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1 – 10 of 295Pujiyono, Jamal Wiwoho and Wahyudi Sutopo
This paper aims to provide an overview of existing condition, rules and implementation of CSR and create harmony models of corporate social responsibility (CSR) between…
Abstract
Purpose
This paper aims to provide an overview of existing condition, rules and implementation of CSR and create harmony models of corporate social responsibility (CSR) between regulation, Javanese culture values and universal principles, to fill the lack of CSR regulation in Indonesia.
Design/methodology/approach
This study is based on sociology legal research. The regulations and principles have been studied by using the approach of law and social sciences. That characteristic is descriptive evaluative. The primary data are taken from interview with the senior source relations of PT Pertamina Hulu Energi (PHE) in Jakarta, President Director of PT Rosalia Indah Group in Surakarta and Your Honour Prince of Surakarta Hanadiningrat Kingdom. Secondary data are obtained from the review of the literatures pertaining to the material. Secondary data consist of legal materials such as regulations, books, papers and other references. Data analysis technique use theoretical interpretative.
Findings
CSR is implemented by company only for lifting the image. CSR fund allocation is still a company’s secret, and it becomes evidence of the lack of transparency for companies to manage and provide social cost to society. It can also be found that some companies collect donations from the public for disaster relief, but in the distribution of aid, they use the name of a CSR company. There is polarization in the implementation of CSR. A government- owned company is already bound by the provisions of the Regulation of the Minister of state-owned enterprises.
Research limitations/implications
This paper discusses the CSR implementation in Indonesia and it creates a model of accountability of CSR to fill the legal vacuum that occurs at this time. This paper formulates a good relation between traditional Javanese value, government regulations and universal CSR principle.
Practical implications
There remains a mismatch between the Javanese values of philosophy with the positive regulatory norms that result in the implementation of CSR only to meet the requirements of the positive regulatory norm and ignore the obligations involved and to aid the prosperity of the public society.
Social implications
Communities around a company have not been able to enjoy the advantages of the company. Communities should fight for their own lives without being dependent on or being supported by a company’s existence.
Originality/value
This research combines the Javanese values with the positive legal regulations in the implementation of CSR in Indonesia. This research has not been conducted by the others. This research will provides benefits on the idea of imposing sanctions on the non-implementation of CSR, not only through positive legal regulations but also through social sanctions embodied in the Javanese values.
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Sujoko Efferin and Monika S. Hartono
This study aims to provide insight into the meaning and perceptions of leadership and its subsequent management control system (MCS) practices in family business in less developed…
Abstract
Purpose
This study aims to provide insight into the meaning and perceptions of leadership and its subsequent management control system (MCS) practices in family business in less developed countries. More specifically, the study attempts to understand the cultural context of family business and its importance in developing its leadership and MCS, the production and reproduction processes of the culture into the MCS and the resulting MCS.
Design/methodology/approach
We shared the view that organizational reality is negotiated and constructed by collective participants’ consciousness. The study used interpretive case study. Interviews, observation and documentary analysis were used to collect the data.
Findings
Leadership and MCS of family business is embedded in its societal culture. A leader–owner is not a creator but a mere manager of organizational culture because he/she is also a product of the societal culture. The owner and his/her inner circle (family and non-family members) may collectively play crucial roles in producing and reproducing the legitimate MCS based on the extended family concept. In this sense, cultural control based on shared family norms is the most dominant one and simplifies process and result controls. However, business pragmatism may go hand-in-hand with the culture in giving room for MCS transformations.
Research limitations/implications
The family business under study is still run by the family’s first generation, has no subsidiaries and is embedded in Javanese paternalistic culture. Although rich in details, the sample size of the study is a limitation.
Practical implications
This study encourages the owners of a family business to consider the use of strong cultural control along with bureaucratic controls to create a sustainable organisation.
Originality/value
This study offers insight to help understand and explain how leadership and MCS practices in family business are embedded in broader societal culture in less developed countries.
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Somchanok Passakonjaras and Yanki Hartijasti
Indonesia was chosen to be a site of study on leadership style due to its high economic growth potential. The primary objectives of this study are twofold. This paper aims to…
Abstract
Purpose
Indonesia was chosen to be a site of study on leadership style due to its high economic growth potential. The primary objectives of this study are twofold. This paper aims to, first, explore the leadership styles of Indonesian managers and investigate whether the full range leadership theory by Bass (1985), i.e. transformational, transactional and laissez-faire leadership, is applicable in the Indonesian context and second, investigate whether there are differences in leadership styles among Indonesian managers, as Indonesian people are composed of over 300 ethnicities.
