Title: Comparing cost reduction strategies between family and non-family firms in the time of COVID-19

Authors: Hadi Wibowo; Dominicus Savio Priyarsono; Siti Jahroh; Suhendi

Addresses: School of Business, IPB University, Gedung SB-IPB. Jl. Raya Pajajaran, Bogor, Jawa Barat, 16128, Indonesia ' Faculty of Economic and Management, IPB University, Gedung FEM. Jl Agatis Kampus Dramaga, Bogor, Jawa Barat, 16680, Indonesia ' School of Business, IPB University, Gedung SB-IPB. Jl. Raya Pajajaran, Bogor, Jawa Barat, 16128, Indonesia ' School of Business, IPB University, Gedung SB-IPB. Jl. Raya Pajajaran, Bogor, Jawa Barat, 16128, Indonesia

Abstract: Amidst the COVID-19 pandemic, family-managed firms may perform differently compared to non-family firms. This research aims to measure efficiency scores in order to determine cost reduction strategies by employing a total of 60 entities listed on Indonesia Stock Exchange (IDX) for a four-year research period, 2019 to 2022. Thirty of the entities are categorised as family firms, whilst the remaining 30 are its counterpart. A method of DEA CRS input-oriented model is employed with a complementary bootstrap technique to correct the bias scores. Family firms show higher overall efficiency score, particularly in the sector of industrials and consumer non-cyclicals. Fixed assets require the greatest reduction in family firms, while financial costs do in non-family firms. Consumer non-cyclicals demands the greatest improvement, whereas the best efficiency is achieved by the consumer cyclicals. This research contributes to the development of academic literature regarding firms' ownership to improve their financial efficiency in times of crises.

Keywords: COVID-19; cost reduction strategies; data envelopment analysis; DEA; efficiency score; family and non-family firms.

DOI: 10.1504/IJMP.2026.153544

International Journal of Management Practice, 2026 Vol.19 No.3, pp.314 - 334

Received: 03 Apr 2024
Accepted: 27 Aug 2024
Published online: 13 May 2026 *

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