Balanced Scorecard and Succession in Family Business

Abstract

This study analyses the long-term sustainability capability of a family business through a qualitative approach that integrates a Balanced Scorecard framework and succession theory. A case study on PT. ABC compares organizational performance under first generation and second generation to evaluate the influence of succession on business continuity. The findings indicate that implementing a structured, merit-based approach for selecting and developing future leaders leads to a significant improvement in company’s performance. Moreover, second generation made significant progress by implementing changes that positively influence company’s overall performance. Findings on this study contribute to existing literature by highlighting the significance of comprehensive succession planning and competency development in promoting sustainable longevity of family business.