Business Efficiency in Times of Crisis: A Comparative Study of Family and Non-Family Firms in Indonesia

Abstract

This study investigates the prioritized strategies of family and non-family firms in maintaining efficiency during economic crises, employing a two-phase analytical approach. Initially, we utilized the Data Envelopment Analysis (DEA) method to compute efficiency scores, which served as the dependent variable in the subsequent Generalized Estimating Equations (GEE) model. Our analysis revealed that family firms exhibited superior efficiency, particularly in the years 2020 and 2021, while the business sector significantly impacted efficiency outcomes. The second phase employed the Analytic Hierarchy Process (AHP), integrating the dynamic capability framework and socio-emotional wealth (SEW) characteristics to derive prioritized strategies. The findings indicated that family firms emphasize relational governance and long-term stability, which enhance their resilience during crises, whereas non-family firms focus primarily on immediate financial objectives. The results offer crucial insights for managers and policymakers on leveraging ownership dynamics to bolster resilience and operational efficiency amid economic downturns. These insights are particularly relevant for developing strategies tailored to the unique strengths and weaknesses of family and non-family firms, ultimately contributing to sustainable performance in challenging economic environments.