24 ABSTRACT The purpose of this research is to understand comprehensively on the implementation of corporate success as a tool for the business world for formulating company policies that are very useful in the field of human resource management, by applying determi- nant variables that have a large influence consisting of succession managemen, per- formance employee and corporate success. The sample that was studies was 365 em- ployees from the total population of all PT Pisma Group employees which was divided into 5 subsidiaries engages in the field of integrated textile, garment, trading, hospital- ity & property as many as 4,204 employes were carried out in three company location: Semarang, Pekalongan and Surabaya, using the questionnaire method in testing the data generated is valid and reliable. Data analysis techniques use quantitative meth- ods with path analysis methods. This study concludes that corporate success is directly related to the existence of succession management and employee performance. Succes- sion management requires that employee performance against the company be clear and measurable and cannot stand alone. Employee performance appraisal must be consistent and integrated with well-agreed succession management, so that the compa- ny is able to get reliable and prospective professional company leaders are able to support the company in the future to be very competitive, to the desired company suc- Keywords: succession management, performance employee, corporate success, Sample criteria, PT Pisma Group. Received: 11 July 2020 ; Accepted: 10 August 2020 ; Publish; December 2020 How to Cite: Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). The Influence of Succession Manage- ment and Performance Employee to Corporate Success (Analysis In PT Prisma Group). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35. https:// doi.org/10.21009/JOBBE.004.2.03 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group) Irzan Syahrial Email: irzansyahrial@gmail.com Universitas Negeri Jakarta Yetti Supriyati Universitas Negeri Jakarta Bedjo Sujanto Universitas Negeri Jakarta https://doi.org/10.21009/JOBBE.004.2.01 https://doi.org/10.21009/JOBBE.004.2.01 25 INTRODUCTION Developing a company business is not an easy job, it takes a long period of time continuously for the next few years, decades or even generations. Corporate success shows without good employee performance that has a close relationship in the for- mation of a succession of all managerial layers in a well-planned company it is impos- sible to make a business successful. Employee performance provides a clear picture of the organisation's targets both short and long term. Employee performance must be given a standard of performance so that employees can provide new ideas in business and provide challenges for the company to answer and be able to provide performance that is used as a measurement of career development so that the succession of all levels of employees can make a positive contribution to the organisation. With employee performance appraisal and correct succession management, productivity can be assessed in accordance with the business received by all employees in accordance with the value of performance achievement. The quality management system that has been running at PT. Pisma Group is an ISO 9001: 2000 management system. Employee performance appraisals conducted so far have not answered all organisational factors, because there is no evaluation of em- ployee productivity, frequent delays in decision making by management, low motiva- tion of employees in work and companies are unable to compete and adapt to techno- logical and information advancements and their results. Improving performance ap- praisals which are done only limited to the appraisal without any employee perfor- mance appraisals continuously in the company to find out the success of the business to determine priorities improvement. Based on the background of the problems that have been raised, it is deemed necessary to conduct research on the effect of succes- sion management, employee performance, and corporate success. Based on the background that has been explained above, the authors identify the problems that exist in this study related to the problem of corporate success. The prob- lem of corporate success activities will in turn be able to produce employee competent who to be dedicated to the organisation, satisfied with their work and have high productivity. Given the factors identified above, many things can be explored for research stud- ies. These studies include: (1) Does leadership directly influence corporate success, (2) Does human resource planning directly influence corporate success, (3) Does a cus- tomer focused approach directly influence corporate success, (4) Does measurement analysis directly influence corporate success, (5) Does succession management direct- ly affect corporate success, (6) Does a workforce focused approach directly affect cor- porate success, (7) Does an operation focused approach directly affect corporate suc- cess, (8) Does knowledge management directly affect corporate success, (9) Does the focus on results and value creation directly influence corporate success, (10) Does the perspective system directly influence corporate success. In order to make this research more directed, focused and not