FACTORS CONTRIBUTING ONLINE FAMILY BUSINESS TO ENHANCE THE SUSTAINABILITY OF FAMILY BUSINESS
Anita Wijayanti
Lecturer, Department Of Accounting, Islam Batik University, Surakarta, Indonesia Massila binti Kamalrudin
Associate Professor, Institute Technology Management and Entrepreneurship, University Technical Malaysia Melaka
Safiah Sidek
Associate Professor, Institute Technology Management and Entrepreneurship, University Technical Malaysia Melaka
Abstract
Business has changed radically. Sustainability of family business has impact on Indonesian economy.
Sustainability can be achieved by the more professional business with more being innovation. The family business is a unique type of company. To be professional and innovative business, family business needs to develop an online business. The previous research did not identify any specific definition online business for family business. The technology of online business is very rapidly as a new standard, tool, and protocol. It is a new business model for family business. There is a research gap on this paper. The objective of this paper is to analyzed factors that contribute to the online business for family business (online family business) through systematic literature review. Indicators that fit the characteristics of the family business are: 1) strategy (goal setting, strategy, value proposition). 2) Business process/model (selling, buying, paying and accounting) and 3) Tools (website). We argue that the indicators found in this literature review will be contributing factors for family business online to enhance the sustainability of family business.
Keywords: business, online business, online family business.
Introduction
Business has changed radically. The change of information technology has changed the nature of business (John 2013). The Internet has an important role in business change. Thus, this condition affects the sustainability of the family business.
The family business survey explained that 95% of companies in Indonesia are family companies.
Their total wealth reached 134 trillion rupiahs or accounted for about 25 present of Indonesia's gross domestic product (GDP) (Business 2012). The survey explained that family business in Indonesia has seen stronger growth than the global average and very bullish about future growth. (Family business survey 2014 Findings for Indonesia 2014). Therefore, sustainability of family business has impact on Indonesian economy.
Sustainability can be achieved by the more professional business with more being innovation.
Nevertheless, the family business is a unique type of company. Various problems to be professional and innovative business that appear in family business (Erik et al. 2015; Kapurubandara 2004; Putra and Hasibuan 2015, n.d.). Therefore, to be professional and innovative business, family business needs to develop an online business (Dunemann and Barrett 2004; Siakas et al. 2014; Studies et al.
2017)(Mej 2018; Putra and Hasibuan 2015, n.d.).
Previous research explains various definitions of online business. Online business is an integral practice planning action to get the market with a series of strategies by using e-business tools as an effort to achieve company goals (Mej 2018), Online business is a set of tools that can improve the efficiency of the company's operations to be more efficient and competitive in the global market.
(Putra and Hasibuan 2015), Online business is a strategic process with e-business tools to achieve goal setting that aligns with the company's vision and mission, all of which transfer value propositions
to customers with performance monitoring and profitability (Mej 2018). Online business is an electronic process include buying and selling product, supplies and service, customer servicing, processing payment, managing production control, collaborating with the business partner, information sharing, running automated employ service (Shi et al. 2015). The previous research did not identify any specific definition online business for family business.
The technology of online business is very rapidly as a new standard, tool, and protocol. In fact, for the family business in Indonesia, it is a new business model. There is a clear research gap on this paper.
There is a visible research gap to investigate by analyzing various literature reviews. Therefore, the objective of this paper is to asses systematic literature review factors contribute to the online business for family business (online family business).
The paper is organized ad follow; section 2 describes the method how the study is conducted, and this is followed by section 3, describe the result and discussion drawn from the study and we conclude the study in section 4.
Methodology
This study has been undertaken as a systematic literature review based on a guideline as proposes by Kitchenham [11]. The guidelines follow in figure 1
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Figure 1
Systematic Literature Review (Kitchenham n.d.)(Brereton et al. 2007)
Phase 1, this phase help in developing an asses of the review concept and overall methodology. The research question listed below resulting from the understanding of the key point after the study of literature. Research question in this paper is what the factors contributing to online family business?
Develop review protocol is very rigorous and also iterative. Its covers the overall plan for the systematic literature reviews and validates it.
Phase 2, the empirical studies ware search by using a search engine like Google Scholar, Emerald Insight, IEEE Explore and ACM Digital Library. The studies were analyzed and screened for the keyword used “factor online business”/ “online family business” with the search field is title, abstract and full text. The next step is focusing on finding the most suitable article for this review. The article must be eliminated based on some criteria, that are 1) the abstract of this article is relevant to review research question, 2) The article is written in English, 3) The article is within time 10 year, 4) the article publishes and available fully online in renown journal/database.
As the initial search based on the keyword factors online business and factors online family business has resulted in 40500 papers. By examining the title and abstract of the primary identified studies, we had excluded most of the paper due to the irrelevant topic found in the studies. Irrelevant studies will be rejected at this stage and on the hand; the relevant studies will be examined further. Out of 20 papers, there are 8 papers found similar to our content of reviewing. There are similar is in i) the objective, ii) methodology of the studies and iii) the result presented.
Table 1
The Similar Article Related to the Content of Review
The extracted data ware carefully studied to filter and distil possible overlap. The synthesized data yields factors contributing to online family business.
Result and Discussion
The results of the paper analysis found several factors contributing to the online family business.
These factors can be grouped into three variables: strategy, business process/model and tools.
