matriarchat culture in Minangkabau (West Sumatera-Indonesia). Matriarchat culture in Minangkabau West Sumatera is a unique culture that only use in West Sumatersa Indonesia. All research independent variables (3) significantly influence the success of the FBS. The results of this study show the factors MC, MP and DP effected on FP. It indicated that this model can be used to FB in Minangkabau to plan the succession of FB.