Purpose - The research intended to explore the Innovation Challenges during Succession Process in Indonesian family SMEs.
Design/methodology/approach This study used qualitative approach with multiple case
studies. In-depth interview conducted to 23 participants from 12 Indonesian family SMEs. Semi-structured interviews were conducted with the predecessor and the successor of the company. Triangulation technique and member checking were used in this research to ensure validity. The data were analyzed using content analysis method,
Findings The findings indicate that Indonesian family SMEs should overcome five innovation challenges that arise from the relationship between predecessor and successor. The challenges are: 1) the knowledge gap between predecessor and successor, 2) Tacit Knowledge, 3) Limited resources, 4) Stickiness to old tradition in the family, 5) Authority Bias.
Research Limitation/ implication - This research explored the innovation challenges based
on the interaction of predecessor and successor in the company. In the future, it would be interesting to explore the innovation challenges by considering external stakeholder and also other family member. It is also interesting to explore the external innovation challenges from Indonesian Family SMEs.
Originality/value This paper identified the innovation challenges that occur in the succession dynamic in the Indonesian Family SMEs.