Understanding Indonesian Values: A Preliminary Research to Identify Indonesian Culture Sabrina O. Sihombing sabrinasihombing@gmail.com Feriadi D. Pongtuluran feriadi_pongtuluran@uph.

edu Business School University of Pelita Harapan Abstract Culture is one topic that attracts researchers from many major disciplines such as psychology, marketing, consumer behavior, and other disciplines. This is because culture affects people to behave. Furthermore, culture is the most basic cause of a persons wants and behavior. Many research use of Hofstedes cultural dimensions to measure culture. The dimensions identified by Hofstede (1980) are regarded as the most widely used and accepted for understanding culture in many social phenomena. On the other hand, Hofstedes cultural dimensions have been criticized by many scholars. For instance, Hofstedes work is claimed as out-of-date because the empirical work took place in 1967-1973. Hofstedes work has also been criticized for reducing culture to four or five dimensions. On the other hand, identifying reliable cultural dimensions for each nation would give major contribution to cross-cultural research. Therefore, although cultural dimensions developed by Hofstede gives contributions to understand and measure culture, but there is a need to develop and identify Indonesian culture. This is because there is limited research in identifying Indonesian culture. Therefore, this study aims to identify Indonesian culture by identifying Indonesian values as an initial stage in scale development. More than 2,000 open-ended questionnaires were distributed to respondents in Jakarta, Bandung, Semarang, and Surabaya. All respondents were chosen with two main criteria: (1) that respondent live in one of four research areas (Jakarta, Bandung, Semarang, or Surabaya), and (2) that respondents should work in the area that they live. A total of 1455 usable questionnaires were used to identify Indonesian values. The result shows that gotong royong (mutual aid), demokrasi (democracy), agama (religion), Pancasila, budaya (culture), and kekeluargaan (family) are examples of Indonesian values. However, the results also shows that respondents state that korupsi (corruption), individualisme (individualism), KKN (Korupsi, Kolusi, Nepotisme: corruption, collution, nepotism), and egois (ego) are also examples of Indonesian values. Those values that have been pointed by respondents then were proceeded to develop indicators. This research provides those indicators. Those indicators then will be used to identify Indonesian culture dimensions. Key words: culture, Indonesian values, consumer behavior, scale development, indicators Introduction Culture is one topic that attracts researchers from many major disciplines. This is because culture affects people to behave (Craig and Douglas, 2006; Maheswaran and Shavitt, 2000). Furthermore, culture is the most basic cause of a persons wants and behavior (Luo, 2009). In relating with behavior, one people may behave differently compare to another people as a result of cultural differences. For example, people in

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

Indonesia will give something to other people by using their right hand. This is the acceptable behavior for Indonesian. On the other hand, people in the United States may give other people not only by using their right hand but also their left hand. This is because they have no restriction associated with the left hand. Extensive research has been conducted to understand the influence of culture on people behavior. For instance, culture influences people behavior in transferring their knowledge (e.g., Ardichvili et al., 2006; Hawkie, 2006), conflict management strategy (Kaushal and Kwantes, 2006), education (e.g., Manikutty et al., 2007; Demmert, 2005; Hwang et al., 2003; Lin et al., 2002; Yoo and Donthu, 2002), economic (Guiso et al., 2006), adoption of innovation (Singh, 2006), purchase behavior (Davis et al., 2008; Kacen and Lee, 2002), post-purchase behavior (Tsoukatos and Rand, 2007), and other people behavior. Many research use of Hofstedes cultural dimensions to measure culture (for example: Pirouz (2010), de Lorenzo et al. (2009), Kaasa and Vadi (2008), Yintsou (2007), Adapa (2008), Davis et al. (2008), Jones (2007), Tsoukatos and Rand (2007), DeJong, Smeets, and Smits (2006), Singh (2006), Lam and Lee (2005), Le and Stockdale (2005), Dash, Bruning, and Guin (2004), Goodwin and Giles (2003), Hwang, Francesco, and Kessler (2003), Kacen and Lee (2002), Pheng and Yuquan (2002), Oliver and Cravens (1999), Steenkamp, terHofstede, and Wedel (1999). The dimensions identified by Hofstede (1980) are regarded as the most widely used and accepted for understanding culture in many social phenomena (Kalliny and Hausman, 2007; Soares et al., 2007; de Jong et al., 2006; de Mooij, 2004). Furthermore, Hofstedes cultural dimensions are also known as the most popular metric of culture (Yoo and Donthu, 2002). On the other hand, Hofstedes cultural dimensions have been criticized by many scholars. For instance, Hofstedes work is claimed as out-of-date because the empirical work took place in 1967-1973. Hofstedes work has also been criticized for reducing culture to four or five dimensions. Furthermore, the applicability of the dimensions to all culture leads to the critique that one can conjuncture that other types of samples might yield different dimensions and order of nations (Schwartz, 1994 and Erez and Earley, 1993, cited by Soares et al., 2007). Identifying reliable cultural dimensions for each nation would give major contribution to cross-cultural research (Chan, 2009). This is because the usefulness of the concept of culture is to give sufficient information about cultural differences by being able to unpack it (Soares et al., 2007). Therefore, this study aims to identify Indonesian values as a foundation to develop Indonesian cultural dimensions. This article is structured as follows: First, the literature review of culture is presented. Then we report in detail on item generation and scale development. This paper concludes with an outlook to future research. Literature Review Culture: definitions and elements There are many definitions of culture as there are in anthropology, sociology, psychology, marketing, and consumer behavior texts (Luo, 2009). However, there is no single culture definition as Kroeber and Kluckhohn (1952, in Davis et al., 2008) found 164 different definitions of culture in the anthropological and sociological literature. Tylor (1871, cited by Oliver and Kandadi, 2006) is one of the first researchers who provide the definition of culture. According to Tylor, culture is defined as that complex whole includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society. Another anthropologist, Greets (1973) defined culture is an historically transmitted pattern of meanings embodied in symbols, a system of inherited conceptions expressed in symbolic forms by means of which men communicate, perpetuate, and develop their knowledge about and their attitudes toward life Hofstede (1980) defined culture as the collective programming of the mind which distinguishes the members of one human group from another. Furthermore, Hofstede (1991) stated that culture is as mental programming which includes patterns of thinking and feeling and potential acting. Hofstede further stated that culture is software of the mind. Hofstedes analogy about culture as a software is an interesting analogy. He used a part of computer to explain the role of culture for human life. The role of software is important because the software is a main part of computer. No work can be conducted in a computer

