THE LOCAL FAMILY BUSINESS PERFORMANCE: EXPLAINING THE ROLE OF DYNAMIC CAPABILITIES ON LOCAL FAMILY BUSINESS PERFORMANCE IN INDONESIA

Abstract

The role of dynamic capabilities in family businesses has become an important dimension in achieving the performance of family business. This primary purpose of this article  to analyze and explaining the role of dynamic capabilities towards the performance of local family business in Indonesia. The population of research was employees of the Bosowa Corporation in Makassar City, Indonesia. Quantitative approach  used in this study and the type of research was surveyed exploratory. The data were gained through questionnaires and the analysis data using SPSS and AMOS windows version 25. Structural equation modelling was applied to analyze data, and three hypotheses are proposed. The resulting research  showed that all exogenous variables of dynamic capabilities significantly effect  the performance of family business. The theoretical model was proposed to be used for future discussions.