Determinants of woodcraft family business success

Abstract

The woodcraft industry has been developing in Bali for more than half a century in the form of family business (SMEs) which is currently managed by the third generation or the transition from the second to the third generation, where this phase is the climax of the family business. Apart from contributing to tourism, this craft business also has cultural values. Moreover, the tourism situation and macroeconomic shocks have had an impact on business conditions. This research aims to analyze the performance of a woodcraft family business based on a family and financial approach, through a two by two matrix analysis as well as to analyze the determining factors of willingness to succession of woodcraft family business in Bali, with MICMAC analysis. The results show that the performance of the family business in this case is high emotional but low financial capital. There are 18 identified factors related to the willingness to succeed in the woodcraft family business, and the most influential factor (existing and forecasting) is the participative leadership style, while the most dependent is personal interest which is the involvement of the successor from an early age in family business activities.