Culture, Leadership Behavior and Their Relationship with Organizational Performance
Sharon Bella Setiawan and Nurianna Thoha
The current condition of the furniture industry in Indonesia is slowing down due to some issues, such as low global demand and low competitiveness of this industry in Indonesia. Some companies decided to move their manufacture to Vietnam because of the problems associated with logistical costs, minimum wages and workers’ productivity. Meanwhile, the workers’ productivity is affected by their relationship with their direct leaders.
The objectives of this research are to examine the influence of Chinese and Javanese culture on leadership behavior in Chinese-Indonesian furniture companies in Jepara and to investigate the impact of that leadership behavior on the organizational performance in Chinese-Indonesian furniture companies in Jepara, Central Java.
This research was conducted using a qualitative method. The data was collected by conducting in-depth semi-structured interviews in four Chinese-Indonesian furniture companies in Jepara. The interviews were transcripted and then coded and analyzed by using thematic-data analysis.
The research revealed that the leadership behavior of the leaders in those companies were influenced by Chinese and Javanese cultures. These eventually influenced the organizational performance.
In conclusion, there are relationships between culture, leadership behavior, and organizational performance in Chinese-Indonesian furniture companies in Jepara, Central Java.
Keywords: Chinese culture, Javanese culture, Leadership behavior, Organizational performance, furniture company, Jepara.