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

without software. In other words, software is a crucial part in a computer. Therefore, culture is also a crucial part in human behavior. Culture has several elements. According to several writers (e.g., Solomon, 2010; Wells and Prensky, 1996) those elements are: language, material artifacts, myths, rituals, custom, laws, and values. Those elements are described as follows. Language is one important aspect of culture that should be considered. This is because language can be problematic when translating product names, or promotional messages, or slogans, or other things into foreign languages. For example, General Motor found that Nova (the name of a car) literally means doesnt go in Spanish (Lamb et al., 2010). Another example is Daihatsu Be-go in Japan was introduced as Daihatsu Terios in Indonesia. This is because Be-go in Indonesian language means stupid. The second element of culture is material artifact. Material artifacts are goods a culture has imbued with special meaning (Wells and Prensky, 1996). Gold is an artifact within the Indian consumer society. Furthermore, gold possession is embedded in the customs and the traditions that carry significant importance to the people (Tariq et al., 2007). Another element of culture is ritual. A ritual is a set of multiple, symbolic behaviors that occurs in a fixed sequence and is repeated periodically (Rook, 1985 cited by Solomon, 2010). Examples of ritual in Indonesia are ruwatan and slametan. Ruwatan is a ritual to clean somebody self in order to eliminate problems that already in somebodys self since s (he) was born (http://www.budaya-indonesia.org). Slametan is the most common religious ritual which symbolizes the mystic and social unity of those participating in it (Forshee, 2006). The fourth element of culture is custom. Custom is defined as culturally acceptable pattern of behavior that routinely occurs in a particular situation (Wells and Prensky, 1996). Mudik is one example of Indonesia custom. Mudik is a journey to go back to home-towns and gather with big families. It is usually done in the end of the fasting month. Then, another element of culture is a myth. A myth is a story with symbolic elements that represents a cultures idea (Solomon, 2010). This story often emphasizes on some kind of conflict between two opposing forces, and its outcome serves as a moral guide for listeners. Every culture creates mythical characters to impart moral lessons. For example, an Indonesian myth Malin Kundang. This myth tells about a poor women and her son (that is, Malin Kundang). Malin Kundang decided to go out from their village in order to become rich after return home. In short, Malin Kundang later became a wealthy person who has a huge ship, great wealth, and a beautiful wife. In one of his journey, his ship landed on a beach. The villagers recognized him and his mother ran to the beach to meet her beloved son again. However, Malin Kundang denied meeting his mother because his mother looks old, poor and dirty woman. The broken-hearted old mother then cursed the son turned into a stone (Wiriatmaja, 2010). Law is another element of culture. Law is defined as formal rules and regulations that have the sanction of a governmental body to require or prohibit specific behavior (Wells and Prensky, 1996). Finally, the most defining elements of culture is values (Lamb et al., 2010). A value is defined as a type of belief about how one ought or ought not to behave (Rokeach, 1968). Different cultures will provide different values. For instance, Western values are characterized by separateness. In other words, western people are relatively independent and individualistic. On the other hand, non-western values are more interdependent and collective (Evans et al., 2009). Table 1 provides values differences for several countries.