Design/methodology/approach
Respondents were asked to rate their direct bosses on leadership and their perceived performance on an multifactor leadership questionnaire. In all, 425 Indonesian managers participated in the study. Multiple regression and t-test were used to address the above research questions.
Findings
Results indicated that the full range leadership theory is applicable in the Indonesian context, in which Indonesian people generally rate their superiors who use transformational leadership higher than those who use transactional and laissez-faire leadership. Ethnic differences in leadership style were found between that of Padang and Javanese and of Padang and Chinese. Padang managers, whose cultural values are quite unique, seem to practice more transformational leadership and contingent reward, which is a positive reinforcement in transactional leadership.
Research limitations/implications
Common method bias may occur due to the single source of data, i.e. subordinates. The confidentiality of the survey helps reduce the bias as subordinates could evaluate their bosses in a true manner. In addition, categorizing ethnicities among Indonesians is not an easy task. A finer distinction of ethnicities is certainly needed in future research.
Practical implications
The results are useful for human resource department in selecting the potential leaders, as transformational leaders are generally more preferable. In addition, the findings shed some light on the effective leadership styles of Indonesian managers perceived by their subordinates.
Originality/value
One major theoretical contribution of this study is a proof of the applicability of the full range leadership theory by Bass (1985) in Indonesian work setting. It confirms the extension of the theory’s universality. A unique theoretical contribution of this study is its being the first study that addresses the ethnic differences in leadership style in Indonesia.
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Arien Arianti Gunawan, Caroline Essers and Allard C.R. van Riel
This article explores value-based motivations to adopt ecological entrepreneurship (ecopreneurship) practices and investigates how intersections of social identities such as…
Abstract
Purpose
This article explores value-based motivations to adopt ecological entrepreneurship (ecopreneurship) practices and investigates how intersections of social identities such as gender, religion and ethnicity influence these motivations.
Design/methodology/approach
The study uses primary data from field observations, social media analysis and semistructured in-depth interviews with 16 owner-managers of small and medium enterprises (SMEs) in the Indonesian craft sector.
Findings
The findings show that self-enhancement, conservation and self-transcendence values motivated the entrepreneurs to adopt ecopreneurship practices. Furthermore, the intersections of identities also tended to influence the entrepreneurs' motivations to adopt ecopreneurship practices.
Research limitations/implications
The sample was limited to the Indonesian craft sector. However, the study has furthered one’s understanding of how values motivate ecopreneurship behavior. Conservation values were added to the values known to influence proenvironmental behavior. Furthermore, Schwartz's value theory, strongly associated with Western, individualistic, culture is suggested to be adapted. In Asian – collectivist – cultures, the values driving the entrepreneur are often more community-oriented than individualistic.
Practical implications
This study recommends policymakers to create more inclusive policies to foster the acceleration of sustainable development by equitably including both genders and encourages them to promote local culture, which motivates entrepreneurs in the craft sector to adopt ecopreneurship practices.
Originality/value
The study contributes to the entrepreneurship literature, particularly to the fields of gender and ecopreneurship, by considering the intersections of identities of the ecopreneurs. A research agenda for ecological entrepreneurship and family business researchers is provided.
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Michael W. Small and Leonard Minkes
The purpose of this investigation is to look at four organisations to see whether they meet the criteria of learning communities. Two are involved with higher education, one is an…
Abstract
Purpose
The purpose of this investigation is to look at four organisations to see whether they meet the criteria of learning communities. Two are involved with higher education, one is an army unit, and the fourth is an organisation responsible for aviation safety.
Design/methodology/approach
The research was based on qualitative analyses of what made the four organisations learning communities. This comprised interviews with key personnel and responding to a 15‐item questionnaire.
Findings
In the Australian example, specialised areas of responsibility were established to facilitate change. In the Indonesian example, a colonial past, a political/cultural divide, a feudalistic approach to modern day problems and a rich tradition presented a challenge to innovation. In the army unit, highly specialised knowledge had to be acquired, adapted and applied. In the aviation safety organisation, technological issues specifying flight operations were the main focus. This organisation was akin to both a learning organisation and an innovative knowledge community, although working within a bureaucratic structure.
Research limitations/implications
One limitation was access to personnel such as CEOs. Another was translating the questionnaire into Indonesian. A third was related to confidentiality, i.e. should participants reveal the identity of their parent organisation, and their own?
Practical implications
The study identified the need to re‐define strategic objectives. Organisations must undertake this task when faced with changing circumstances.
Originality/value
The paper has value because it looks at effective, learning communities and the formal and the informal learning process.
