Javanese Culture Dominance in Indonesian Business
Review of literatures
Hofstede (1987), Kanungo and Mendoca (1996), and Schein (2004):
Domination of a culture in a society gives birth to a significant effect on individual and business behaviours in the society where individual or business take place.
Antlov (1994), Magnis-Suseno (1997), Mann (1996), Mulder (1994), Yudianti and Goodfellow (1997):
Javanese culture has become dominant and therefore influenced the business behaviours of Indonesian people.
Kanungo and Mendunca (1996: 109):
Socio-cultural environment determines management beliefs, values, and assumptions of subordinates and work behavior as part of the organizational work culture.
Hofstede (1982):
The principles of conflict avoidance and common respect are manifested within the social life of Javanese people through a hierarchical status and collectivism. This manifestation can be seen in the environmental-social relationship in Indonesia, either in business organization or in governmental bodies.
Mash and Goodfellow (1997):
There are two basic concepts of leadership and decision-making process according to the thinking of the Javanese people: Musyawarah (common interest) and Mufakat (mutual decision). They have become an obligation that must be done by a leader in making the decisions.
March and Olsen (1989: 22):
Behaviors are incorporated within or directed by cultural dictate and social norm. Act is often based on identification of behaviors, which generally agree with regular thinking, not on the results measurement expected from the available choices.
Hines (1988), Miller (1994), Morgan (1988; 1998), and Munro (1998):
Provided that practice of financial disclosure, as part of accounting activities, relates to values, therefore the application of the Javanese ideas on social-ethical relationship shall function to comprehend the quality of the financial disclosure is issued by an organization.
Jaggi (1975):
Orientation to value by a manager remarkably affects the manager in making his/her financial statement; individual value orientation of a society generally depends on the society's social environment.
Sudarwan and Fogarty (1996):
The making of accounting and reporting practice standards is patterned according to the change in cultural norms.
Mann (1996) and Magnis-Suseno (1997):
Javanese culture affects the way-of-life of most Indonesian people. Javanese culture also dominates cultural, business, social, and political activities in Indonesia.
Hofstede (1982):
Four dimensions of Javanese culture, which become the fundamental of business and governmental activities in Indonesia are: 1) collectivism-individualism; 2) authority; 3) conflict avoidance; and 4) masculinity-femininity.
Results:
The practice of financial reporting can be affected by either culture or politics. In Indonesia, Javanese culture has been dominant in the corporate life and behavior of business community. The Javanese way-of-thinking about ethical social relationship is considered valuable to understand the practice of financial reporting of an organization.
Hofstede (1987), Kanungo and Mendoca (1996), and Schein (2004):
Domination of a culture in a society gives birth to a significant effect on individual and business behaviours in the society where individual or business take place.
Antlov (1994), Magnis-Suseno (1997), Mann (1996), Mulder (1994), Yudianti and Goodfellow (1997):
Javanese culture has become dominant and therefore influenced the business behaviours of Indonesian people.
Kanungo and Mendunca (1996: 109):
Socio-cultural environment determines management beliefs, values, and assumptions of subordinates and work behavior as part of the organizational work culture.
Hofstede (1982):
The principles of conflict avoidance and common respect are manifested within the social life of Javanese people through a hierarchical status and collectivism. This manifestation can be seen in the environmental-social relationship in Indonesia, either in business organization or in governmental bodies.
Mash and Goodfellow (1997):
There are two basic concepts of leadership and decision-making process according to the thinking of the Javanese people: Musyawarah (common interest) and Mufakat (mutual decision). They have become an obligation that must be done by a leader in making the decisions.
March and Olsen (1989: 22):
Behaviors are incorporated within or directed by cultural dictate and social norm. Act is often based on identification of behaviors, which generally agree with regular thinking, not on the results measurement expected from the available choices.
Hines (1988), Miller (1994), Morgan (1988; 1998), and Munro (1998):
Provided that practice of financial disclosure, as part of accounting activities, relates to values, therefore the application of the Javanese ideas on social-ethical relationship shall function to comprehend the quality of the financial disclosure is issued by an organization.
Jaggi (1975):
Orientation to value by a manager remarkably affects the manager in making his/her financial statement; individual value orientation of a society generally depends on the society's social environment.
Sudarwan and Fogarty (1996):
The making of accounting and reporting practice standards is patterned according to the change in cultural norms.
Mann (1996) and Magnis-Suseno (1997):
Javanese culture affects the way-of-life of most Indonesian people. Javanese culture also dominates cultural, business, social, and political activities in Indonesia.
Hofstede (1982):
Four dimensions of Javanese culture, which become the fundamental of business and governmental activities in Indonesia are: 1) collectivism-individualism; 2) authority; 3) conflict avoidance; and 4) masculinity-femininity.
Results:
The practice of financial reporting can be affected by either culture or politics. In Indonesia, Javanese culture has been dominant in the corporate life and behavior of business community. The Javanese way-of-thinking about ethical social relationship is considered valuable to understand the practice of financial reporting of an organization.