Table 1. Values differences in several countries

American values* Achievement and success Activity Efficiency and practicality Progress Australian values** Respect for democracy A strong sense of justice A sense of fairness Tolerance Chinese values*** Family orientation Guanxi Yuan Mianzi Renqing Thailand values**** Ego orientation Grateful relationship orientation Smooth interpersonal Malaysian values***** Valuing time Perseverance Pleasure of working Dignity of simplicity

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

Material comfort Individualism Freedom External conformity Humanitarianism Youthfulness Fitness and health

relation Character orientation Kindness Flexibility Influence of adjustment examples orientation Obligation of duty Religiosity Wisdom of orientation economy Education Patience competence Improvement of orientation talent Interdependence Joy of originating orientation Fun-leasure orientation Achievement-task orientation Source: * Schiffman and Kanuk (2010), **Blackwell et al. (2007), *** Sian et al. (2007), **** Komin (1995, in Rachman,2007 )

Care for others A powerful sense of egalitarianism A less selfish society Freedom of selfdetermination

reciprocity

The Measurement of Culture There are three approaches that are frequently used to examine culture: content analysis, consumer fieldwork, and value measurement instruments (Schiffman et al., 2010). However, many research on culture applied values as one way of measuring culture (Javidan et al., 2006; Yo and Donthu, 2002) There are several ways to measure values (Schiffman et al., 2010). Firstly, values can be measured by inferring values from the cultural milieu. For instance, marketers can identify values reflected in magazine titles, TV programs, comic books, and others. Schiffman et al. (2010) also pointed out that popular songs are also indicators of values. In the specific, the violent song lyric can be as an indication of a decline in values. Secondly, values can be measured by using means-end chain analysis. This approach assumes that people link very specific product attributes (indirectly) to terminal values: We choose among alternative means to attain some end state we value (Solomon, 2009). Solomon further stated that a technique that called laddering is used to uncover consumers association between specific attributes and these general consequences. Finally, values can be measured by using value instruments such as Rokeach Value Survey (RVS) and List of Values (LOV). Furthermore, there has been a gradual increase in measuring values by means of survey (questionnaire) research. Researchers use data collection instruments to ask people how they feel about such as basic personal and social concepts as freedom, comfort, national security, and peace (Solomon et al., 2010). This is because the values that characterize a society cannot be observed directly. They can be inferred from various cultural products or asking members of society to score their personal values (de Mooij, 2004). According to Schiffman et al. (2010), there are two main criteria to select the specific core values. First, the value must be pervasive. In other words, a significant portion of the people in a society (for example, Indonesia) must accept that value and use it as a guide for their behavior. For instance, harmony is one of Indonesian core values. This is because Indonesian believes that individual should serve as a harmonious part of the family or group, and the nation (Wirawan and Irawanto, 2007). Second, the value must be enduring. The specific value must have influenced the actions of people in that society for over an extended period of time. On the other hand, values have changed in many places in the world the last several decades as the result of globalization (Hawkins and Mothersbaugh, 2010). Table 2 shows how values changes in western culture.

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

Table 2. Values changes in Western culture

Traditional values New values Self-denial ethic Self-fulfillment ethic Higher standard of living Better quality of life Traditional sex roles Blurring of sex roles Accepted definition of success Individualized definition of success Traditional family life Alternative families Faith in industry, institutions Self-reliance Live to work Work to live Hero worship Love of ideas Expansionism Pluralism Patriotism Less nationalistic Unparalleled growth Growing sense of limits Industrial growth Information and service growth Receptivity to technology Technology orientation Source: Plummer (1989, in Blackwell et al., 2007, p.311)

Hofstedes Cultural Dimensions Hofstede originally identified four dimensions of culture. Those dimensions are power distance, uncertainty avoidance, individualism and collectivism, and masculinity and femininity. Then, in 1988, Hofstede and Bond added a fifth dimension which called as long-term orientation. According to Hofstede (2005), power distance is about inequality in a society. It is defined as the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally (Hofstede, 2005, p.46). The second dimension is uncertainty avoidance. Uncertainty avoidance reflects to intolerance for uncertainty. It is defined as the extent to which the members of a culture feel threatened by ambiguous or unknown situations (Hofstede, 2005. p.167). The third dimension is individualism and collectivism. Hofstede (2005) stated that individualism and collectivism has to do with the relationship the individual has with the group and society. In the specific, individualism and collectivism is about the concept of the self and others. Individualist refers to people who live in a society in which the interests of the individual prevail over the interest of the group and societies. All societies have individuals and groups, however, individualism stresses the smallest unit as being that where the solution lies (Usunier, 2000).On other hand, collectivism refers to people who live in societies in which the interest of the group prevails over the interest of the individual. In other words, people who live in collectivist society prefer to act in a society as we rather than I. The fourth dimension is masculinity and feminity. Masculinity versus feminity refers to the desirability of assertive behavior against the desirability of modest behavior. According to Hofstede (2005, p.120), a society is called masculine when emotional gender roles are clearly distinct: men are supposed to be assertive, tough, and focused on material success, whereas women are supposed to be more modest, tender, and concerned with quality of life. Furthermore, a society is called feminine when emotional gender roles overlap: both men and women are supposed to be modest, tender, and concerned with the quality of life. A fifth dimension is long term orientation. Hofstede added long term orientation as a new dimension to his earlier four cultural dimensions in 2001. Long-term orientation refers to the fostering of virtues oriented toward future rewards in particular, perseverance and thrift. On the other hand, short-term orientation reflects the fostering of virtues related to the past and present in particular, respect for tradition, preservation of face, and fulfilling social obligations (Hofstede, 2005, p.210). Hofstedes cultural dimension is the most cultural dimensions applied to measure culture in many management and psychology research (Kallini and Hausman, 2007; de Jong et al., 2006; de Mooij, 2004; Baskerville, 2003, Yoo and Donthu, 2002). Those dimension are usually applied because of its parsimony in understanding and measuring culture (Kirkman et al., 2006).