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Dodi W. Irawanto, Phil L. Ramsey and David C. Tweed
This present work aims to report on a study that examines the applicability of Paternalistic Leadership (PL) to public sector organisations in Indonesia. The paper seeks to…
Abstract
Purpose
This present work aims to report on a study that examines the applicability of Paternalistic Leadership (PL) to public sector organisations in Indonesia. The paper seeks to discuss whether the construct of PL is perceived the same way across different cultures on the basis of an empirically‐based profile of Indonesian public sector leadership developed on the basis of a large‐scale survey carried out in Indonesian government agencies.
Design/methodology/approach
The study sample consisted of 1,000 civil servants in the East Java and Jogyakarta Special Region Provinces of Indonesia. Data were collected using simple random sampling techniques. The 42 items in the PL instrument were subjected to explanatory factor analysis (EFA) with variamax rotation. EFA was used to test the degree to which the model of PL proposed by Cheng applied to the Indonesian sample.
Findings
Using confirmatory factor analysis the results showed that there are core similarities with the Cheng et al. model which has been tested in Taiwan. The Indonesian benevolent, moral‐leadership behaviour is substantially confirmed with the model adopted for this study. According to civil servants' perception, it seems likely that Indonesian leaders are visible and authoritarian.
Research limitations/implications
The findings are based on a relatively small proportion of the total number of Indonesian civil servants, and focuses on those who are most likely to still uphold Javanese values. Another limitation is in the design of the study, broader focus on PL will allow the study to explain in any detail what the actual impact of PL is on management practices.
Practical implications
This research suggests that people teaching leadership or acting in leadership roles in Indonesia need to develop a clear understanding of the particular values of that country, rather than assuming that all Asian cultures are exactly alike.
Originality/value
The paper adds insight into the applicability of PL in Indonesian public sector organizations.
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Hardo Firmana Given Grace Manik, Nurul Indarti and Andy Susilo Lukito-Budi
This study aims to examine the moderating effect of firm age and size on the relationship between network characteristics (network centrality, network density and tie strength…
Abstract
Purpose
This study aims to examine the moderating effect of firm age and size on the relationship between network characteristics (network centrality, network density and tie strength) and firm performance. This study also aims to investigate the difference in the effect of network characteristics on the firm performance of Javanese and Minang ethnic enterprises.
Design/methodology/approach
An explanatory research design was adopted, which involved a survey in the form of a structured questionnaire of target owners and managers of 34 Javanese ethnic enterprises in North Sumatra, Indonesia and 100 Minang ethnic enterprises in Yogyakarta, Central Java, Jakarta and Bogor, Indonesia. The data is analysed using structural equation modelling.
Findings
The findings of this study confirm resource dependency and social capital theory. Network centrality, network density and tie strength have a significant effect on firm performance. The results also show support for the moderating role of firm age on the relationship between network characteristics and firm performance. The moderating role of firm size is not supported. The comparative test of the influence of the three network characteristics on ethnic enterprise performance confirms that Javanese ethnic enterprises have identity-based networks, while Minang ethnic enterprises use calculative-based networks.
Originality/value
The originality of this study lies in the investigation of the role of family and external partners in the running of ethnic enterprises at start-up and during the growth phase. The definition of “family” is based on a kinship perspective due to the specificity of Asian cultures, particularly in Indonesia. Of the hundreds of tribes in Indonesia, the Javanese and Minang were chosen because both are well-known as entrepreneurial tribes, have unique cultural values and have active migrants to other provinces.
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Intan Purwandani and Sarani Pitor Pakan
This paper aims to unpack personal narratives of local residents in relation to the effects of overtourism in Yogyakarta, Indonesia. The paper uses Pierre Bourdieu’s concept of…
Abstract
Purpose
This paper aims to unpack personal narratives of local residents in relation to the effects of overtourism in Yogyakarta, Indonesia. The paper uses Pierre Bourdieu’s concept of habitus to understand how local residents cope with temporal overtourism.
Design/methodology/approach
Findings were gathered from observations and interviews. Interviews were conducted with 12 informants, consisting of local small-to-medium enterprise tourism entrepreneurs, local informal tourism workers and a group of locals uninvolved in tourism.
Findings
The paper has two key findings. First, locals uninvolved in tourism show empathetic behavior toward the locals involved in tourism despite their experiencing negative effects of tourism. The involved locals, for their part, were aware of the importance of resolving issues with the uninvolved locals through regular communication so as to secure the sustained future of tourism. Second, the use of social capital by involved and uninvolved locals reflects the local Javanese culture and value system in which social harmony and integration are paramount.
Research limitations/implications
Local habitus forms and informs locals’ perceptions on temporal overtourism issues. It enables an understanding on how locals manage the effects of overtourism in Yogyakarta. The habitus, which is greatly influenced by Javanese values, creates attitudes and behaviors which are empathetic and tolerant.
