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This paper aims to explore and explain how predecessors (incumbents) of ethnic Chinese family small and medium-sized enterprises (SMEs) in Indonesia or appropriately called Chinese-Indonesian family SMEs nurture their successors in procuring transgenerational entrepreneurship.

A total of 25 participants were involved in this qualitative study which employed a multi-method triangulation design with the following research instruments: semi-structured in-depth interviews with experts, incumbents and successors of Chinese-Indonesian family SMEs, field notes from conversations and observations during engagement with participants affiliated to the family SMEs, a focus group discussion with academicians and literature reviews. Another key approach is source triangulation, where different participants – e.g. from among the experts, from among the incumbents, successors and family members in each family business case were interviewed and engaged outside the interview sessions.

The proposed theoretical framework depicts comprehensive attributes of nurturing Chinese-Indonesian successors to continue enterprising at the helm of family SMEs. Propositions are used to explain the impacts these attributes have on transgenerational entrepreneurship specifically. At the personal level, incumbents have to focus on discovering the successors’ passions and nurture them in formal education, childhood involvement, as well as bridging them in entrepreneurial knowledge through cultural values, mentorship, autonomy and role modelling. Incumbents also had to plan for their retirements to provide autonomy for successors. At the firm/family level, incumbents must be able to set a foothold on family governance, firm governance and ownership distribution to reduce conflicts in their family businesses. Furthermore, as a minority group with past traumatic experiences, Chinese-Indonesian family SMEs usually equip themselves with contingency plans to protect their assets for the long-term future.

This study was conducted in Indonesia amongst Chinese-Indonesian family SMEs and thus it is not generalisable in other settings. Literature reviews on family SMEs succession are still scant, especially on the Chinese-Indonesian.

Predecessors/incumbents of Chinese-Indonesian family SMEs could consider implementing the proposed nurturing strategies to their successors to sustain the longevity of the business based on trust, stewardship and harmony. The theoretical research framework resulted from this study offers general suggestions on how to nurture the next generation specifically from personal/interpersonal perspectives, which must be accompanied by specific scopes of family and firm aspects. This study extends beyond indicating the factors (ingredients) by explaining how to nurture transgenerational entrepreneurship (cook the ingredients) in SMEs for a tactful transition. Hence, the incumbents play vital roles and must be poised to adjust their mindsets to certain aspects indicated in this study.

Most overseas Chinese businesses are family-owned, and besides Indonesia constituting the largest Chinese population outside the Republic of China, this 3 per cent of Indonesia’s people are known for controlling about 70 per cent of the economy. Furthermore, SMEs play a significant role in the Indonesian economy, as they provide about 97 per cent off the country’s employment and 57.8 per cent of the gross domestic product. Hence, the longevity of Chinese-Indonesian family SMEs must be well managed to bolster the economy and social welfare of the country.

A transgenerational entrepreneurship model in the context of Chinese-Indonesian family SMEs which incorporates the nurturing process of the successor to step up the helm of the business is proposed in the study.

This paper aims to investigate the moderation effect of customer orientation variable on the influence of professional competence toward the quality of strategy implementation.

This research is quantitative explanative associative, which is trying to explain the causality relationship between exogenous and endogenous variables. The research was conducted in the Shariah banking office in Central Java Province. The population of this research is all top and middle levels of Shariah Commercial Bank in Central Java region. The sampling technique used in this research is non-probability sampling, that is, purposive sampling, which is the method of determining the sample based on certain criteria and the research sample obtained is 113 respondents. The research approach used is quantitative with the analysis tool of Generalized Structure Component Analysis.

There is influence of professional competence variable and customer orientation on quality of implementation strategy. The higher the professional competence and customer orientation, the higher the quality of strategy implementation. It is also found that customer orientation moderates the influence of professional competence variables, which are quasi-moderating and reinforcing.

This research has two sources of problems, which are research gap and business phenomenon. Research on Drucker’s business purpose (1954) is realized when a firm identifies the relationship between strategic methods and its ability to generate profits. This research attempts to solve the problem or gap between market orientation and business performance, which has been widely researched by marketing experts, but still shows controversial results. In this research, the researcher takes the definition of Narver and Slater (1990) to examine market orientation because the mostly found empirical research on market orientation and innovation (Han, et.al. 1998; Subin and Workman, 2004; Ferrel and Luke, 2000) has used this conceptualization and its associated operations. Therefore, to compare and distinguish the results of this research with the results of previous research, this research uses the definition of Narver and Slater (1990). No previous study has comprehensively studied the moderating effects of customer orientation on the relation between profesional competence toward quality of strategy implementation, especially in a commercial bank in Central Java region.