Competitive Advantage of Family Business and the Barriers: Evidence from Indonesia SME’s

The growth of family business in Indonesia is higher than the global average, but some family businesses are still struggling to survive in the market. The phenomenon of this research is the sign of decline Bintang Lima as a study research and observation, a family business in Indonesia, is showing and the owner’s incrimination on the country’s economic slowdown. This research paper is written to analyze the factors that enabled Bintang Lima, as one of Indonesia typically family business, to survive for more than sixteen years and the barriers that diminishes these competitive advantages which caused the business to be slowing down the past few years. The data in this single case qualitative research is gathered mainly through interviews with seven respondents which includes one of the owners, four employees, and two loyal customers. As a result, it is found that product quality, post purchase service, customization, reputation, and other factors contribute to the competitive advantage of Indonesia Family Business. Furthermore, factors like receivables, technological advancement, human resource, supply chain, and other factors diminish Indonesia Family Business’competitive advantage. The outcome of this research study is a mini-theory that points attention to this case study of Indonesia SME’s in category of family business.