Practical implications
To avoid the potential conflict when overtourism explicitly or implicitly frustrates locals, policy should be formulated by taking into account the findings of this paper on the local habitus. The study contributes to the overtourism debate by looking at the inter-relationship of local social structures and cultural context with local responses to temporal overtourism.
Originality/value
Using the concept of habitus, this research deepens existing understanding on the local responses toward overtourism. This research expects to theoretically enrich and complexify debates on tourism–habitus nexus in tourism studies.
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Hendi Yogi Prabowo and Kathie Cooper
Based on the authors’ study, the purpose of this paper is to better understand why corruption in the Indonesian public sector is so resilient from three behavioral perspectives…
Abstract
Purpose
Based on the authors’ study, the purpose of this paper is to better understand why corruption in the Indonesian public sector is so resilient from three behavioral perspectives: the Schemata Theory, the Corruption Normalization Theory and the Moral Development Theory.
Design/methodology/approach
This paper examines corruption trends and patterns in the Indonesian public sector in the past decade through examination of reports from various institutions as well as other relevant documents regarding corruption-related issues to gain a better understanding of the behavioral mechanisms underlying the adoption of corruption into organizational and individual schemata. This paper also uses expert interviews and focus group discussions with relevant experts in Indonesia and Australia on various corruption-related issues.
Findings
The authors establish that the rampaging corruption in the Indonesian public sector is an outcome of cumulative decision-making processes by the participants. Such a process is influenced by individual and organizational schemata to interpret problems and situations based on past knowledge and experience. The discussion in this paper highlights the mechanisms of corruption normalization used to sustain corruption networks especially in the Indonesian public sector which will be very difficult to break with conventional means such as detection and prosecution. Essentially, the entire process of normalization will cause moral degradation among public servants to the point where their actions are driven solely by the fear of punishment and expectation of personal benefits. The three pillars of institutionalization, rationalization and socialization strengthen one another to make the entire normalization structure so trivially resilient that short-term-oriented anti-corruption measures may not even put a dent in it. The normalization structure can be brought down only when it is continuously struck with sufficient force on its pillars. Corruption will truly perish from Indonesia only when the societal, organizational and individual schemata have been re-engineered to interpret it as an aberration and not as a norm.
Research limitations/implications
Due to the limited time and resources, the discussion on the normalization of corruption in Indonesia is focused on corruption within the Indonesian public institutions by interviewing anti-fraud professionals and scholars. A more complete picture of corruption normalization in Indonesia can be drawn from interviews with incarcerated corruption offenders from Indonesian public institutions.
Practical implications
This paper contributes to the development of corruption eradication strategy by deconstructing corruption normalization processes so that the existing resources can be allocated effectively and efficiently into areas that will result in long-term benefits.
Originality/value
This paper demonstrates how the seemingly small and insignificant behavioral factors may constitute “regenerative healing factor” for corruption in Indonesia.
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Thriwaty Arsal, Dewi Liesnoor Setyowati and Puji Hardati
The research aims to investigate the value of local wisdom, analyse local wisdom for the harmony of a multicultural society and discover forms of inheritance of local wisdom for…
Abstract
Purpose
The research aims to investigate the value of local wisdom, analyse local wisdom for the harmony of a multicultural society and discover forms of inheritance of local wisdom for maintaining peace.
Design/methodology/approach
Qualitative research was used in this research. The primary data were obtained through observation, in-depth interviews and focus group discussions. Secondary data were obtained through reports from agencies, such as Social Services and Central Bureau of Statistics, literature studies and news from the internet. The data validity technique used was source triangulation. The data were analysed with stages of data reduction, data presentation and conclusion.
Findings
The results showed that the local wisdom sedekah bumi, selamatan malam 1 suro, sadranan and kuda lumping contain values related to religion, cooperation, harmony, togetherness, kinship and cohesiveness; the implementation of local wisdom can strengthen social harmony; and the inheritance of local wisdom takes place sustainably from families and communities to the younger generation.
Research limitations/implications
The research was conducted during the peak of COVID-19 cases in Central Java, Indonesia. Therefore, the data could not be obtained maximally.
Practical implications
This research contributes widely not only to the village studied but also to other communities with similar conditions.
Social implications
The inheritance of local wisdom can help maintain peace, unify societies and offer solution to social conflicts by implementing traditions containing humanity and peaceful values.
Originality/value
This research offers a new insight concerning the inheritance of local wisdom that can function as a tool to achieve a peaceful society and prevent social disasters from occurring.
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