widespread, the au- thor limits the scope of the discussion by not discussing all the variables that can affect corporate success, but is directed specifically and limited to two factors, namely: (1) succession management and (2) employee performance. The next limitation relates to research subjects which are limited to employees only about the influence between succession management, employee performance and corporate success at PT Pisma Group. Based on the formulation of the problem, this study has the following uses: Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 26 1. Academic Benefits. Research is intended as a medium of scientific information for educational institu- tions, can be used as a reference for developing science as a very useful in the field of standardisation of employee performance and succession management towards corpo- rate success 2. Practical benefits. a. Can be used as material for assessment and information for companies about whether succession management and employee performance can be used as material for organisational leaders in its implementation of realising the company's vision and mission towards corporate success. b. The results of this study are expected to provide input to business practitioners in order to get a picture of the direct influence of succession management, employee performance and corporate success. So that it can provide meaningful input for im- proving the company's performance as one of the considerations in formulating com- pany policy. LITERATURE REVIEW Corporate Success Corporate Success is a process of evaluating the company's operational activities in the form of actions and activities of an organisation in a certain period in accordance with the objectives set. In other words, corporate success is an assessment of the level of effectiveness and efficiency of an organisation's activities. The main purpose of cor- porate success is to motivate personel in achieving organisational goals and in meeting predetermined standards of behavior, so as to produce actions and results desired by the organisation. Tulus (Tulus, 2002) defines the factors that influence corporate success can be known from two factors namely internal factors and external factors. Internal factors include the quality of human resources, organizational mastery, organizational struc- ture, management systems, participation, business fields, capital strength, business net- works with outside parties, and the level of entrepreneurship.While external factors can be divided into two, namely government and non-government factors. Government factors include economic policies, bureaucrats, politics, and the level of democracy. Non-government factors include the economic system, the socio-culture of the com- munity, the labor system and labor conditions, the condition of the infrastructure, the level of public education, and the global environment. Primiana (Primiana, 2009) opinions means that corporate success has been ful- filled capital, productive distribution and the achievement of organizational goals. While Faizal (Faizal, 2007) argues corporate success is defined as the success of a business achieving its goals, a business is said to be successful when it makes a profit, because profit is the goal of someone doing business. Whereas Noersasongko (Noersasongko, 2005) corporate success is defined as the performance of a company that can be formulated through a comparison of the value produced by the company with the expected value by utilizing the available resources. Then the dimensions of corporate success according to Riyanti (Riyanti, 2003) used for this study include an increase in capital accumulation or an increase in capital, the amount of production, the number of customers, business expansion, expansion of marketing areas, improvement of physical facilities and business income. Based on the conceptual description above, it can be synthesized that corporate success is the success of the business achieving its goals, where success is obtained Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 27 from entrepreneurs who have an intelligent brain that is creative, follows technological developments, can apply proactively and look a better business situation than the peri- od before and describe more than others of the same level or class.. Succession Management Leabman (Leabman, 2016) preparing individuals for future positions, especially in a fast-spinning world is widely known to be important for the corporate success. Understanding succession according to Rothwell (Rothwell, 2018) is an unavoidable event in a company's business. Companies are required to be able to realize the succes- sion from the first generation to the next generation. Succession management ensures the continuity of the company to survive, grow and make a profit. Coruso (Coruso, 2018) defines succession management as a systematic and purposeful effort made by organizations to continue leadership, master and develop scientific and intellectual capital, human resource development and business growth. Succession management has a critical role in achieving organizational effective- ness. Rapid change and high competition in the global market requires competitive and able human resources to survive. Thus activities are needed that can integrate skills and knowledge for human resource planners and all