A business transformation model to enhance the sustainability of small-sized family businesses


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Business transformation is essential to making the small-sized family business more sustainable. Technological and environmental changes have radically transformed the way of doing business. Business transformation into digital business is the key to success in these conditions. On the other hand, some of the previous studies of business transformation in several countries and industries show different empirical evidence. This study analyzes the transformation process in a small-sized family business. This is a case study of 15 small-sized family businesses with four different types of industry, with an interview and observation period of 12 months in 2019–2020. This study has formulated a business transformation model for a small-sized family business and presented the results of the transformation process carried out. The research results indicate that a business transformation model consists of several attributes and sub-attributes. Business transformation results indicate different processes and times between companies. In general, the transformation process can be grouped into the exploration, learning, and synchronizing stages. The industry with the fastest transformation process is the hospitality industry, while the manufacturing process for the industry takes a bit longer. The results of this study indicate that business transformation has improved the sustainability of a small-sized family business that is characterized by its ability to adapt to changing technology and environmental conditions.

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    • Figure 1. Family business transformation model
    • Figure 2. Small-sized family business transformation periods
    • Table 1. Case study interviewees
    • Table 2. Attributes and sub-attributes in a transformation business model
    • Conceptualization
      Anita Wijayanti
    • Formal Analysis
      Anita Wijayanti
    • Funding acquisition
      Anita Wijayanti, Massila Kamalrudin, Safiah Sidek
    • Methodology
      Anita Wijayanti
    • Resources
      Anita Wijayanti
    • Writing – original draft
      Anita Wijayanti
    • Writing – review & editing
      Anita Wijayanti, Kartika Hendra Titisari
    • Investigation
      Massila Kamalrudin, Safiah Sidek
    • Validation
      Massila Kamalrudin, Safiah Sidek
    • Data curation
      Kartika Hendra Titisari
    • Project administration
      Kartika Hendra Titisari