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

Although those dimensions are often applied in many research , but Hofstedes work has been critized by other researchers for several reasons (Table 3). For instance, the work of Hofstede is claimed as out-ofdate because it took place in 1967 - 1973 (Jones, 2007; Tsoukatos and Rand, 2007; Soares et al., 2007). On the other hand, todays world is rapidly changing as a result of changing in global environments, economic, cultural, political, and others (Jones, 2007; Steenkamp, terHofstede, and Wedel, 1999). Therefore, some changes are possible (Kaasa and Vadi, 2008). Examples of values changes in Western cultures can be seen again in Table 2. Table 3. Critiques toward Hofstedes cultural dimensions
Critiques Hofstedes scores across cultural dimensions for many countries may be wrong or out-of-date because the empirical work took place in 1967-1973. On the other hand, todays rapidly changing global environment may give different results. Reducing culture to four or five dimension conceptualization Hofstedes country scores are based on work-related values. The questionnaire was designed based on IBMs needs and interest. Hofstede used sample from a single multinational corporation (i.e., IBM). Hofstede utilized equating nation states with culture. Source: cited from references stated above Researchers (year) Kaasa and Vadi (2008); Jones (2007); Soares, Farhangmehr, and Shoham (2007); Tsoukatos and Rand (2007); Steenkamp et al. (1999)

Jones (2007); Kirkman, Lowe, and Gibson (2006) Steenkamp, terHofstede, and Wedel (1999)

Jones (2007); Tsoukatos and Rand (2007); Javidan et al. (2006); Steenkamp et al. (1999) Baskerville (2003)

Indonesian Culture There are two opinions on Indonesian culture (Gunadi, Sutarno, Handayani, and Lutfiah, 1995; Sastrosupono, 1982). The first opinion is there is no Indonesian culture. Indonesian culture is only about conversation in order to reach the goal, that is, Indonesian culture itself. The second opinion is Indonesian culture is exist. According to several Indonesian writers (for example: Kayam, 1997; Gunadi et al., 1995; Hassan 1989; Joesoef, 1987; Suriasumantri, 1986; Sastrosupono, 1982), Indonesian culture is defined as the peak s of all tribe cultures. Indonesian culture is also understood as a synthesis from a various variety of culture that then produces a new culture. There are several indicators of Indonesian culture such as national language (Indonesian language), Pancasila, Undang Undang Dasar 1945, development and modernization, national songs, and national arts. A short explanation of Indonesian culture is as follows. The first example is Indonesian language. Indonesian language is as a representation of Indonesian culture that can be used as a tool to unity and to identify people as an Indonesian (Hassan 1989, p.21). The second example is Pancasila. Pancasila is the philosophical foundation of the Indonesian. Furthermore, Pancasila is determined by values that have been hold by Indonesian people. Most Indonesian people know Pancasila wherever they live even though they understand and apply Pancasila differently according to their situation (Joesoef, 1987). Magnis-Suseno (1996) has a different opinion about Indonesian culture. According to him, Indonesian culture is as the plural culture which involves many tribes culture such as Javanese culture, Bataknese culture, Sundanese culture, and others. Furthermore, Magnis-Suseno (1996) has an opinion that Javanese culture (or other tribe cultures) represents Indonesian culture.

