Endrik Andika 

Bussiness Department, Faculty of Social and Political Sciences, University of Mulawarman, Samarinda, East Kalimantan, Indonesia 

DOI: 

ABSTRACT 

This study aims to determine the role of generational succession in SMEs family businesses, further this study analyzes social capital and business motivation to the performance of SMEs with family business backgrounds. The type of research is quantitative with the population of SMEs in East Java Province, this study uses simple proportional random sampling techniques. The research sample amounted to 124 SMEs with a family business background. Data analysis techniques using Partial Least Square (PLS). The results showed that social capital has a positive and significant effect on Business Motivation, then Business motivation has a positive and significant effect on Business Performance. In addition, succession between generations as moderation shows results that have a significant negative effect on business motivation and business performance. This study has limitations, namely the low response rate of SMEs with a family business background. The contribution of this research is as one of the family business studies that take a quantitative research approach, because previously many studies on family businesses were carried out with a qualitative approach                             

Keywords: Social Capital, Businesses Motivation, Generational Succession, Family Businesses, SMEs