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The Social Sciences

ISSN: Online 1993-6125
ISSN: Print 1818-5800
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A Comparison Study on Dominant Factors of Organizational Culture Between Foreign Investors and Local Investors in Indonesia (A Study of Japanese and Indonesian Automotive Companies at Jababeka Industrial Estate-Indonesia)

B.M.A.S. Anaconda Bangkara, Jann Hidajat Tjakraatmadja, Bambang Rudito and Elmira Rustam Sumintardja
Page: 7403-7407 | Received 21 Sep 2022, Published online: 21 Sep 2022

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https://doi.org/10.36478/sscience.2016.7403.7407

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Abstract

Recently, international business becomes a part of daily business activities. Having many abroad subsidiaries or investing capital in any other countries are also parts of nowadays business mechanism and indeed this will have another issue to face that is differences in culture. That is the reason why organizational culture becomes one of the essential issues nowadays. This research is aimed to compare dominant factors of organizational sub-culture or dimensions between a Multinational Company (MNC) and a local one (Indonesian company). It involved 103 respondents from MNC and 103 respondents from a local company in Jababeka Industrial Estate. All respondents are working for the production department. Factor analysis was used to find the dominant factors. The research results show 2 dominant factors for MNC whose essence is carrying “advancement aspect” which tends to be similar to create (adhocracy) culture. Whereas, there are 4 dominant factors for the local company whose essence is carrying “current aspect” which tends to be similar to collaborate (Clan) culture. From this finding, based on culture, it suggests that indonesian companies need to prepare more, particularly in facing nowadays higher competition in economic Asean community.

How to cite this article:

B.M.A.S. Anaconda Bangkara, Jann Hidajat Tjakraatmadja, Bambang Rudito and Elmira Rustam Sumintardja. A Comparison Study on Dominant Factors of Organizational Culture Between Foreign Investors and Local Investors in Indonesia (A Study of Japanese and Indonesian Automotive Companies at Jababeka Industrial Estate-Indonesia).
DOI: https://doi.org/10.36478/sscience.2016.7403.7407
URL: https://www.makhillpublications.co/view-article/1818-5800/sscience.2016.7403.7407