Table 2
Online Business Variable
Author Objective Methodology Result
(Mej 2017) √ √ √
(Putra and Hasibuan n.d.) √ √
(Mej 2018) √ √
(Rezaei, Kian, and Peck
2014) √ √ √
(Social Media-Based Value Creation and Business
Models 2018)
√ √
(Scientific and Economics
2015) √ √ √
(Vargas-hernández 2016) √ √ √
(Durbhakula, Kim, and
Kim 2011) √ √
Author
(year) Variable
Strategy Business Process/ model Tools
(Mej 2017) Planning Market Strategy Tactic Goal setting
e-business tools e-media e-marketing e-commerce
(Putra and Hasibuan
n.d.)
Value chain capability
(Mej 2018) Market strategy e-commerce e-media (internet)
e-marketing (Rezaei,
Kian, and Peck 2014)
Buying Selling e-payment
Managing production control Employ services
Thus, the analysis of online business variables finds several online business indicators. The indicator is adjusted to the characteristics of the family business. Therefore, several indicators can be found from online family business.
Table 3
Online Family Business Indicator
Indicator of online family business will be explained below:
1. Online family business strategy. The formation of strategies undertaken in this research will use the 7s Model in e-Transformation (Putra and Hasibuan n.d.) which has been adopted for the case for online community business development for family business in Indonesia.
(Social Media- Based Value Creation and Business
Models 2018)
Goal setting
Value proposition Business functional
Electronic market Infrastructure
(Scientific and Economics
2015)
Enterprise resources planning
system E-commerce
Supply chain management
(Vargas- hernández
2016)
Website Search engine Security (Durbhakula
, Kim, and Kim 2011)
Strategy
Business decision Enterprise resources planning
Product innovation Supply chain Marketing channel Human resources
Knowledge management E-image
Variable Of Online
Family Business Indicator Description
Strategy Goal setting An aim or objective that the company would like archive
Strategy A plant and policy design to achieve a major or overall aim
Value Proporation A business statement that the customer should join the online community business
Business Process Selling Sale of good or service
Buying Buy of good or service
Paying Pay of good or service
Accounting Recording transakstion
Tools Web site A location connected to internet on the World Wide
Web
Table 4
Stage Formulated Online Family Business Strategy
2. Online family business process will be described by a business model. Business model is a design for the successful process operation of a business (Selling, buying, paying), identifying revenue sources, customer base, products, and details of financing (accounting). The concept of business model became popular in the 1990s and over when business models and business environment changes were discussed in the Internet context (Osterwalder, Pigneur, and Tucci 2005). In recent years, the e-business model please mention in table 4
Table 5
Theory of Business Model
The business model from Osterwelder and Pigneur (Osterwalder, Pigneur, and Tucci 2005) will used to develop business model of online family business. The theory is developed based on a conceptual model oriented to the development of information comminacation technology. This model is developed based the case on online business company. The theory is more concrete and applicable.
Stage Significant Activity
Environmental analysis To understand the online community
business environment P o r t e r ’s F o r c e s ( S W O T analysis)
Online community business
goals Develop business goals & strategies to
gain sustainability Develop online community business goals
Online community business
transformation road map To develop a specific path to proceed
for the family business e-Transformation road map for family business
e-transfer family business
methodology e-transform design for family business The evolutionary e-trans design for family business
Online community business Develop online community business website and model business of online community business
Support & maintenance online community business model
Evaluation Management on the online community
business Mc Kensey’s 7S Model for
Organizational Change
Author (year) Online Community Business Model
(Osterwalder
2002) Canvas business model (Osterwalder,
Pigneur, and Tucci 2005)
Ontology business model
(Pfisterer, Radonjic-simic,
and Reichwald 2016)
Distributor market spaces (DMS)
(Wolf and
Troxler 2016) Community business model: participation, direct sale, 3D printer, customizing prototype, research & education activities
(Mej 2018) Variable of e-business model: Operation & Maintenance and Key performance indicator (Putra and
Hasibuan n.d.) E-business triangle model for services: production, marketing, sales (Putra and
Hasibuan 2015) e-business triangle model
This theory explains that a business model is a conceptual tool consisting of a group of elements and elements of a company's business.
!
Figure 2
Business Model (Osterwalder 2002)
3. Online family business tools. A website is the online family business tools. In this research, we need to understand how the implementation of online family business.
In the process of applying online family business there are four stages: 1) This stage is called presence, the firm used e-mail to communicate with external and internal parties, 2) This stage is called "portal", the company develop a simple website with certain characteristics but not integrated with other applications, used as portals for entry into the business via the Internet, 3) This stage is called "transaction integration" This stage of SMEs processes integrated enterprise integration, emphasizes high-level collaboration and integration with other application that requires integration of process.(Putra and Hasibuan n.d.). Website development is an important step for a family business to build an online community business. The website will be built will include: sharing (voluntary, photo, video, stories), relationship, group, status, content, conversation (Pereira, Baranauskas, and Roberto 2010). We argue that the indicators found in this literature review will be contributing factors for family business online to enhance the sustainability of family business.
Conclusion
The objective of this paper is to analyze factors that contribute to the online business for family business (online family business) through systematic literature review. The systematic literature review used in this paper. The results of the paper analysis found several factors contributing to the online family business. Indicators that fit the characteristics of the family business are: 1) strategy (goal setting, strategy, value proporation). The formation of strategies undertaken in this research will use the 7s model in e-transformation, which has been adopted for the case for online community business development for family business in Indonesia, 2) business process/model (selling, buying, paying and accounting). Online family business process will be described by business model. The business model is a design for the successful process operation of a business (selling, buying, paying), identifying revenue sources, customer base, products, and details of financing (accounting) and 3) tools (website), a website is the tools to development of online family business.
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