executives responsible for strate- gic planning. The succession program according to Jackson (Jackson, 2010) is a com- plex system designed to maintain the welfare of the organization. Key activities in suc- cession management identify workers who have high potential, identify the competen- cies needed and provide learning experiences to develop employee competencies. Suc- cession programs can be developed in several components of selection procedures, de- velopment plans, mentorship, systematic reviews of performance, and career planning that involve employees. The decision to change the strategy needed in a long-term per- spective and its success depends on changing the work environment to support chang- es in employee behavior. Evaluation in this succession program emphasizes the ability to predict individual outcomes as career progress has been achieved and satisfaction with his career. In succession management, long-term efforts must be made in accordance with the level of importance in a balanced manner. Long-term implementation design must have a strong link between long-term human resource planning and human resource strategies and practices. Much of the knowledge of how to develop and improve long- term human resource programs is generalized through trial and error rather than sys- tematic research. However, knowledge about the development and improvement of human resources has been carried out intense research with wide-scale data on the management planning and succession management systems that are ongoing. Corporate success according to Walker (Walker, 2004) is when getting a suc- cessful leader brings the company to a better rank in similar industries and all of that is needed succession management and the larger the company is managed, the harder it is for managers to find out who the employees are the most good or best people in the company. Robb (Robb, 2006) further argues that a company that fails in implementing suc- cession, actually loses the moment of talent wars which results in the failure of busi- ness competition. Success in managing succession management will be able to in- crease company productivity and obtain a higher rate of return that is beneficial to in- vestors. According to Torres (Torres, Roselindo & Pasmore, 2005) to do all that must be followed by an objective assessment, careful and careful process, attention to ra- tional, political, and some emotional elements in the process of succession. Hollins- worth (Hollinsworth, 2004) explains that programs related to leadership development Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 28 are fundamental factors for the process of implementing succession management. On the other hand there is the opinion of Byham (Byham, 2001) which states that although succession management is a good succession process, it must still be fol- lowed by a continuous control function, bearing in mind that succession management is part of long-term human resource planning. In the leadership process the use of suc- cession management without being followed by attention to short-term issues will get more benefits, and the weakness lies in human error in the application of its implemen- tation. Based on the conceptual description above, it can be synthesized, sucession man- agement is a systematic process of a series of activities carried out by the company to continue leadership, mastering and developing science and intellectual capital in order to prepare and ensure the sustainability of the company through generations. Employee Performance Widodo (Widodo, 2014) believes employee performance is part of the results of employee work both in terms of quality and quantity based on predetermined work standards. As for the opinions of experts regarding the notion of performance, as follows: a. According to Mangkunegara (Mangkunegara, 2009) stated that performance is the work of quality and quantity achieved by an employee in carrying out their duties in accordance with the responsibilities given to him. b. Meanwhile, according to Sedarmayanti (Sedarmayanti, 2013) revealed that perfor- mance is a translation of performance which means the work of an employee, a man- agement process or an organization as a whole, where the results of the work must be able to show concrete and measurable evidence (compared to standards) predeter- mined). c. According to Wibowo (Wibowo, 2016) stated that performance is about doing work and the results achieved from the work According to Whitmore (Whitmore, 2007) performance is a condition that must be known and confirmed to certain parties to determine the level of achievement of an agency's results associated with the vision carried out by an organization or company and to know the positive and negative impacts of an operational policy. The term performance or performance according to Hertz (Hertz, 2012) refers to results and something that results from processes, products and services that can be evaluated and compared relatively with the objectives, standards, past results. Understanding Performance Appraisal according to Mulyadi (Saputra, 2008) suggests that performance appraisal is a periodic determination of the operational ef- fectiveness of an organization, organizational units and employees based on predeter- mined standard targets and criteria. Performance appraisal is a part of the strategy