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

Sarwono (1998) explains that even though there are many tribe cultures in Indonesia but there are dominant core values that Indonesian people hold. Those core values are based on criteria that those values should be accepted and applied whether in Indonesian people attitude or behavior. Those values are harmony, tolerance, mutual assistance (gotong-royong), and religious. Harmony and tolerance means to maintain balance in society. For example, peoples ambition should not be expressively, but Indonesian people should act and say something indirectly in order to avoid friction with other people. Mutual assistance means work together in order to achieve something. For example, many people in a village will work together to clean their village once a month or to celebrate something such as Independence Day or religious days. Harmony, tolerances, and mutual assistance are known as collectivism culture (Hofstede, 1994). Another Indonesian values is religious. Indonesia is a country which based on religious values. Changes in Indonesian Culture As stated before, values have changed in many places in the world the last several decades as the result of globalization (Hawkins and Mothersbaugh, 2010). Values, on the other hand, are important factor to represent culture. Therefore, it can be stated that there are changes in Indonesian cultures. There samples of Indonesian culture has been changed. As stated by Schiffaman et al. (2010) that popular songs are also indicators of values changes. For instance, the openness of having affair song lyric can be as an indication of a decline in values. The song with the title of Sephia from the band called Sheila on 7 is the first song which demonstrated the openness in having affair in Indonesia. Other songs with the same themes then followed. Indonesian people then are seemed accepted the phenomena of having an affair. Research Method Steps in Scale Development There are five steps in developing the Indonesian values as shown in Picture 1. The first step was item generation. Items were generated through three ways: (a) reviewing the literature review on culture and Indonesian culture, (b) exploratory study, and (c) in-depth interview with experts about the research context, that is, Indonesian culture. This generation of items can be stated as the most important part of developing sound measures (Hinkin, 1995, p.971). A combined deductive and inductive approach was applied to generate items. The second step is scale development. In this part, there are several important aspects to be considered such as the use of the statements/items (i.e., positively or negatively worded), number of items, questionnaire response format, and sample size. The third step is data collection. Then, the next step is scale validation. Data will be examined through reliability and validity analysis. The final step is to pretest indicators in several cities. Work to-date has completed into step 2. Picture 1. Research Process

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

Research Problem

Literature Review

Research Method Scale development

Analysis and Discussion

Conclusions

Step 1: Generate items

Step 2: Scale development

Step 3: Data collection 3.1 Deciding questionnaire lay-out 3.2 Data collection (Jakarta, Bandung, Semarang, Surabaya)

Step 4: Scale evaluation

Step 5: Indicators pre-test 5.1 Indicators pre-test (Jakarta, Bandung, Semarang, Surabaya)

RESEARCH OUTCOMES

1.1 Culture definitions and Indonesian culture definitions 1.2 Exploratory survey (Jakarta, Bandung, Semarang, Surabaya) 1.3 In-depth interview with experts 1.4 Validity examinations 1.4.1 Content validity

2.1 Deciding items to be used 2.2 Sample considerations 2.3 Deciding words to be used (positive or negative statements) 2.4 Response format

4.1 Reliability and validity examinations 4.1.1 Reliability - Cronbach alpha - corrected itemtotal correlation 4.1.2 Validity - Construct validity -- convergent validity -- discriminant validity 4.2 Data analysis 4.2.1 Single dimension analysis 4.2.2 Higher-order analysis

Indonesian cultural dimensions

Indicator outcomes * Indonesian value items

Indicator outcomes * Items to be applied in the questionnaire

Indicator outcomes * Data (come from respondents who live in Jakarta, Bandung, Semarang, Surabaya)

Indicator outcomes * Dimensions of Indonesian culture (draft)

Indicator outcomes * Dimensions of I Indonesian culture (final)

parts of research done

Source: developed for this research based on Verbeke (2007), Parasuraman et al. (2005), Adcock and Collier (2001), Clark and Watson (1995), Churchill (1979)

Results Item generation As appeared in Picture 1, the first step in the scale development process is to generate scale items. Items were generated from a combined deductive and inductive approach. The deductive approach emphasizes theoretical definitions of the concept (that is Indonesian values). On the other hand, the inductive approach starts from empirical reality. In this research, an exploratory research was conducted in which respondents were asked to describe in an open-ended format about Indonesian values. There were 2100 questionnaires were distributed to respondents in Jakarta, Bandung, Semarang, and Surabaya. All respondents were chosen with two main criteria: (1) that respondent live in one of four research areas (Jakarta, Bandung, Semarang, or Surabaya), and (2) that respondents should work in the area that they live. A total of 1455 usable questionnaires were used to identify Indonesian values. In-depth interviews with experts were also conducted. Five experts were chosen based their expertise in culture subjects. The results of those interviews were an understanding of values and Indonesian values. In that interview, experts were also asked whether frequently mentioned values are parts of Indonesian values. Multi-item scales then were developed based on frequently mentioned values (Table 4 and Table 5). There were 162 items were proposed for further analysis. Furthermore, the content validity of the items was assessed by two judges. Those judges were asked whether those items represent frequently mentioned value statements. The results showed that all items were retained and small revisions were made due to clarity improvement.

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

Table 4. Frequently mentioned values (positive) Rank Values

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Mutual cooperation (gotong-royong) Religion (agama) Tolerance (toleransi/tenggang rasai) Democracy (demokrasi) Five principles of the Republic of Indonesia (Pancasila) Culture (budaya) Kinship, Family (kekeluargaan) Unity, Oneness (persatuan dan kesatuan) Hospitable (ramah-tamah) Well mannered (sopan santun) Consensus (musyawarah) Social (sosial) Humanity (kemanusiaan) Justice (keadilan) Honesty (kejujuran) Divinity (KeTuhanan) Togetherness (kebersamaan) Mutual assitance (tolong-menolong) Mutual respect (saling menghormati) The Constitution of Indonesia (UUD 1945) Harmony (kerukunan)

