Analysis of Successor Readiness and Family Support on Corporate Performance Through the Leadership Succession Process as an Intervening Variable at Bentani Hotel, Cirebon

Abstract

Effective leadership is closely linked to a sustainable leadership succession process. A well-planned succession process ensures that potential leaders have the knowledge and skills necessary to lead the company in the future. This study aims to analyze the leadership succession process and its impact on corporate performance at Bentani Hotel Cirebon, focusing on the role of Successor Readiness and Family Support. This research employs a quantitative approach and the Structural Equation Model (SEM-PLS) analysis method using SmartPLS 3.0, with questionnaires distributed to Bentani Hotel employees. The sample size is 105 respondents selected through Purposive Sampling. The results show that the leadership succession process is shaped by two key factors: family support and successor readiness. These elements can be viewed through two interconnected perspectives: Family Support (Social Factor) – The success and legitimacy of the succession process largely depend on the collective backing of the family. Successor Readiness (Individual Factor) – The successor’s expertise, skills, and leadership abilities play a crucial role in the transition’s success. By integrating these perspectives, a more comprehensive approach can be established, ensuring a balance between social and individual factors for a seamless leadership transition in family businesses.

Keywords: successor readiness, family support, succession process, corporate performance

DOI: 10.7176/JTHS/68-06

Publication date: March 30^th 2025