THE IMPACT OF FAMILY INTERNAL CONFLICT TOWARDS FAMILY BUSINESS DEVELOPMENT (CASE STUDY OF PEMANDIAN AIR PANAS CIPANAS – CILEUNGSING)

• Main Author: Ronasih, Ona
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/69548
• Institution: Institut Teknologi Bandung

The phenomenon of family business shows a significant influence on the business development of a country including Indonesia. In addition to the results of a survey conducted by KPMG through the European Family Business Trends, almost 80% - 98% of companies in the world are controlled by family companies, 70% of its companies are located in Asia - Pacific where 85% of these companies are family businesses. According to Kompasiana (2002), 90% of entrepreneurs in Indonesia are executives running a family business. This is shown by the report of the Central Bureau of Statistics 2007, which states that as many as 159,000 of 165,000 companies in Indonesia is a family business that at least contribute 82.44% to Gross Domestic Product. Despite these facts, APIndonesia (2009) states that in fact most of the family businesses do not have longevity caused by transitions between generations that are not working properly where about 70% of family companies fail in the second generation. In the family business Pemandian Air Panas, Cipanas - Cileungsing this transition failure occurs when a designated successor cannot manage the business well, causing other conflicts among family members. Therefore, this study was conducted to analyze the impact of internal family conflicts on the development of the family business itself and find solutions to the problem. This research uses descriptive qualitative method by focusing on coding data obtained from interview and observation. Interviews were used to obtain original data from sources directly related to the problem while observations were made to obtain additional information based on what the researcher got during researching in the field. Furthermore, coding is done by processing the interview transcript data into codes in the form of short words or phrases but able to highlight the message to be conveyed, the researchers then give each criteria and categories to the codes. The results of this study indicate that the family internal conflict that occurred in the family business Pemandian Air Panas, Cipanas - Cileungsing turned out to cause some big problems that affect the business development. First is the limited capital owned by the company caused by the use of corporate income for the benefit of family members, second is the facility that did not develop for the last five years, third system of employee recruitment and fourth is the unprofessionalism of corporate leaders in making decisions.