Table 5. Frequently mentioned values (negative) Rank Values

1 2 3 4 5 6 7 8 9 10 Individualism / egoist (individualisme/egois) Corruptiopn (korupsi) Corruption, Collusion, and Nepotism (KKN: korupsi, kolusi, dan nepotisme) Materialism (materialistis) Comsumtive (konsumptif) Anarchy (anarki) Group priority (mementingkan golongan) Western oriented] (mengikuti budaya barat) Fanatism (fanatisme) Hedonism (hedonisme)

Conclusion Understanding culture and specifically Indonesian culture are important for many researchers and practitioners. This is because culture shapes people behavior. In other words, understanding culture also means that we can understand other people and also knowing ourselves (Ljubi et al., 2009). Researching Indonesian cultural dimensions is also important. This is because many research focuses on culture are applying Hofstedes cultural dimensions. Thanks to Hofstede for pioneering cultural dimensions. However, Hofstedes cultural dimensions have also been criticized by many scholars. Again, as stated before that the applicability of the dimensions to all culture may not appropriate. Thus, researching Indonesian cultural dimensions is a must. We realize that scale development process described in this paper is not yet completed. However, the work to-date provided Indonesian values which can be used in by other researchers working in this area. Acknowledgement

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

This paper is part of our research with the title of Pengidentifikasian dimensi-dimensi budaya Indonesia: pengembangan skala dan validasi. This research is funded by Hibah Bersaing research grant (2011) and LPPM University of Pelita Harapan (2011).

References
Anonim (2010). Ruwatan. Available at: http://www.budaya-indonesia.org. Downloaded at 10 August 2010. Adapa, S. (2008). Adoption of internet shopping: cultural considerations in India and Austalia. Journal of Internet Banking and Commerce, 13, 2. Available at: http://www.araydev.com/commerce/jibc/. Adcock, R. dan Collier, D. (2001). Measurement validity: a shared standard for qualitative and quantitative research. American Political Science Review, 95, 3, 529-546. Ardichvili, A., Maurer, M., Li, W., Wentling, T. and Stuedemann, R. (2006). Cultural influences on knowledge sharing through online communities of practice. Journal of Knowledge Management, 10, 1, 94-107. Bagozzi, R.P. (1994). Structural equation models in marketing research: basic principles, in Principles of Marketing Research, R.P. Bagozzi (ed.), Masschusetts: Blackwell Publishers. Baskerville, R.F. (2003). Hofstede never studied culture. Accounting Organizations and Society, 28, 1-14.

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

10

Birukou, A., Blanzieri, E., Giorgini, P. and Giunchiglia, F. (2009). A formal definition of culture. Technical Report # DISI-09-021, University of Trento, Italy. http://eprints.biblio.unitn/it/archieve/0001604/01/021.pdf. Chan, A.M. (2009). Measuring cross-cultural values: a qualitative approach. International Review of Business Research Papers, 5, 6, 322-337. Churchill, G.A. (1979). A paradigm for developing better measure of marketing constructs. Journal of Marketing Research, 16, 64-73. Craig, C.S. and Douglas, S.P. (2006). Beyond national culture: implications of cultural dynamics for consumer research. International Marketing Review, 23, 2, 322. Dash, S., Bruning, E.R. dan Guin, K.K. (2004). Bonding and commitment in buyer-seller relationships: a crosscultural comparison in banking. ASAC Conference, Quebec