CULTURE, LEADERSHIP BEHAVIOR AND THEIR RELATIONSHIP WITH ORGANIZATIONAL PERFORMANCE

Abstract

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 ChineseIndonesian 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.