management process that can provide comprehensive strategy information for decision makers. While Saputra (Saputra, 2008) defines performance appraisal as a measure- ment measure taken on various activities in the value chain that exist in the company. While the measurement results are then used as feedback that will provide information about the achievement of the implementation of a plan and the point at which the com- pany requires adjustments to planning and controlling activities. Widodo (Widodo, 2014) is of the opinion as long as employees work in an or- ganization regularly it is necessary to evaluate their performance. Performance ap- praisal is an evaluation of a person's performance level compared to predetermined performance standards, for consideration in determining promotion, compensation, the Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 29 need for training or development, as well as for someone's dismissal. The results of the performance appraisal are effective feedback information as material for making ad- justments for various strategic aspects of business management going forward. Based on the conceptual description above, it can be synthesized that employee performance is the result of employee work both in terms of quality and quantity based on work standards set by the organization to be achieved. RESEARCH METHODS This research uses a quantitative approach with a survey method through path analysis techniques with the help of the SPSS program. The variables of this study are succession management (X1), employee performance (X3), and corporate success (Y), The direct effect between the variables mentioned above can be described in the fol- lowing correlation model: In this study the population was all employees in the Pisma Group, totaling 4,204 people. The sampling technique was taken by proportional random sampling, using the Slovin formula according to Husien Umar (Umar, 2009) as follows: n = = 4204 / (1 + (4204 (0.05) 2 )) = 365 persons Data Technique Collection is done by using research instruments in the form of a questionnaire compiled by a team of researchers under the guidance of the promoter. The statements in the survey questionnaire are closed question types using a Likert Scale with a value of 1 to 5, the instruments in this study consist of 3 (three) types, each instrument about (1) succession management, (2) employee performance, and (3) corporate success. All instruments took the form of questionnaires. Technique scoring as above uses a Likert scale model. Data analysis was performed using statistics with path analysis techniques. De- scriptive analysis is used to present data, data size, central size, and size of distribu- tion. Presentation of data includes distribution lists and histograms. The central size includes the mean, median, and mode. The size of the spread is in the form of vari- ances and standard deviations or standard deviations. Whereas inferential analysis is used to test research hypotheses by using path analysis through the analysis requirements test, namely normality and linearity test with SPSS 22 program tools. Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 30 Statistical Hypothesis Testing the statistical hypothesis that will be proven in this study as follows: 1. Succession management (X1) positive effect directly on corporate success (Y) Ho: There is no positive influence between succession management (X1) and cor- porate success (Y) H1: There is positive influence between succession management (X1) and corpo- rate success (Y) 2. Employee performance (X2) positive effect directly on corporate success (Y) Ho: There is no positive influence between employee performance (X2) and cor- porate success (Y) H1: There is positive influence between employee performance (X2) and corporate success (Y) 3. Succession management (X1) positive effect directly on employee performance (X2) Ho: There is no positive influence between succession management (X1) and em- ployee performance (X2) H1: There is positive influence between succession management (X1) and em- ployee performance (X2) RESULT AND DISCUSSION This study consists of three variables, with details: two exogenous variables and one endogenous variable. Exogenous variables are employee performance and succes- sion management, while endogenous variables are corporate success. To get an over- view of the research data of each variable, the following will be presented research da- ta through descriptive statistics, namely the frequency distribution of each variable. Corporate Success Based on the data processing using the SPSS program on corporate success vari- ables are presented in table 4 below: Table 1. Corporate Success Statistics Descriptive Statistics Table 1 of the data generated by the sample amounted to 365 respondents, with a mini- mum value of 103 and a maximum of 132 with mean of 119.19, variance 36.637, standard deviations of 6.053 and class length (range) of 29 . N Ran ge Mini- mum Maxi- mum Mean Std Dev Vari- ance Statistic Sta- tistic Statistic Statistic Statistic Std Error Statis- tic Statistic Corporate Success Valid N (Listwise) 365 365 29 103 132 119.19 .317 6.053 36.637 Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 31 Succession Management Based on the data management carried out by using the SPSS program on the succession management variable, the data is