City, Quebec. Davis, L., Wang, S. and Lindridge, A. (2008). Culture influences on emotional responses to on-line store atmospheric cues. Journal of Business Research, 61, 806-812. De Mooij, M. (2004). Consumer behavior and culture: consequences fro global advertising and advertising, Thousand Oaks, CA: Sage. De Jong, E., Smeets, R. and Smits, J. (2006). Culture and openness. Social Indicators Research, 78, 111-136. De Lorenzo, G.J., Kohun, F.G., Burak, V., Belanova, A. and Skovira, R.J. (2009). A data driven conceptual analysis of globalization cultural affects and Hofstedian organization of frames: the Slovak Republic example. Informing Science amd Information Technology, 6, 461-470. Evans, M., Jamal, A. and Foxall, G. (2009). Consumer Behavior. England: John Wiley & Sons, Ltd. Forshee, J. (12006). Culture and customs of Indonesia. USA: Greenwood Press. Geertz, C. (1973). Religion As a Cultural System. In The Interpretation of Cultures. Pp. 87-125. New York: Basic Books. Goodwin, R. and Giles, S. (2003). Social support provision and cultural values in Indonesia and Britain. Journal of Cross-cultural Psychology, 34, X, 1-6. Guiso, L., Sapienza, P. and Zingales, L. (2006). Does culture affect economic outcomes? Journal of Economic Perspectives, 20, 2, 23-48. Gunadi, I.H, Sutarno, Handayani, T. dan Lutfiah, A. (1995). Wujud, Arti dan Fungsi Puncak-Puncak Kebudayaan Lama dan Asli Bagi Masyarakat Pendukungnya, Semarang: Departemen Pendidikan dan Kebudayaan. Lam, D.C.S. and Lee, A.Y.C. (2005). The influence of cultural values on brand loyalty. ANZMAC Conference. http://smib.vuw.ac.nz:8081/www/anzmac2003/cd-site/pdf/3../3.Lam.Lee.pdf. Downloaded at 7 August 2010. Lamb, C.W., Hair, J.F. and McDaniel, C. (2009). Essentials of Marketing: 6e. USA: Cengage. Lee,C. dan Green, R.T. (1991). Cross-cultural examination of the Fishbein behavioral intentions model. Journal of International Business Studies, 2nd Quarter, 289-305. Ljubi, F., Bezi, H., and Vugrinovi, A. (2009). Economic impact of cross-cultural understanding. http://oliver.efri.hr/~euconf/2009/docs/Session6/5%20Ljubic%20Bezic%20Vugrinovic.pdf. Downloaded at 7 September 2010. Hassan, F. (1989), Renungan Budaya, Jakarta: Balai Pustaka. Hawkins,D.I. and Mothersbaugh, D.L. (2010). Consumer Behavior: Building Marketing Strategy. NY: McGraw-Hill. Hofstede, G. (1980). Cultures consequences: international differences in work-related values.Beverly Hills, CA: Sage. Hofstede, G. dan Bond, M.H. (1988). The Confucius connection: from cultural roots to economic growth. Organizational Dynamics, 16, 4, 5-21. Hofstede, G. (1994). Cultures and organizations: software of the mind. London: Harper-Collins Publishers. Hofstede, G. (1980). Cultures consequences: international differences in work related values. Sage: Beverly Hills, CA. Hwang, A., Francesco, A.M. and Kessler, E. (2003). The relationship between individualism-collectivism, face, and feedback and learning process in Hong Kong, Singapore, and the United States, Journal of Cross-Cultural Psychology, 34, 1, 72-91. INTAN (1992). Tonggak dua belas. Kuala Lumpur: INTAN. Joesoef, D. (1987). Pancasila, kebudayaan, dan ilmu pengetahuan dalam Pancasila sebagai Orientasi Pengembangan Ilmu, Prawihardjo, S.H., Bakker, Sutrisno, S. (editor), Yogyakarta: PT. BP Kedaulatan Rakyat. Jones, M.L. (2007). Hofstede culturally questionable? Oxford Business & Economics Conference. Oxford, UK, 2426 June. Kacen, J.J. Lee, J.A. (2002). The influence of culture on consumer impulsive buying behavior. Journal of Consumer Psychology, 12, 1, 163-176.

