IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/7310349.html
   My bibliography  Save this paper

Indonesian Business Environment - VOC Model and Local Culture

Author

Listed:
  • Martina Sipkova

    () (Metropolitni univerzita Praha, O.P.S.)

  • Maria Levakova

    () (Metropolitan University Prague, Czech Republic)

Abstract

Our presentation focuses on the structure of Indonesian political economy and how local form of capitalism is underpinned by social relations and culture. Specifically, in our research, we: i) analyze Indonesian business environment through the Varieties of Capitalism (henceforth VOC) model as developed by Hall and Soskice, ii) look into the reform and dynamic changes of Indonesian business environment following 1997 crisis in East Asia through the lens of VOC model, and iii) examine how Indonesian form of capitalism is underpinned by local culture by the use of GLOBE Project and Hofstede dimensions of culture. Our findings suggest that the case of Indonesia can be presented as a special type of a coordinated market economy driven by local culture with some aspects of liberal market economy, which are, to a large extent, imported from the outside. Our research also shows that the influence of international business environment and globalization combined with post-1997-crisis reform push Indonesian economy further towards modes of coordination more typical for liberal market economies, causing tensions among various actors of local political economy. Considering limited body of literature on the topic, the main contributions of our research is twofold. First, to study Indonesian form of capitalism, we apply a VOC model and connect local form of capitalism with socio-cultural characteristics of the country. Second, we apply VOC model to look at the interplay between domestic forces shaping local political economy and the influence of international environment and globalization largely reflecting (neo)liberal view of economic and business relations.

Suggested Citation

  • Martina Sipkova & Maria Levakova, 2018. "Indonesian Business Environment - VOC Model and Local Culture," Proceedings of International Academic Conferences 7310349, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:iacpro:7310349
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/43rd-international-academic-conference-lisbon/table-of-content/detail?cid=73&iid=043&rid=10349
    File Function: First version, 2018
    Download Restriction: no

    More about this item

    Keywords

    Indonesia; business environment; variety of capitalism; Asian Financial Crisis; post-crisis reform; capitalism and culture;

    JEL classification:

    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:7310349. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klara Cermakova). General contact details of provider: https://iises.net/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.