obtained as follows: Table 2. Succession Management Statistics Descriptive Statistics Table 2 of the data generated by the study sample totalled 365 respondents, with a minimum value of 105 and 138 to 150, with mean of 122.39, variance 13.948, the standard deviation of 3.735 and length classes (range) of 33. Employee Performance Based on data management carried out using the SPSS program on variables data obtained as follows: Table 3. Employee Performance Statistics Descriptive Statistics Table 4 of the data generated by the study sample totalled 365 respondents, with a minimum value of 111 and a maximum of 138, with mean of 125.55, variance 35,342, standard deviation of 5,945 and class length (range) of 27 Based on the results of testing of hypotheses and path coefficients, a recapitula- tion table for testing hypotheses and path coefficients is compiled, as presented in table 8 below. N Ran ge Mini- mum Maxi- mum Mean Std Dev Vari- ance Statis- tic Sta- tistic Statistic Statistic Statis- tic Std Error Statis- tic Statistic Succesion Management Valid N (Listwise) 365 365 33 105 138 122.39 .195 3.735 13.948 N Range Mini- mum Maxi- mum Mean Std Dev Variance Statis- tic Statis- tic Statistic Statistic Statistic Std Er- ror Statis- tic Statistic Employee Perfor- mance Valid N (Listwise) 365 365 27 111 138 125.55 .311 5.945 35.342 Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 32 Table 4. Recapitulation of Research Hypothesis Testing Results CONCLUSION AND RECOMMENDATION Conclusion From the results of the research and discussion, then based on this the following conclusions can be drawn: 1). Succession management has a direct positive influence on corporate success. This means that an increase in Succession management led to an increase in PT. Pisma Group's corporate success, 2). Employee performance has a di- rect positive influence on corporate success. This means that an increase in employee performance led to an increase in PT. Pisma Group's corporate success and 3). Succes- sion management has a direct positive influence on employee performance. This means that an increase in succession management causes an increase in the perfor- mance of the employees of PT. Pisma Group. Recommendation Based on the description and assessment in the above, several suggestions were submitted, namely: 1). Companies need to make research designs on a regular basis to be able to identify the process of selecting high potentials and employee development No Hypothesis Test Statistics Coefficient Path Analysis tcount Decision 1 Succesion Manage- ment (X1) has a direct positive in- fluence on Corpo- rate Success (Y) H0: There is no direct positive influence between X1 and Y H1: There is direct pos- itive influence between X1 and Y PYX1= 0.709 19,173 H0 rejected, the meaning X1 direct posi- tive influence to (Y) 2 Human Resource Planning (X2) has a direct positive in- fluence on Corporate Success (Y) H0: There is no direct positive influence between X2 and Y H1: There is direct pos- itive influence between X2 and Y PYX2= 0.842 29,782 H0 rejected, the meaning X2 direct pos- itive influence to (Y) 3 Succession Man- agement (X1) has a direct positive in- fluence on Human Resource Planning (X2) H0: There is no direct positive influence between X1 and X2 H1: There is direct pos- itive influence between X1 and X2 PX2X1= 0.863 1,668 H0 rejected, the meaning X1 direct pos- itive influence to (X2) Syahrial, I., Supriyati, Y., & Sujanto, B. (2020). Journal of Business and Behavioural Entrepreneurship, 4(2), 24-35 The Influence of Succession Management and Performance Employee to Corporate Success (Analysis In PT Prisma Group). https://doi.org/10.21009/JOBBE.004.2.03 https://doi.org/10.21009/JOBBE.004.2.01 33 in order to facilitate the placement of key positions of the company by applying suc- cession management patterns to improve corporate success. One pattern of succession management carried out by company leaders should involve elements in the organisa- tion that involves employees so that they are also responsible for the input they pro- pose if the proposal becomes part of the decision taken. Thus, employees are also re- quired to carry out their responsibilities in carrying out the decisions taken, 2. Organi- sational commitment and work motivation of employees need to be grown by the lead- ership of the company so that employees feel they have the company where they work. With high work commitment and motivation they will continue to fight for the inter- ests of the company and encourage the carrying out of tasks so that this will have an impact on improving employee performance. Besides giving awards and bonuses, it should distinguish between those employees who have low work motivation and those who have high work motivation, done fairly and correctly, so that employees are more precise in making decisions in carrying out work so that it has an impact on increasing corporate success and 3). Companies need to do the design pattern of learning succes- sion management, so that managers are able to make adjustments to the pattern of suc- cession management in accordance with the situation faced by employees by assessing the working position in the future, which is done by assessing the work and the re- quirements of competence in leadership positions in the future. 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