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

11

Kalliny, M. and Hausman, A. (2007). The impact of cultural and religious values on consumers adoption of innovation. Academy of Marketing Studies Journal, 11, 1, 125-136. Kirkman, B.L., Lowe, K.B. dan Gibson, C.B. (2006). A quarter century of Cultures Consequences: a review of empirical research incorporating Hofstedes cultural values framework. Journal of International Business Studies, 37, 285-320. Komin, S. (1995). Socio-cultural influences in managing for productivity in Thailand. In Hwang, K-K (Ed.). Easterization: Socio-cultural impact on productivity. Tokyo: Asian Productivity Organization. Kroeber, A.L. and Kluckhohn, C. (1952). Culture: a critical review of concepts and definitions. Papers of the Peabody Museum of American Archaeology and Ethnology, 47, 41-72. Leung, K., Bhagat, R.S., Buchan, N.R., Erez, M. and Gibson, C.B. (2005). Culture and international business: recent advances and their implications for future research. Journal of International Business Studies, 36, 357-378. Lubis, M. (2001). Manusia Indonesia (Sebuah Pertanggungjawaban). Jakarta: Yayasan Obor Indonesia. Luo, Y. (2009). Analysis of culture and buyer behavior in Chinese market. Asian Culture and History, 1, 1, 25-30. Magnis-Suseno, F. (1996), Budaya dan pengaruhnya terhadap budaya perusahaan Indonesia. Usahawan, No. 7, Juli. Maheswaran, D. dan Shavitt, S. (2000). Issues and new directions in global consumer psychology. Journal of Consumer Psychology, 9,2, 59-66. Manikutty, S., Anuradha, N.S., and Hansen, K. (2007). Does culture influence learning styles in higher education? International Journal of Learning and Change, 2, 1, 70-87. Murray, J.B. dan Evers, D.J. (1989). Theory borrowing and reflectivity interdisciplinary fields. Advances in Consumer Research, 16, 647-652. Nairn, S. (2009). Addressing race and culture in nurse education. In Transforming nursing education: the culturally inclusive environment. Bosher, S.D. and Pharris, M.D. (editors). NY: Springer Publishing Company, LLC. Nisbett, R.E. (2003). The geography of thought: how asians and westeners think differently and why. NY: The Free Press. Oliver, E.G. dan Cravens, K.S. (1999). Cultural influences on managerial choice: an empirical study of employee benefit plans in the United States. Journal of International Business Studies, 30, 4, 745-762. Oliver, S. and Kandadi, K.R. (2006). How to develop knowledge culture in organizations? A multiple case study of large distributed organizations. Journal of Knowledge Management, 10, 4, 6-24. Parasuraman, A., Zeithml, V.A. dan Malhotra, A. (2005). E-S-QUAL: a multiple-item scale for assessing electronic service quality. Journal of Service Research, 7, 213-233. Peter, J.P. and Olson, J.C. (2005). Consumer Behavior & Marketing Strategy. 7th edn., NY: McGraw-Hill. Pheng, L.S. and Yuquan, S. (2002). An exploratory study of Hofstede;s cross-cultural dimensions in construction projects. Management Decision, 40, 1, 7-16. Plummer, J.T. (1989). Changing values. Futurist 23 January, p.10. Rachman, W.R.A. (2007). Research on work values in Malaysia and Thailand: a cross-cultural research proposal. The 4th International Postgraduate Research Colloquium. IPRC Proceedings, 197-203. Rook, D.W. (1985). The ritual dimensions of consumer behavior. Journal of Consumer Research, 12, 251-264. Sarwono, S.S. (1998). Cultural values and marketing practices in Indonesia. Jurnal Ekonomi dan Bisnis Indonesia, 13, 2, 90-100. Sastrosupono, M.S. (1982). Menghampiri Kebudayaan, Bandung: Penerbit Alumni. Sian, W. Razzaque, M.A. and Keng, K.A. (2007). Chinese cultural values and gift-giving behavior. Journal of Consumer Marketing, 24, 4, 214-228. Singh, S. (2006). Cultural differences in, and influences on, consumers propensity to adopt innovations. International Marketing Review, 23, 2, 173-191. Soares, A.M., Farhangmehr, M. dan Shoham, A. (2007). Hofstedes dimensions of culture in international marketing studies. Journal of Business Research, 60, 277-284. Solomon, M.R. (2009). Consumer Behavior: Buying, Having, and Being. NJ: Pearson Prentice Hall. Steenkamp, J.M.E., ter Hofstede, F. dan Wedel, M. (1999). A cross-national investigation into the individual and national cultural antecedents of consumer innovativeness, Journal of Marketing, 63, 55-69. Steenkamp, J.E.M. dan Baumgartner, H. (1998). Assessing measurement invariance in cross-national consumer research. Journal of Consumer Research, 25, 78-90. Steenkamp, J.E.M. dan Van Trijp, H.C.M. (1991). The use of LISREL in validating marketing construct. International Journal of Research in Marketing, 8, 283-299. Subiyantoro, E. dan Hatane, S.E. (2007). Dampak perubahan kultur masyarakat terhadap praktik pengungkapan laporan keuangan perusahaan publik di Indonesia, Jurnal Manajemen & Kewirausahaan, 9, 1, 20-29.

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

12

Suharnomo (2009). The impact of culture on human resource management practices: an empirical research finding in Indonesia. Proceedings at Oxford Business & Economics Conference, June 24-26, Oxford: UK. Summers, J.O. (2001). Guidelines for conducting research and publishing in marketing: from conceptualization through the review process., Journal of the Academy of Marketing Science, 29, 4, 405-415. Tariq, H., McKechnie, D.S., Grant, J. and Phillips, J. (2007). Shopping for gold! A Ritual Experience. Available at: http://www.abwic.org/Proceedings/2007/ABW07-203.doc. Downloaded at 10 August 2010. Triandis, H.C. (1972). The analysis of subjective culture. NY: John Wiley & Sons. Tsoukatos, E. dan Rand, G.K. (2007). Cultural influences on service quality and customer satisfaction: evidence from Greek insurance. Managing Service Quality, 17, 4, 467-485. Tylor, E.B. (1871). Primitive culture: researchers into the development of mythology, philosophy, religion, art, and custom, Vol.1., London: John Murray. Usunier, J. (2000). Marketing across cultures. England: Pearson Education Limited. Verbeke, W. (2000). A revision of Hofstede et al.s (1990) organizational practices scale. Journal of Organizational Behavior, 21, 587-602. Wirawan, D. and Irawanto (2007). National culture and leadership: lesson from Indonesia. Jurnal Eksekutif, 4, 3, 359-367. Wiriaatmaja, E. (2010). Malin Kundang, myth or truth. Available at: http://www.indonesiatogo.com/2009/06/18/malin-kundang-myth-or-truth/. Downloaded at 10 August 2010. Yintsou, H. (2007). Relationships between national culture and Hofstede model and implications for a multinational enterprise. Proceedings of the 13th Asia Pacific Management Conference, Meulbourne, Australia, 1422-1428. Yoo, B. and Donthu, N. (2002). The effects of marketing education and individual cultural values on marketing ethics of students. Journal of Marketing Education, 24, 92-103.

Paper presented at International Conference Political Economy of Trade Liberalization in Developing East Asia: Sustainability, Governance, and the Role of Small Business 24-25 November 2011, Universitas Brawijaya, Malang

13