The Effect Of Family Association On The Success Of Family Business (Case Study At Surabaya And Surrounding Surrounding Road Stores)

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The Effect of Family Association on the Success of Family Business (Case Study at Surabaya and Surrounding Road Stores)

Introduction

In today's competitive business landscape, family businesses are facing numerous challenges in maintaining their success and sustainability. One of the key factors that contribute to the success of family businesses is the strength of family ties. Family associations play a crucial role in determining the success of family businesses, particularly in the context of clock stores on Jalan Surabaya Medan and its surroundings. This study aims to investigate the effect of family ties on the success of clock store businesses in the area, using a descriptive quantitative method.

Methodology

This study employed a descriptive quantitative method, analyzing the entire clock shop population in the area, totaling 40 stores, using the saturated sampling technique. The research hypothesis was tested using a simple regression analysis with a significance value of 5%. The results showed that family ties have a positive and significant influence on the success of the clock store business in the area.

The Importance of Family Ties

Family ties are essential for the success of clock store businesses on Jalan Surabaya Medan and its surroundings. There are several reasons why family ties can be a determining factor for the success of these businesses:

  • Effective Communication: Close family bonds allow open and honest communication between family members involved in business. This is crucial in resolving conflicts, building trust, and reaching mutual agreement.
  • High Commitment and Dedication: Family members tend to have high commitment and dedication to family business. They are more motivated to work hard and fight together for business progress.
  • Loyalty and Beliefs: Family bonds create a strong sense of trust and loyalty among family members. This is essential in building harmonious relationships in business and minimizing the risk of internal conflict.
  • Managing Risk: Strong family bonds help in dealing with various business risks. Family members support each other and help in dealing with difficulties, thereby increasing business resilience.

Case Study: Main Figure on Jalan Surabaya Medan

This study shows that several clock stores on Jalan Surabaya Medan which have close and strong family ties, show significant success. For example, the "X" clock shop managed by the "Y" family has been established for three generations and has become one of the well-known clock stores in Medan. The success of this clock shop can be attributed to the strong family ties and effective communication among family members.

Conclusion

This research underlines the important role of family bonds in the success of the Jam Shop business on Jalan Surabaya Medan and its surroundings. Strong family ties can be a valuable asset that helps build a tough, successful, and sustainable business. The findings of this study suggest that family businesses on Jalan Surabaya Medan and its surroundings should prioritize strengthening family ties in business.

Recommendation

For the owner of the Jam Shop business on Jalan Surabaya Medan and its surroundings, strengthening family ties in business is essential. Here are some recommendations to strengthen family ties in the business:

  • Open and Honest Communication: Encourage open and honest communication between family members involved in business.
  • Having a Harmonious Relationship: Build a harmonious and mutual respect between family members.
  • Building a Joint Vision and Mission: Determine a clear vision and mission and mutually agreed upon by all family members.
  • Building a Good Management System: Apply a professional and fair management system to minimize internal conflict.

By paying attention and implementing the above recommendations, the clock store business on Jalan Surabaya Medan and its surroundings is expected to achieve greater and sustainable success.

Limitations of the Study

This study has several limitations. Firstly, the study only focused on clock store businesses on Jalan Surabaya Medan and its surroundings, which may not be representative of other family businesses in the area. Secondly, the study used a descriptive quantitative method, which may not capture the complexities of family ties and their impact on business success.

Future Research Directions

Future research should aim to investigate the impact of family ties on the success of family businesses in other contexts. Additionally, researchers should explore the role of other factors, such as leadership style and organizational culture, in determining the success of family businesses.

Conclusion

In conclusion, this study highlights the importance of family ties in the success of clock store businesses on Jalan Surabaya Medan and its surroundings. The findings of this study suggest that family businesses should prioritize strengthening family ties in business. By implementing the recommendations outlined in this study, family businesses can achieve greater and sustainable success.
Frequently Asked Questions (FAQs) about the Effect of Family Association on the Success of Family Business

Q: What is the significance of family ties in the success of family businesses?

A: Family ties play a crucial role in determining the success of family businesses. Strong family bonds can lead to effective communication, high commitment and dedication, loyalty and beliefs, and managing risk, all of which are essential for business success.

Q: How can family businesses on Jalan Surabaya Medan and its surroundings strengthen their family ties?

A: Family businesses can strengthen their family ties by implementing the following recommendations:

  • Encourage open and honest communication between family members involved in business.
  • Build a harmonious and mutual respect between family members.
  • Determine a clear vision and mission and mutually agreed upon by all family members.
  • Apply a professional and fair management system to minimize internal conflict.

Q: What are the benefits of having a strong family bond in a family business?

A: A strong family bond can lead to several benefits, including:

  • Effective communication and conflict resolution
  • High commitment and dedication to the business
  • Loyalty and trust among family members
  • Managing risk and increasing business resilience

Q: Can family businesses on Jalan Surabaya Medan and its surroundings achieve success without strong family ties?

A: While it is possible for family businesses to achieve success without strong family ties, it is more challenging and may lead to internal conflicts and decreased business resilience.

Q: How can family businesses measure the effectiveness of their family ties?

A: Family businesses can measure the effectiveness of their family ties by:

  • Conducting regular family meetings and open communication
  • Evaluating the level of commitment and dedication among family members
  • Assessing the level of loyalty and trust among family members
  • Monitoring the level of conflict and internal disputes

Q: What are the limitations of this study?

A: This study has several limitations, including:

  • The study only focused on clock store businesses on Jalan Surabaya Medan and its surroundings, which may not be representative of other family businesses in the area.
  • The study used a descriptive quantitative method, which may not capture the complexities of family ties and their impact on business success.

Q: What are the future research directions for this study?

A: Future research should aim to investigate the impact of family ties on the success of family businesses in other contexts. Additionally, researchers should explore the role of other factors, such as leadership style and organizational culture, in determining the success of family businesses.

Q: How can family businesses on Jalan Surabaya Medan and its surroundings apply the findings of this study to their business?

A: Family businesses can apply the findings of this study by:

  • Prioritizing the strengthening of family ties in business
  • Implementing the recommendations outlined in this study
  • Conducting regular family meetings and open communication
  • Evaluating the level of commitment and dedication among family members
  • Assessing the level of loyalty and trust among family members

By applying the findings of this study, family businesses on Jalan Surabaya Medan and its surroundings can achieve greater and sustainable success.